Addressing Service Breakdowns

addressingservice breakdownsbala chennupati@balchenn#ServiceBreakdowns

what is a service breakdown?When the experience of the service falls belowpeople’s expectations.

the expectation“Our goal is to make every flight a positive experience for customers.”

the experience

why we should address breakdowns

breakdowns affect business 90% of customers who are dissatisfied with service theyreceived will not come back or buy againSOURCE: RESEARCH INSTITUTE OF AMERICA

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

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

service recovery paradox

when things go wrong how to address a breakdown

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. ”

the basics1. respond quickly2. apologize3. provide an explanation4. offer a resolution

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

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)

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

bonus: make it fun

preventing breakdowns

what causes breakdowns? people’s expectations GAP people’s experience

what causes breakdowns? people’s expectations service activities by company people’s experience

what causes breakdowns? people’s expectations company vision people’s experience

what causes breakdowns? people’s expectations company vision service design people’s experience

what causes breakdowns? people’s expectations company vision service design service implementation people’s experience

what causes breakdowns? people’s expectations GAP company vision GAP service design GAP service implementation GAP people’s experience

the gaps model of service quality people’s expectations GAP company vision GAP service design GAP service implementation GAP people’s experience

seek feedback DROWNONLINE.COM

• 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

Feedback

make the vision tangible

University of Washington Medical Center Service Recovery Program

empower employeeshow many people does it take to fixmy internet connection? 2 twitter reps 3 call center reps 2 technicians

“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

set the right expectations Feedback

design for transparency• Netflix example• wayfinding signage in restaurant MUY YUM, FLICKR

conclusion

1. put the emphasis on people2. design your organization to serve people

thank you.

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Addressing Service Breakdowns

by balchenn on Mar 25, 2012

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