Understanding Service Failure and Service Recovery, Case Study based on FedEx

Presented By Rahul S S Chawla, Chirag R Gandhi, Amrita PK Purkayastha, Auster Mascarenhas, N V S Sudheer, Bergeret Laure

Service Failure & Recovery

Sylvia s Expectations
Timely Delivery
Miss-sort

Forthcoming Notifications
No Intimation

Emergency Response Procedures

No Systems in Place

Empathetic CSR
No Empathy or Aid provided

Service Recovery Procedures

Actual
Non-Empathetic CSR No Notification Next Day Delivery

Stated
Notifications in Place Expedite Same Day

Future Initiatives
Connect Customers to local station Potential of Small Aircraft Megatracker

Customer s Response to Service Failure

Importance of Service Failure
Personal Relevance Critical Consequences of Failure High Ego Involvement in Service

Type of Customer
Voicer

Why ?
Communication Lines Open Feedback Useful Make Good Better

Customer s Recovery Expectations

Understanding & Accountability
Service to be Fixed Explanation Assurance of Non-Repetition Free Product Re-Imbursement Opportunity to Vent Frustration ? Apology ? Thank You

Outcome Fairness
To Decrease Negative Emotional Response to Service Failure

Procedural Fairness
Access to Complaint Procedure Organization's Adaptability to Complaint Procedure

Interactional Fairness
Empathy Lack of Training and Latitude

Switching Versus Staying

Reasons For Switching
Pricing Competition Ethical Issue Involuntary Switching Inconvenience Core Service Failure Service Encounter Failure Response to Service Failure

Magnitude and Criticality of Service Failure Type of Relationship

True / Pseudo / First Time

Service Recovery Strategies

Make Service Failsafe Encourage & Track Complaints Act Quickly Provide Adequate Explanation Treat Customers Fairly Cultivate Relationships with Customers Learn from Recovery Experiences Learn From Lost Customers

Analysis Of Service Guarantee

Type of Guarantee
Unconditional Service Attribute Guarantee

Attributes Of Guarantee
Unconditional Easy to Invoke Meaningful Easy to Understand

Benefits Of Guarantee
Focus on customers Sets Standards for Organization Immediate and Relevant Feedback for Customers Instant Opportunity to recover Information Generated can be Tracked and Integrated into Improvement Efforts Guarantee Reduces Sense of Risk and Builds Confidence