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Chapter 7
SERVICE RECOVERY
SM Unhappy Customers’
Repurchase Intentions
Unhappy Customers Who Don’t Complain
9%
Unhappy Customers Who Do Complain 37%
19%
Complaints Not Resolved
46%
54%
Complaints Resolved
70%
SM Customer Response
Following Service Failure
Service Failure
Act Quickly
Service
Learn from
Lost Custom
Recovery
Strategies
ers
y
air l
F
Le s
er
Re arn f om
co r o m
ve ust
ry
Ex atC
pe e
ri en Tr
ce
s
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Pricing
6
•
•
High Price
Price Increases
Figure 7-6
Inconvenience
• Location/Hours
• Wait for Appointment
• Wait for Service
Switching
Core Service Failure
• Service Mistakes
• Billing Errors
• Service Catastrophe
Competition
• Found Better Service
Ethical Problems
• Cheat
• Hard Sell
• Unsafe
• Conflict of Interest
Involuntary Switching
• Customer Moved Source: Sue Keaveney
• Provider Closed
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7
SM Service Guarantees
• generates feedback
SM Service Guarantees
SM Service Guarantees