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Addressing Service Breakdowns
- 2. what is a service breakdown? When the experience of the service falls below people’s expectations.
- 3. the expectation “Our goal is to make every flight a positive experience for customers.”
- 5. why we should address breakdowns
- 6. breakdowns affect business 90% of customers who are dissatisfied with service they received will not come back or buy again SOURCE: RESEARCH INSTITUTE OF AMERICA
- 7. breakdown = bad publicity Only 4% of unhappy customers bother to complain. For every complaint heard, 24 others are communicated to potential customers, but not to the company. SOURCE: RESEARCH INSTITUTE OF AMERICA
- 9. good recovery = loyalty Of the customers who register a complaint, between 54% and 70% will do business again with the organization if they receive a response to their complaint. That figure goes up to 95% if the customer feels that the complaint was resolved SOURCE: RESEARCH INSTITUTE OF AMERICA
- 11. when things go wrong how to address a breakdown
- 12. a good response from 20x200.c0m “I'm so sorry about the delay in shipping your order.” “We always want to make sure the prints are perfect before we ship them and it sometimes slows us down!” “I'm going to refund the shipping and handling fee you paid right now. ”
- 13. the basics 1. respond quickly 2. apologize 3. provide an explanation 4. offer a resolution
- 14. providing an explanation “You increase my rates by 60% and don’t even bother to explain why or give me a single reason to remain a customer?” ethicalbusinessbuilder.com
- 15. the resolution - what people expect The influence of service failure and service recovery on airline passengers’ relationships with domestic airlines: an exploratory study. P.G. Mostert, C.F. De Meyer & L.R.J. van Rensbur (2009)
- 16. the right resolution If the breakdown occurs due to mistakes or errors by the service personnel or external sources the recovery should be psychological – the employees need to apologize for the inconvenience. If the error however is due to errors in the service architecture the recovery effort needs to be tangible and the customer should be compensated. The service encounter: diagnosing favorable and unfavorable incidents. Bitner, Booms, Tetrault. (1990) via designforservice.wordpress.com
- 17. bonus: make it fun
- 19. what causes breakdowns? people’s expectations GAP people’s experience
- 20. what causes breakdowns? people’s expectations service activities by company people’s experience
- 21. what causes breakdowns? people’s expectations company vision people’s experience
- 22. what causes breakdowns? people’s expectations company vision service design 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 company vision service design service implementation people’s experience
- 25. what causes breakdowns? people’s expectations GAP company vision GAP service design GAP service implementation GAP people’s experience
- 26. the gaps model of service quality people’s expectations GAP company vision GAP service design GAP service implementation GAP people’s experience
- 27. seek feedback DROWNONLINE.COM
- 28. • 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
- 29. Feedback
- 30. the gaps model of service quality people’s expectations GAP company vision GAP service design GAP service implementation GAP people’s experience
- 31. make the vision tangible
- 32. University of Washington Medical Center Service Recovery Program
- 33. the gaps model of service quality people’s expectations GAP company vision GAP service design GAP service implementation GAP people’s experience
- 34. empower employees how many people does it take to fix my internet connection? 2 twitter reps 3 call center reps 2 technicians
- 35. “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
- 36. the gaps model of service quality people’s expectations GAP company vision GAP service design GAP service implementation GAP people’s experience
- 37. set the right expectations Feedback
- 39. design for transparency • Netflix example • wayfinding signage in restaurant MUY YUM, FLICKR
- 40. conclusion
- 41. 1. put the emphasis on people 2. design your organization to serve people
- 42. thank you.