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Understanding Service Recovery: Strategies to Overcome Service Breakdowns and Regain Customer Trust

Service recovery involves resolving customer issues and restoring trust after a service breakdown. A service breakdown occurs when the delivered product or service does not meet customer expectations, which can be due to various factors. Recognizing causes such as inadequate communication, lack of knowledge, and unprofessional treatment is essential. To prevent customer dissatisfaction, organizations must adopt strategies like empathizing with customers and exceeding expectations. Effective recovery includes prompt apologies, compassionate action, appropriate compensation, and diligent follow-up while overcoming potential roadblocks.

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Understanding Service Recovery: Strategies to Overcome Service Breakdowns and Regain Customer Trust

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  1. CHAPTER THIRTEEN Service Recovery

  2. LEARNING OBJECTIVES • Define a service breakdown • Discuss causes of breakdowns • Determine why customers leave • Identify strategies to prevent customer dissatisfaction • Implement frontline service recovery • Spot roadblocks to service recovery

  3. Service Recoveryoccurs when an organization or service provider is able to solve a customer problem, make restitution, and regain trust following a breakdown in service delivery.

  4. Service Breakdownshappen whenever the product or service delivered fails to meet customer expectations.

  5. SERVICE BREAKDOWNS • Product or service failed • Promise not kept • Deadline missed • Service not adequate • Provider lacks knowledge or skills • Customer inconvenienced • Customer gets runaround • Unprofessional treatment

  6. CAUSES OF BREAKDOWNS(Organizational Factors) • Human resources • Organization and structure • Processes and procedures • Product and service designand delivery • Internal communications • Technological support systems • Standards

  7. CAUSES OF BREAKDOWNS(Employee Factors) • Communication skills • Knowledge • Attitude • Technical skills

  8. CAUSES OF BREAKDOWNS(Customer Factors) • Failure to use information correctly • Failure to follow through

  9. REASONS FOR DEFECTION • Poor service or complacency • Inappropriate complaint resolution • Unmet needs • Unfair treatment • Inadequate systems

  10. PREVENTION STRATEGIES • Think like a customer • Pamper customers • Respect customers • Focus customers • Exceed expectations

  11. IMPLEMENTING RECOVERY • Apologize! Apologize! Apologize! • Take immediate action • Show compassion • Provide compensation • Conduct follow-up

  12. ROADBLOCKS TO SERVICE RECOVERY • Now listening • Lack of respect • Poor/inadequate communication • Inadequate or outdated materials/ equipment • Lack of training • Work conflicts

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