Addressing Service Breakdowns

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Slides from my IA Summit talk. March 25, 2012.

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Addressing Service Breakdowns

  1. addressingservice breakdownsbala chennupati@balchenn#ServiceBreakdowns
  2. what is a service breakdown?When the experience of the service falls belowpeople’s expectations.
  3. the expectation“Our goal is to make every flight a positive experience for customers.”
  4. the experience
  5. why we should address breakdowns
  6. breakdowns affect business 90% of customers who are dissatisfied with service theyreceived will not come back or buy againSOURCE: RESEARCH INSTITUTE OF AMERICA
  7. breakdown = bad publicityOnly 4% of unhappy customers bother to complain.For every complaint heard, 24 others are communicatedto potential customers, but not to the company.SOURCE: RESEARCH INSTITUTE OF AMERICA
  8. good recovery = loyaltyOf the customers who register a complaint, between54% and 70% will do business again with theorganization if they receive a response to theircomplaint.That figure goes up to 95% if the customer feels thatthe complaint was resolvedSOURCE: RESEARCH INSTITUTE OF AMERICA
  9. service recovery paradox
  10. when things go wrong how to address a breakdown
  11. a good response from 20x200.c0m“Im so sorry about the delay in shipping your order.”“We always want to make sure the prints are perfectbefore we ship them and it sometimes slows usdown!”“Im going to refund the shipping and handling feeyou paid right now. ”
  12. the basics1. respond quickly2. apologize3. provide an explanation4. offer a resolution
  13. providing an explanation“You increase my rates by 60% and don’t evenbother to explain why or give me a single reason toremain a customer?”ethicalbusinessbuilder.com
  14. the resolution - what people expectThe influence of service failure and service recovery on airline passengers’ relationships with domesticairlines: an exploratory study. P.G. Mostert, C.F. De Meyer & L.R.J. van Rensbur (2009)
  15. the right resolution If the breakdown occurs due to mistakes or errors by theservice personnel or external sources the recovery shouldbe psychological – the employees need to apologize forthe inconvenience.If the error however is due to errors in the servicearchitecture the recovery effort needs to be tangible andthe customer should be compensated.The service encounter: diagnosing favorable and unfavorable incidents.Bitner, Booms, Tetrault. (1990)via designforservice.wordpress.com
  16. bonus: make it fun
  17. preventing breakdowns
  18. what causes breakdowns? people’s expectations GAP people’s experience
  19. what causes breakdowns? people’s expectations service activities by company people’s experience
  20. what causes breakdowns? people’s expectations company vision people’s experience
  21. what causes breakdowns? people’s expectations company vision service design people’s experience
  22. what causes breakdowns? people’s expectations company vision service design service implementation people’s experience
  23. what causes breakdowns? people’s expectations company vision service design service implementation people’s experience
  24. what causes breakdowns? people’s expectations GAP company vision GAP service design GAP service implementation GAP people’s experience
  25. the gaps model of service quality people’s expectations GAP company vision GAP service design GAP service implementation GAP people’s experience
  26. seek feedback DROWNONLINE.COM
  27. • Get periodic feedback Feedback http://www.nytimes.com/2008/10/12/magazi ne/12tipping‐ t.html?_r=1&hp=&adxnnl=1&pagewanted=1& adxnnlx=1330372820‐ CG9Z1Vopw96ds6+ZaFWL1g
  28. Feedback
  29. the gaps model of service quality people’s expectations GAP company vision GAP service design GAP service implementation GAP people’s experience
  30. make the vision tangible
  31. University of Washington Medical Center Service Recovery Program
  32. the gaps model of service quality people’s expectations GAP company vision GAP service design GAP service implementation GAP people’s experience
  33. empower employeeshow many people does it take to fixmy internet connection? 2 twitter reps 3 call center reps 2 technicians
  34. “Too often companies desire to do everything well, and they create a kind of exhausted mediocrity. Employees can’t do everything well: When you optimize a system to be both best in class at speed and best at thoroughness, you’re going to wind up being average at both.” Frances Frei, author of Uncommon Service
  35. the gaps model of service quality people’s expectations GAP company vision GAP service design GAP service implementation GAP people’s experience
  36. set the right expectations Feedback
  37. design for transparency• Netflix example• wayfinding signage in restaurant MUY YUM, FLICKR
  38. conclusion
  39. 1. put the emphasis on people2. design your organization to serve people
  40. thank you.
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