This document discusses the key elements of an effective service strategy: service reliability, service surprise, service recovery, and service fairness. It defines each element and provides examples. Some key steps in developing a service strategy are determining important customer expectations and competitor vulnerabilities, assessing a company's service capabilities, and creating a strategy that addresses customer needs and fits the company's abilities. An effective service strategy focuses on keeping promises, exceeding expectations through unexpected extras, resolving issues to regain customer trust, and treating customers ethically.

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Customer
Service
Strategy

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Steps in Identifying
A Service Strategy
• Determine the most important service
attributes for meeting and exceeding
customers’ expectations.
• Determine the most important service
attributes on which competitors are
most vulnerable.

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• Determine existing and potential service
capabilities of our company
• Develop a service strategy that
addresses important, enduring customer
needs, exploits competitor vulnerabilities,
and fits our company’s capabilities and
potential
Steps in Identifying
A Service Strategy

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Four Core
Elements of
Service Strategy
Service Reliability
Service Surprise
Service Recovery
Service Fairness

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Service Reliability
Reliability refers to accurate and dependable
service; it refers to keeping the service promise
Service Surprise
Surprise means finding ways to make the
customer say “wow, these folks are good”; it
comes from the unexpected extra.

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Service Recovery
Recovery involves regaining the customers’
confidence if the service is deficient; it means
standing behind the service
Service Fairness
Fairness requires a level playing field for
company and customer; business is conducted
in an ethical arena.

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Service
Reliability
Companies that continuously
nurture the values of
accuracy and dependability
prevent many errors caused
by carelessness
Service Reliability is
Attitude

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Service Reliability is Design
Service
Reliability
• Dependability and accuracy can be designed
into service system.
• Not all service mistakes stem from
carelessness. Frequently, the real culprit is a
needlessly complicated and failure-prone
service system. The flaw is in the design.

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Service
Surprise
Surprising Customers
with Details
Great service companies “major
in minors”. They use details to
be different and to signal
customers that the company is
special.

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Service
Surprise
Surprising Customers
with Details
The “wow” is the total service
experience; it is 101 little things
done with the customers’
interest uppermost in mind.

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Service
Surprise
Surprising Customers
with Extra Efforts
Companies earn extra credit
with customers through extra
effort. Customer remember
when service providers go out
their way to help them, when
they refuse to give up until a
persistent problem is solved.

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Service
Recovery
Critical Importance of
Effective Recovery Service
Research finding reveals that
customers in general are far
more forgiving of a service
failure when the company
makes a sincere, concerted
effort to remedy the problem.

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Service
Recovery
Satisfactory recovery service
sharply increases customers’
willingness to recommend the
firm and significantly improves
their perceptions of overall
service quality.
Critical Importance of
Effective Recovery Service

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Service
Recovery
Essential Steps in
Recovery Service
• Teach the Importance of
Recovery Service
• Identify Service Problems
• Resolve Problems
Effectively
• Improve the Service System

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Service
Fairness
Customers expect service
companies to treat them fairly;
they become angry and
mistrustful when they perceive
otherwise.

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Service
Fairness
Fairness is not a separate
dimension of service but, rather,
touches all customer
expectations.

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Service
Fairness
Customers expect service
companies to keep their
promise (reliability), to offer
clean, comfortable facilities
(tangibles), to give prompt
service (responsiveness), to
be competent and courteous
(assurance), and to extend
caring, individualized
attention (empathy).

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Source of Reference:
Leonard L. Berry, On Great Service : A Framework
for Action, The Free Press
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