the art of service recovery
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The Profitable Art of Service Recovery The Profitable Art of Service Recovery
Article presentation 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
Christopher W.L. Hart : Cambridge Massachusetts
James L. Heskett : HBS
And W. Earl Sasser Jr.: HBS
Published by Harvard Business Review July-August 1990
Summary 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
Introduction : Concepts & Findings
Measure the costs
Break the silence
Anticipate the need for recovery
Act Fast
Train employees & Empower FLE
Close the loop & Conclusion
Introduction : Concepts & Findings
Introduction : Concepts & Findings
Zero Defects doesn’t 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 can’t solve problems.
Zero Defects doesn’t 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 can’t solve problems.
Measure the Costs 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
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
Break the SilenceBreak 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.
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.
Anticipate needs for recovery
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
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
Act fast Act fast
Research : 11 people (Bad) Versus 6 people (good)
Learn the lesson
Fix the problem
Talk to the customer
For example :
Research : 11 people (Bad) Versus 6 people (good)
Learn the lesson
Fix the problem
Talk to the customer
For example :
Train employees & Empower FLE
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)
Do me another favor : Train FLE
Empowerment & Responsibility
Authority & Incentives
How is Training being carried out ? (Real life and Role play)
Close the loop & Conclusion Close the loop & Conclusion
Close the loop
Go to the end of the complaint
Conclusion : make it a culture
Close the loop
Go to the end of the complaint
Conclusion : make it a culture
Q&AQ&A