Unavailability of Service when promised.  Slow Service Delivery.  Poor Execution.  Service Provider Being Rude.

Service Recovery
The action taken by an organization in response to a Service failure

Resolving Customer Problem Results: Loyalty, Positive word of mouth & Customer Satisfaction

No Service Recovery Results: Switch/Exit or Negative Impact

 

Motive: Return: Them

Plan To Disappoint Customer Gain Even Greater Loyalty from

Complexity: - Expensive - Rethink whether to buy again

Doing it Right The First Time

Types of Complainers - Passive - Voicers - Irates - Activist

Service Failure

Dissatisfaction

Complaint Action

No Action

Complain To Provider

-ve Word of Mouth

Third Party Action Stay

Exit/ Switch

Stay

Exit/ Switch

    

Positive Consequences May 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 : (EMOTION FOCUSED COPING)

Outcome Fairness: Punishment Should Fit the Crime Ex: China Inn Procedural Fairness: Fairness in Policies, Rules, Timeliness Complaint Process & Absence of Harasses - Ex: Airtel

Interaction Fairness:

- Customers Expect to be treated politely, with care & honesty.

Service Failure

Service Failure Handling

Customer Reaction to Recovery

Future Decision

Magnitude & Criticality of Failure Customers Relationship Individual Customers Attitude Accumulation of Events

Fail- Safe your Service- Do it Right the First Time: - TQM - Poka Yokes Welcome & Encourage Complaints: - Satisfaction Surveys - U.S Pizza & Car - Lost Customer Research Companies - Critical Incidence - Teaching Customers How to Complain - Ex: Telecom Companies

Act Quickly: - Quick Response - Take Care of Problems on The Front Line: Service Advisors - Call Back Customers- Web Site of Co. - Empower Employees- Wipro & Hutch - Allow Customers to Solve their Own Problems: FAQs

  

Treat Customers Fairly Learn From Recovery Experience: US Pizza Learn From Lost Customer: T.R Sawney Motors Return to Doing It Right

 

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.

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. 2. 3.

A friendly, efficient check-in A clean, comfortable room, where everything works A friendly, efficient check-out

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 it and 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.

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. Should we fail to deliver according to this guarantee, 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.

- 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 Employee Moral & Loyalty

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

- Customer Perceive Little Risk in Service: Local Bus Service. - Cost of the Service overweighs the Benefit