4 service recovery

8/3/2019 4 Service Recovery

1/20

Unavailability of Service whenpromised.

Slow Service Delivery.

Poor Execution. Service Provider Being Rude.

Service Recovery

The action taken by anorganization in response to a Service

failure


2/20

Resolving Customer Problem Results:

Loyalty, Positive word of mouth & CustomerSatisfaction

No Service Recovery Results:

Switch/Exit or Negative Impact


3/20

Motive: Plan To Disappoint Customer

Return: Gain Even Greater Loyalty from

Them

Complexity:

- Expensive

- Rethink whether to buy again

Doing it Right The First Time


4/20

Types of Complainers

- Passive

- Voicers

- Irates

- Activist


5/20

Service Failure

Dissatisfaction

Complaint Action No Action

Complain

To Provider

-ve Word

of MouthThird Party

Action

Exit/

SwitchStay

Exit/Switch

Stay


6/20

Positive ConsequencesM

ay Occur Social Benefit

Personal Norms Support

For Compensation

High Risk, Expensive & Ego Involvement

Why People do not Complain?

Do not believe in Positive Consequences. Unaware about Complaining Process.

Waste of time & Effort or Self Blame : (EMOTIONFOCUSED COPING)


7/20


8/20

Interaction Fairness:

- Customers Expect to be treated politely, with

care & honesty.


9/20

Service Failure

Service Failure Handling

Customer Reaction to Recovery

Future Decision


10/20

Magnitude & Criticality of Failure

Customers Relationship

Individual Customers Attitude

Accumulation of Events


11/20

Fail- Safe your Service- Do it Right the FirstTime:

- TQM

- Poka Yokes

Welcome & Encourage Complaints:

- Satisfaction Surveys

- Lost Customer Research

- Critical Incidence

- Teaching Customers How to Complain

- Ex: Telecom Companies

- U.S Pizza & Car

Companies


12/20

Act Quickly:

- Quick Response

- Take Care of Problems on The FrontLine: Service Advisors

- Call Back Customers- Web Site of Co.

- Empower Employees- Wipro & Hutch

- Allow Customers to Solve their Own

Problems: FAQs


13/20

Treat Customers Fairly

Learn From Recovery Experience: US Pizza

Learn From Lost Customer: T.R SawneyMotors

Return to Doing It Right


14/20

Meaning :

A service guarantee is a marketing tool used by

service firms to reduce consumer risk perceptions,signal quality, differentiate a service offering, and

to institutionalize and professionalize their

internal management of customer complaint and

service recovery.


15/20

Single-attribute specific guarantee :

On key attribute of the service is covered by the guarantee.

Ex:Pizza Hut

Multi-attribute specific guarantee:

A few important attributes of the service are covered by the

guarantee.

Example:

1. A friendly, efficient check-in

2. A clean, comfortable room, where everything works

3. A friendly, efficient check-out


16/20

If we, in your opinion, do not deliver on this commitment, we

will give you $20 in cash. No question asked. It is your

interpretation.

Full-satisfaction guarantee : All aspects of the service are

covered by the guarantee. There are no exceptions.

Ex Lands End) If you are not completely satisfied with any

item you buy from us, at any time during your use of it, return itand we will refund your full purchase price. We mean every

word of it. Whatever. Whenever. Always. But to make sure this

is perfectly clear, weve decided to simplify it further.

GUARANTEED. Period.


17/20

Combined Guarantee : All aspects of the service are covered by

the full-satisfaction promise of the guarantee. Explicit minimum

performance standards on important attributes are included in

the guarantee to reduce uncertainty.

Datapro Information Services guarantees to deliver the report

on time, to high quality standards, and to the contents outlined

in this proposal.S

hould we fail to deliver according to thisguarantee, or should you be dissatisfied with any aspect of our

work, you can deduct any amount from the final payment which

is deemed as fair.


18/20

- Forces a Company to focus on its customers

- Sets Clear Standards for Organization

- Generates Relevant Feedback from customers

- Helps in Gaining Loyalty

- Reduces Risk

- Enhances EmployeeMoral & Loyalty


19/20

Characteristics of Effective Guarantees:

- Unconditional

-Meaningful

- Easy to Understand & Communicate

- Easy to Evoke & Collect

When to use (or not use) Service Guarantee?

- Existing Service Quality being Poor

- Guarantee Doesnt fit Companies Image:

Mercedes

- Service Quality Truly Being Uncontrollable:

Educational Institutes


20/20

- Customer Perceive Little Risk in Service: Local Bus

Service.

- Cost of the Service overweighs the Benefit

4 service recovery

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