the art of service recovery

Download The Art Of Service Recovery

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  • 1. The Profitable Artof Service Recovery

2. Article presentation

  • Christopher W.L. Hart : Cambridge Massachusetts
  • James L. Heskett : HBS
  • And W. Earl Sasser Jr.: HBS
  • Published by Harvard Business Review July-August 1990

3. 4. Summary

  • Introduction : Concepts & Findings
  • Measure the costs
  • Break the silence
  • Anticipate the need for recovery
  • Act Fast
  • Train employees & Empower FLE
  • Close the loop & Conclusion

5. Introduction : Concepts & Findings

  • Zero Defects doesnt exist in Service Business
  • All of us have experienced service defect
  • But still the topic is tabou
  • Front Line Employees are unprepared
  • Companies have made idiot-proof systems. But idiots cant solve problems.

6. Measure the Costs

  • Managers are trained to get new customers not to keep them
  • Managers underestimates the profits of a departing/unhappy customer
  • The costs to keep a customer (A)
  • The costs to replace a customer (B)
  • The truth is that A is (always) less than B

7. Break the Silence

  • Every customer complaint is an opportunity
  • Listen to customers complaints
  • Make it easy for customers to complain : Hot lines, toll free, boxes etc.
  • but do it right.

8. Anticipate needs for recovery

  • Know where errors are in the company
  • Know the product life cycle : When errors occur
  • Identify the FLE in contact with customers
  • File and do some statistics on complaints

9. Act fast

  • Research : 11 people (Bad) Versus 6 people (good)
  • Learn the lesson
  • Fix the problem
  • Talk to the customer
  • For example :

10. Train employees & Empower FLE

  • Do me another favor : Train FLE
  • Empowerment & Responsibility
  • Authority & Incentives
  • How is Training being carried out ? (Real life and Role play)

11. Close the loop & Conclusion

  • Close the loop
  • Go to the end of the complaint
  • Conclusion : make it a culture

12. Q&A