4 service recovery
TRANSCRIPT
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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
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Resolving Customer Problem Results:
Loyalty, Positive word of mouth & CustomerSatisfaction
No Service Recovery Results:
Switch/Exit or Negative Impact
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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
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Types of Complainers
- Passive
- Voicers
- Irates
- Activist
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Service Failure
Dissatisfaction
Complaint Action No Action
Complain
To Provider
-ve Word
of MouthThird Party
Action
Exit/
SwitchStay
Exit/Switch
Stay
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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)
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Interaction Fairness:
- Customers Expect to be treated politely, with
care & honesty.
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Service Failure
Service Failure Handling
Customer Reaction to Recovery
Future Decision
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Magnitude & Criticality of Failure
Customers Relationship
Individual Customers Attitude
Accumulation of Events
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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
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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
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Treat Customers Fairly
Learn From Recovery Experience: US Pizza
Learn From Lost Customer: T.R SawneyMotors
Return to Doing It Right
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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.
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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
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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.
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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.
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- 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
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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
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- Customer Perceive Little Risk in Service: Local Bus
Service.
- Cost of the Service overweighs the Benefit