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Service recovery

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  • Title Slide
  • The customer’s experience can be mapped through a service sequence. This is an abstract map showing how the perceived quality of service can be affected by the different acts. The customer may have had some great service (act 4) but the final two acts will have left the impression of poor service.
  • Customer expectations are set in a number of ways, not all of which the company has control over.It is important to realise that marketing is only part of the story.Past experience, reputation, and what other customers say strongly influences the expectations.In this way the people who deliver the service have a role to play in setting expectations around the quality through previous service situations.
  • Title Slide
  • Customer expectations are set in a number of ways, not all of which the company has control over.It is important to realise that marketing is only part of the story.Past experience, reputation, and what other customers say strongly influences the expectations.In this way the people who deliver the service have a role to play in setting expectations around the quality through previous service situations.
  • Customer expectations are set in a number of ways, not all of which the company has control over.It is important to realise that marketing is only part of the story.Past experience, reputation, and what other customers say strongly influences the expectations.In this way the people who deliver the service have a role to play in setting expectations around the quality through previous service situations.
  • Because expectations are set by previous experiences of the service, continually delighting the customer can create a situation where the customer’s expectations rise. If the last three times you were upgraded to business class, you will experience disappointment if it doesn’t happy on the fourth time.
  • Title Slide
  • The customer’s experience can be mapped through a service sequence. This is an abstract map showing how the perceived quality of service can be affected by the different acts. The customer may have had some great service (act 4) but the final two acts will have left the impression of poor service.
  • The customer’s experience can be mapped through a service sequence. This is an abstract map showing how the perceived quality of service can be affected by the different acts. The customer may have had some great service (act 4) but the final two acts will have left the impression of poor service.
  • The customer’s experience can be mapped through a service sequence. This is an abstract map showing how the perceived quality of service can be affected by the different acts. The customer may have had some great service (act 4) but the final two acts will have left the impression of poor service.
  • The primary purpose of the service recovery process is to resolve the service failure in a way that maintains the customer perception of a quality service. A well designed service recovery process should also be capable of identifying service failures, as well as providing information to prevent re-occurrence of the problem that caused the service failure.
  • Part of the service logic is that service organisations are involved in promise management – meaning that service failures represent promises not kept. It is therefore unsurprising that the concept of justice or fairness is important to customers when they are involved in a service recovery situation. There are three basic forms of justice, distributive, procedural and interactional. Distributive justice is concerned with the balancing the size and impact of the failure with the degree of compensation or recompense provided during the recovery process. The perception of the customer is the key factor in determining whether the customer feels that the compensation is appropriate for the size of the service failure. At the lower end, a service failure involving short-changing may only require the providing of the correct change and an apology. At the other end of the scale a customer may expect that accommodation charges and meals are covered by an airline that has made an error in flight bookings. Procedural justice is concerned with the consistency and transparency of the process. This includes whether the customer is being kept informed, the degree to which the customer can affect the outcome, and how the customer may be treated in relation to other customers with a similar complaint. As with distributive justice, the perception of the customer is key to determining whether there has been the appropriate procedural justice. Interactional justice is concerned with whether the behaviour of the service provider and the manner in which the matter is treated is appropriate for the customer. Again, perception is important and a significant inconvenience such as a missed flight for a wedding would warrant a significant level of concern on the part of the service provider.
  • The customer’s requirement for distributive justice means that compensation is often a key component of the service recovery process. Organisations may be able to optimise the results of service recovery attempts by matching the type of compensation to the type of service. Service providers providing non-essential luxury items may find that a free gift provides better results than monetary compensation, whereas those providers offering a basic and essential service (such as power and water) may find monetary compensation is more appropriate. Good communications is important for a service recovery process. The communications needs to be frequent, transparent and trustworthy. If a service provider has failed to meet a customer’s expectations, any loss of credibility through providing misleading information will be perceived as an additional service failure. The communications also need to accept feedback from the customer and provide the customer some say in the recovery process. These elements ensure that the customer’s requirement for procedural justice is met. Many customer complaints are generated as a result of negative emotions arising from the service failure, meaning that negative emotions are likely to be present in the service recovery process. A service provider needs to have well trained staff who are able to manage these negative emotions including the range of emotions that different customers may bring. Staff must be trained not to mirror any of the customer’s negative emotions.
  • Part of the service logic is that service organisations are involved in promise management – meaning that service failures represent promises not kept. It is therefore unsurprising that the concept of justice or fairness is important to customers when they are involved in a service recovery situation. There are three basic forms of justice, distributive, procedural and interactional. Distributive justice is concerned with the balancing the size and impact of the failure with the degree of compensation or recompense provided during the recovery process. The perception of the customer is the key factor in determining whether the customer feels that the compensation is appropriate for the size of the service failure. At the lower end, a service failure involving short-changing may only require the providing of the correct change and an apology. At the other end of the scale a customer may expect that accommodation charges and meals are covered by an airline that has made an error in flight bookings. Procedural justice is concerned with the consistency and transparency of the process. This includes whether the customer is being kept informed, the degree to which the customer can affect the outcome, and how the customer may be treated in relation to other customers with a similar complaint. As with distributive justice, the perception of the customer is key to determining whether there has been the appropriate procedural justice. Interactional justice is concerned with whether the behaviour of the service provider and the manner in which the matter is treated is appropriate for the customer. Again, perception is important and a significant inconvenience such as a missed flight for a wedding would warrant a significant level of concern on the part of the service provider.
  • Part of the service logic is that service organisations are involved in promise management – meaning that service failures represent promises not kept. It is therefore unsurprising that the concept of justice or fairness is important to customers when they are involved in a service recovery situation. There are three basic forms of justice, distributive, procedural and interactional. Distributive justice is concerned with the balancing the size and impact of the failure with the degree of compensation or recompense provided during the recovery process. The perception of the customer is the key factor in determining whether the customer feels that the compensation is appropriate for the size of the service failure. At the lower end, a service failure involving short-changing may only require the providing of the correct change and an apology. At the other end of the scale a customer may expect that accommodation charges and meals are covered by an airline that has made an error in flight bookings. Procedural justice is concerned with the consistency and transparency of the process. This includes whether the customer is being kept informed, the degree to which the customer can affect the outcome, and how the customer may be treated in relation to other customers with a similar complaint. As with distributive justice, the perception of the customer is key to determining whether there has been the appropriate procedural justice. Interactional justice is concerned with whether the behaviour of the service provider and the manner in which the matter is treated is appropriate for the customer. Again, perception is important and a significant inconvenience such as a missed flight for a wedding would warrant a significant level of concern on the part of the service provider.
  • Transcript

    • 1. Service Recovery
    • 2. Service Failure Service Failure isthe process of NOT keeping promises Above expectation (great service) 4 Expected 2 Zone of Service 3 Tolerance 5 1 Below 6 expectation 7 8 9 (poor service)
    • 3. Service Failure – Two Topics Perception & Tolerance Zone of
    • 4. Part One: Causes
    • 5. Service Failure - Causes The facilities and environment The expectations Actions (& The systems inactions) of staff 4 2 3The process 5 1 6 7 8 9 Actions of the Actions of other customer The equipment customers
    • 6. Service Failure - Causes The facilities and environment The expectations Actions (& The systems inactions) of staffThe process The Service Provider Becomes Responsible for Managing Actions of the Actions of other customer The equipment customers
    • 7. Finding Causes – Gap Analysis Management perception gap Quality Market comms specification gap Marketing/ gap Sales Perceived service quality gap Service delivery gap Delivery Customers Keeping PromisesSource: Parasuraman, Zeithaml, Berry, SERVQUAL: a multi-item scale for measuring consumer perceptions of service quality
    • 8. Part Two: Responses
    • 9. Responses Above expectation (great service) 4 Expected 2 Zone of Service 3 Tolerance 5 1 Below 6 expectation 7 8 9 (poor service) Complain Put up with itGOOD Customers Have BAD Choices Leave
    • 10. Complaining is Good?THE LOGIC:1. The Perception of the Customer Determines Service Quality2. Perception is intangible and may be invisible3. Complaining makes it visible4. Unless it is visible the Service Provider cannot respond
    • 11. Customer ChoicesGOOD Complain THE SERVICE Put up with it PROVIDER CAN ONLY RESPOND IF THEY BAD KNOW ABVOUT THE Leave FAILUREWhat Happens How do Customers Decide What Happens• Opportunity to • Bond (e.g. • Little opportunity to influence by service contracts, knowledge influence by service provider etc.) provider• Opportunity to learn • Strength of • Customers spread bad and adjust service dissatisfaction word of mouth • Switching costs • Customers left are • Willingness to complain gone for good • Significance of service • Past relationship Service Recovery Process
    • 12. Service RecoveryService Recovery:is the process for Above expectationresolving Failures (great service) 4 7 8 9that maintains the Expected 2 3 Zone of Service Toleranceperception of quality 5 1 Below 6 expectation 7 8 9 (poor service) Service Recovery Paradox: Can Service Recovery increase satisfaction with service to levels above normal service?
    • 13. The Concept of Justice A Service Failure represents an expectation not met, for a customer this is like a BROKEN PROMISE The customer wants to see JUSTICE Distributive Procedural Interactional Size of Process is Behaviour of recompense consistent and service providermatches degree of transparent appropriate for failure degree of failure
    • 14. The Implications of Justice Distributive Procedural Interactional Size of Process is Behaviour of recompense consistent and service providermatches degree of transparent appropriate for failure degree of failure Basis of Organisational response Appropriate Frequent, trustwort Appropriately compensation hy communication trained staff Potential customer issues Opportunistic Squeaky wheel Unrealistic claims syndrome expectations
    • 15. Service Recovery Concepts• Service Recovery best done in service sequence and not done later• Service Recovery best done by the groups involved in the Service Failure• Service Recovery best to exceed service expectation in some way• Cost of Service Recovery may be lower than cost to replace customer
    • 16. Final Word on Service Recovery• Resolve the CAUSE of the Service Failure• This will improve the quality of the service• This will reduce the time and costs spent in service recovery

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