Service Recovery

Presented By: Atish(102004) Hardik(102015) Tarun(102022) Ritesh (102035)

...customers now take the basics for granted and increasingly want a company to desire to help them [and] to treat them in a personal, caring way.
By: Lord Marshall (Chairman of British Airways Plc)

Service recovery refers to the actions taken by the organization in response to a service failure for reasons like: Non-availability when promised Delivered late or too slowly The outcome may be incorrect or poorly executed Employees may be rude or uncaring

RECOVERY PARADOX

Customers who are dissatisfied, but experience a high level of excellent service recovery, may ultimately be even more satisfied and more likely to repurchase than those who were satisfied in the first place.

WANT OF UNHAPPY CUSTOMER

What they were promised Personal attention A decent apology Not to be made to feel that they are the cause of the problem

Causes Behind Service Switching

Pricing
High Price Price Increases Unfair Pricing Deceptive Pricing

Response to Service Failure

Negative Response No Response Reluctant Response

Inconvenience
Location/Hours Wait for Appointment Wait for Service

Competition

Core Service Failure

Service Mistakes Billing Errors Service Catastrophe

Service Switching Behavior

Found Better Service

Ethical Problems
Cheat Hard Sell Unsafe Conflict of Interest

Service Encounter Failures

Uncaring Impolite Unresponsive Unknowledgeable

Involuntary Switching
Customer Moved Provider Closed

Source: Sue Keaveney, Customer Switching Behavior in Service Industries: An Exploratory Study, Journal of Marketing, April, 1995, pp. 71-82.

Types of service failure

System failure
1.
2. 3.

Unavailable service Unreasonable slow service Other core service failure

Customer needs and request

1. 2. 3.

Special needs Customer preferences Customer error

Types of service failure

Unprompted / unsolicited employee action

1.
2. 3. 4. 5.

Level of attention Unusual action Cultural norms Gestalt Adverse condition

Problematic customer
1. 2. 3. 4.

Drunkenness Verbal and physical abuse Breaking company policies Uncooperative customer

Types of complain

Instrumental complaints Non-instrumental complaints Ostensive complaints Reflexive complaints

TARP MODEL FOR COMPLAIN HANDLING

CUSTOMER PURCHASE

ENCOUNTER PROBLEM

NO PROBLEM

DOES NOT COMPLAIN

COMPLAIN

SATISFIED
DISSATISFIED SATISFIED

ENGAGE IN NEGATIVE WORD OF MOUTH

DOES NOT REPURCHASE

REPURCHASE ENGAGES IN POSITIVE WORD OF MOUTH

REDUCE SELL TO NEW CUSTOMER

REDUCE SELL TO EXISTING CUSTOMER

SALE TO EXISTING CUSTOMER

NEW CUSTOMER

Art of service recovery

Measure the costs Actively encourage complaints Anticipate needs for recovery Respond quickly Train employees Empower the front line Close the loop

PROCESS OF HANDLING DISSATISFIED CUSTOMER

Step 1

Apology for or acknowledge the fact that the customer is experiencing an inconvenience

Step 2

Listen empathies and ask open question Listening ensure about your concern about the customer

Step 3

Offer a fair fix to the problem Demonstrate sensitivity and concern the customer will respond with like respect

Step 4

Offer some value added atonement for the inconvenience or injury A value added atonement will keep the customer with you

Step 5

Keep your promises Fulfill commitment

Step 6

Follow up It ensure that implemented service recovery was satisfactory or not

Service Recovery Strategies

Service Recovery Strategies

Evaluating recovery efforts

Distributive justice Procedural justice Interactional justice

THANK YOU