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Service Recovery by Operational Excellence Consulting

When things go wrong, customer expectations tend to drop while fear and anger rise. Many service providers tend to avoid the issue, hiding from the damage, minimizing cost and shifting the blame to others. With the right approach and understanding, you can regain customer satisfaction and loyalty and make your organization even stronger.

In this training powerpoint, you can educate customer service employees or new hires on the key concepts and principles of service recovery, learn how to handle difficult customers and acquire the five-step service recovery skill.  


Learning Objectives

1. Understand the key concepts of service recovery
2. Understand the principles of effective service recovery systems
3. Understand why problems are opportunities
4. Acquire knowledge on how to make it easy for customers to complain
5. Acquire knowledge on how to handle difficult customers
6. Apply the five steps of service recovery skill


Contents

1. Introduction to Service Recovery
2. Principles of Effective Service Recovery Systems
3. Problems are Opportunities
4. Making it Easy for Customers to Complain
5. Handling Difficult Customers
6. Five Steps of Service Recovery

To download this complete presentation, visit: http://www.oeconsulting.com.sg

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Service Recovery by Operational Excellence Consulting

  1. 1. © Operational Excellence Consulting. All rights reserved. © Operational Excellence Consulting. All rights reserved. Service Recovery
  2. 2. © Operational Excellence Consulting. All rights reserved. 2 Learning Objectives By the end of this program, you should be able to: • Understand the key concepts of service recovery • Understand the principles of effective service recovery systems • Understand why problems are opportunities • Acquire knowledge on how to make it easy for customers to complain • Acquire knowledge on how to handle difficult customers • Apply the five steps of service recovery Copyrights of all the pictures used in this presentation are held by their respective owners.
  3. 3. © Operational Excellence Consulting. All rights reserved. 3 Contents 1. Introduction to Service Recovery 2. Principles of Effective Service Recovery Systems 3. Problems are Opportunities 4. Making it Easy for Customers to Complain 5. Handling Difficult Customers 6. Five Steps of Service Recovery NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: http://www.oeconsulting.com.sg
  4. 4. © Operational Excellence Consulting. All rights reserved. 4 Introduction • It is inevitable that things will go wrong • When this happens, customer expectations tend to drop while fear and anger rise • Many service providers tend to run away, hiding from the damage, minimizing cost and shifting the blame to others • With the right tools and understanding, you can regain customer confidence and make your organization even stronger
  5. 5. © Operational Excellence Consulting. All rights reserved. 5 Customer Response Categories to Service Failure Service Encounter Is Unsatisfactory Take No Action Take Some Form of Private Action Take Some Form of Public Action Take Legal Action to Seek Redress Complain to a Third Party Complain to the Service Firm Negative Word of Mouth Defect (switch provider) Any One or a Combination of These Responses Is Possible
  6. 6. © Operational Excellence Consulting. All rights reserved. 6 Why Customers Get Angry • Did not get what was promised • Got something and it did not work correctly • Service was slow or sloppy • Were treated rudely or with indifference
  7. 7. © Operational Excellence Consulting. All rights reserved. 7 What is Service Recovery? • Service recovery is the action a service provider takes in response to service failure • It is a process of returning dissatisfied customers to a state of satisfaction so as to promote customer retention
  8. 8. © Operational Excellence Consulting. All rights reserved. 8 What Does Service Recovery Involve? • Solving the customer’s problem quickly and fairly • Offering the customer some kind of compensation • Following up to assure that the customer is satisfied • Continuous improvement
  9. 9. © Operational Excellence Consulting. All rights reserved. 9 Benefits of Service Recovery • Positive influence on customer satisfaction • Improves word-of-mouth behavior • Builds customer loyalty • Increase customer profitability • Provides organizational learning
  10. 10. © Operational Excellence Consulting. All rights reserved. 10 Common service recovery mistakes 1. Managers disregard evidence that shows how service recovery provides a significant financial return 2. Companies do not invest enough in actions that would prevent service issues 3. Customer service employees fail to display good attitudes 4. Organizations fail to make it easy for customers to complain or give feedback
  11. 11. © Operational Excellence Consulting. All rights reserved. “Your most unhappy customers are your greatest source of learning.” - Bill Gates
  12. 12. © Operational Excellence Consulting. All rights reserved. 12 Principles of effective service recovery systems • Make it easy for customers to give feedback • Service recovery should be proactive • Recovery procedures need to be planned • Recovery skills must be taught • Recovery requires empowered employees • Providing service guarantees
  13. 13. © Operational Excellence Consulting. All rights reserved. 13 Components of an effective service recovery system Do the Job Right the First Time Effective Complaint Handling Identify Service Complaints Resolve Complaints Effectively Learn from the Recovery Experience Increased Satisfaction & Loyalty  Conduct Root Cause Analysis  Develop Effective System and Training in Complaints Handling  Conduct Research  Monitor Complaints  Develop “Complaints as Opportunity Culture” Close the Loop via Feedback + =
  14. 14. © Operational Excellence Consulting. All rights reserved. “Failure is success, if we can learn from it.” - Malcolm Forbes
  15. 15. © Operational Excellence Consulting. All rights reserved. 15 Common customer complaints… • Wrong information • Poor customer service attitude • Overpricing • Lack of adequate information • Delays • Unresponsiveness of service providers
  16. 16. © Operational Excellence Consulting. All rights reserved. 16 Problems can be good for you! • Identify where your procedures are a pain in the neck and need to be simplified • Reveal information that is lacking, erroneous or out of date
  17. 17. © Operational Excellence Consulting. All rights reserved. 17 Problems can be good for you! • Identify staff who need more training or closer supervision • Get important news straight to the boss’s desk (complaints have a way of getting noticed)
  18. 18. © Operational Excellence Consulting. All rights reserved. “One of the surest signs of a bad or declining relationship with a customer is the absence of complaints. Nobody is ever that satisfied, especially over an extended period of time.” - Theodore Levitt
  19. 19. © Operational Excellence Consulting. All rights reserved. 19 Make it easy for customers to complain • Provide comment cards at key points of customer contact  Put the collection box in plain view  Print a statement on the cards expressing your genuine appreciation for customer feedback, promising a speedy reply
  20. 20. © Operational Excellence Consulting. All rights reserved. 20 Make it easy for customers to complain • Welcome feedback on your website  Make it easy for customers and visitors to send you an email message  Do not require them to fill out a detailed database before giving you a piece of their mind
  21. 21. © Operational Excellence Consulting. All rights reserved. 21 Exercise: Your personal service experience 1. Think about the last time you experienced a less-than-satisfactory service experience. a) Did you complain? Why? b) If you did not complain, explain why not. Time: 10 mins
  22. 22. © Operational Excellence Consulting. All rights reserved. “When everything seems to be going against you, remember that the airplane takes off against the wind, not with it.” - Henry Ford
  23. 23. © Operational Excellence Consulting. All rights reserved. 23 Handling Difficult Customers • Difficult customers are those that fall outside the comfort zone • There are three categories of difficult customers: 1. Indecisive customers 2. Insistent (demanding) customers 3. Irate (angry) customers
  24. 24. © Operational Excellence Consulting. All rights reserved. 24 Five Steps of Service Recovery The five steps of service recovery skill are designed to help you: 1. Solve a problem 2. Restore the customer’s comfort
  25. 25. © Operational Excellence Consulting. All rights reserved. 25 5-Step Service Recovery Skill 1. ACKNOWLEDGE the situation and the discomfort 2. APOLOGIZE for the discomfort 3. ACCEPT responsibility for helping the customer 4. ADJUST to solve the problem 5. ASSURE the problem has been solved
  26. 26. © Operational Excellence Consulting. All rights reserved. 26 Exercise: Recovering from a complaint Instructions: 1. Identify a complaint that you find difficult to handle. 2. Write out what you would say to the customer to:  Acknowledge the problem and the discomfort it is causing. Time: 10 mins
  27. 27. © Operational Excellence Consulting. All rights reserved. 27 Summary • It is inevitable that things will go wrong • Problems are opportunities for improvement • Make it easy for customers to complain and provide feedback • Five steps (A’s) of service recovery • Improve the product and/or service continuously to “do it right the first time!”
  28. 28. © Operational Excellence Consulting. All rights reserved. About Operational Excellence Consulting
  29. 29. © Operational Excellence Consulting. All rights reserved. 29 About Operational Excellence Consulting • Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. • The firm’s mission is to create business value for organizations through innovative operational excellence management training and consulting solutions. • OEC takes a unique “beyond the tools” approach to enable clients develop internal capabilities and cultural transformation to achieve sustainable world-class excellence and competitive advantage. For more information, please visit www.oeconsulting.com.sg
  30. 30. © Operational Excellence Consulting. All rights reserved. END OF PREVIEW To download this presentation, please visit: www.oeconsulting.com.sg
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When things go wrong, customer expectations tend to drop while fear and anger rise. Many service providers tend to avoid the issue, hiding from the damage, minimizing cost and shifting the blame to others. With the right approach and understanding, you can regain customer satisfaction and loyalty and make your organization even stronger. In this training powerpoint, you can educate customer service employees or new hires on the key concepts and principles of service recovery, learn how to handle difficult customers and acquire the five-step service recovery skill.   Learning Objectives 1. Understand the key concepts of service recovery 2. Understand the principles of effective service recovery systems 3. Understand why problems are opportunities 4. Acquire knowledge on how to make it easy for customers to complain 5. Acquire knowledge on how to handle difficult customers 6. Apply the five steps of service recovery skill ​ Contents 1. Introduction to Service Recovery 2. Principles of Effective Service Recovery Systems 3. Problems are Opportunities 4. Making it Easy for Customers to Complain 5. Handling Difficult Customers 6. Five Steps of Service Recovery To download this complete presentation, visit: http://www.oeconsulting.com.sg

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