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Customer
                        Service for
                           Airlines
                        Processes




                        © Sudeshna
                        Chatterjee


   Service Failure
Prevention & Recovery
In this module…
 Three faces of service delivery
 Customer needs
 Total customer experience
 Preventing service failure
 Recovering from service failure
 Engineering customer experience
 Case studies
                   © Sudeshna Chatterjee
Think about it
95% of complaining customers will remain loyal if their problems
are resolved immediately and to their satisfaction.
On average, companies have a 20-40% chance of selling to lost
customers, and only a 5 – 20% probability of selling to new
prospects.
It costs 4 – 10 times more to win a customer than it does to keep a
customer.
Long-term customers tend to spend more with a company than
new customers (and they are easier to serve than new customers.
Customer loyalty to airlines is a thing of the past: now it’s all about
the customer experience.

                           © Sudeshna Chatterjee
Why customers leave




           © Sudeshna Chatterjee   Source: CRMGuru
Three faces of service delivery

   Service Excellence        Service Failure           Service Recovery

Customer is:            Customer is:                Agent:

 Satisfied/happy        Dissatisfied               Prevents/pre-empts
                                                    service failure
 Delighted              Has to call back to
                        follow up on service         Makes a dissatisfied
                                                    customer happy again


  Meet or exceed                                         Meet or exceed
                         Not meet customer              Key to Customer
    customer                                           expectations after
                           expectations                    Retention!
   expectations                                         causing distress

                            © Sudeshna Chatterjee
Think about it

What makes you stay loyal to a store,
      restaurant, or airline?

  Product    People                     Convenience

  Service    Service                    Location




                 © Sudeshna Chatterjee
Typical customer needs

                                                 ‘Listen to me’
                                              ‘Be sensitive to
‘Resolve my issue’                                    my needs’
                                              ‘Treat me like a
                                                  human being’




                     © Sudeshna Chatterjee
Typical agent behaviors


Customer service agents:
                                               Meet the customer’s
                                               STATED needs
 Answer questions
                                               But…
 Act on customer requests                     what about the
                                               UNSTATED needs?
 Follow procedure

 Resolve the issue

                       © Sudeshna Chatterjee
Customer experience

              Total Customer Experience




                                            Tone
Product
    The                                         The
                                            Choice of
Service
 Functional                                  Emotional
                                            words
Resolution
   Needs                                       Needs
                                            Body
                                            language


                    © Sudeshna Chatterjee
The Singapore girl




                                      Evokes an
                                      emotional
                                     response in
                                      customers



             © Sudeshna Chatterjee
Think about it



   Review Case Study #1.

    At which points did service
   fail?
    Could the service have been
   recovered?


                 © Sudeshna Chatterjee
A different approach

How could the customer experience have been different?



1. Ground staff at the point of                       1. Could have informed the
   departure                                             customer about the delay

2. Ground staff at the point                          2. Been there to receive the
   arrival                                               guests

3. Bus driver                                         3. Shown more urgency in
                                                         communicating with airline
4. Flight attendant                                      staff

                                                      4. Been professional and
                                                         empathetic

                                  © Sudeshna Chatterjee
Customer service roadmap




             2. Recover               3.
1. Prevent
               (Failed)               Engineer
 Service
                                      Customer
  Failure      Service                Experience


              © Sudeshna Chatterjee
1. Preventing service failure



             • Keep your promises
 Pre-empt    • Be on top of process knowledge
  Failure    • Offer a solution


             • Repeated calls-backs &
 Recognize     confirmations
  Triggers   • Anxiety
             • Special/unusual requests

                © Sudeshna Chatterjee
2. Recovering from service failure


                            Apologize

                              Own up

                          Understand

                       Seek solution

                                       Fix
               © Sudeshna Chatterjee
3. Engineering customer
 experience

   Lateral      Old Wine in               Create an
  Thinking      New Bottle               Experience
• Think out     • Soften the             • Make a big
  of the box:     blow by                  deal;
  explore         tweaking                 manipulate
  unusual         your words               the
  options         and tone                 experience
  (within
  process
  scope)

                 © Sudeshna Chatterjee
Old wine in a new bottle

              Explaining Policy

Instead of:

‘‘I’m sorry, we can only upgrade you to First Class if
you’ve flown 3000 miles in the last six months. You’re
short of 25 miles.’’

Try saying:

‘‘I’d love to upgrade you to First Class but our records
show that you’ll become eligible before the next flight.
We’d be happy to serve you in First Class on your next
flight with us!’’


                              © Sudeshna Chatterjee
Old wine in a new bottle

                         Saying No

Instead of:

‘‘All the seats on the evening flight are booked. You’ll have to
fly out tomorrow morning. There is nothing that I can do. I’m
sorry.’’

Try saying:

‘‘I’m sorry, there are no seats available on the flight this
evening. However, I can book a seat of your choice on the
first flight out tomorrow morning. You will be able to reach
Bangalore in time for the meeting. Would you like me to go
ahead and book a seat on that flight?’’

                                   © Sudeshna Chatterjee
Old wine in a new bottle

               Explaining Procedures

Instead of:

‘‘You can update your contact details on the website. Just go
to the Customer Information page and enter the new
information.’’

Try saying:

‘‘You can update your address and other contact details in the
Customer Information page on our website. If you are at your
computer, I could walk you through the steps to do so.’’



                                 © Sudeshna Chatterjee
Case Studies
Summary




          © Sudeshna Chatterjee
Thank you for your time!

        © Sudeshna Chatterjee

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Service Recovery

  • 1. Customer Service for Airlines Processes © Sudeshna Chatterjee Service Failure Prevention & Recovery
  • 2. In this module…  Three faces of service delivery  Customer needs  Total customer experience  Preventing service failure  Recovering from service failure  Engineering customer experience  Case studies © Sudeshna Chatterjee
  • 3. Think about it 95% of complaining customers will remain loyal if their problems are resolved immediately and to their satisfaction. On average, companies have a 20-40% chance of selling to lost customers, and only a 5 – 20% probability of selling to new prospects. It costs 4 – 10 times more to win a customer than it does to keep a customer. Long-term customers tend to spend more with a company than new customers (and they are easier to serve than new customers. Customer loyalty to airlines is a thing of the past: now it’s all about the customer experience. © Sudeshna Chatterjee
  • 4. Why customers leave © Sudeshna Chatterjee Source: CRMGuru
  • 5. Three faces of service delivery Service Excellence Service Failure Service Recovery Customer is: Customer is: Agent:  Satisfied/happy  Dissatisfied  Prevents/pre-empts service failure  Delighted  Has to call back to follow up on service  Makes a dissatisfied customer happy again Meet or exceed Meet or exceed Not meet customer Key to Customer customer expectations after expectations Retention! expectations causing distress © Sudeshna Chatterjee
  • 6. Think about it What makes you stay loyal to a store, restaurant, or airline?  Product  People  Convenience  Service  Service  Location © Sudeshna Chatterjee
  • 7. Typical customer needs  ‘Listen to me’  ‘Be sensitive to ‘Resolve my issue’ my needs’  ‘Treat me like a human being’ © Sudeshna Chatterjee
  • 8. Typical agent behaviors Customer service agents: Meet the customer’s STATED needs  Answer questions But…  Act on customer requests what about the UNSTATED needs?  Follow procedure  Resolve the issue © Sudeshna Chatterjee
  • 9. Customer experience Total Customer Experience Tone Product The The Choice of Service Functional Emotional words Resolution Needs Needs Body language © Sudeshna Chatterjee
  • 10. The Singapore girl Evokes an emotional response in customers © Sudeshna Chatterjee
  • 11. Think about it Review Case Study #1.  At which points did service fail?  Could the service have been recovered? © Sudeshna Chatterjee
  • 12. A different approach How could the customer experience have been different? 1. Ground staff at the point of 1. Could have informed the departure customer about the delay 2. Ground staff at the point 2. Been there to receive the arrival guests 3. Bus driver 3. Shown more urgency in communicating with airline 4. Flight attendant staff 4. Been professional and empathetic © Sudeshna Chatterjee
  • 13. Customer service roadmap 2. Recover 3. 1. Prevent (Failed) Engineer Service Customer Failure Service Experience © Sudeshna Chatterjee
  • 14. 1. Preventing service failure • Keep your promises Pre-empt • Be on top of process knowledge Failure • Offer a solution • Repeated calls-backs & Recognize confirmations Triggers • Anxiety • Special/unusual requests © Sudeshna Chatterjee
  • 15. 2. Recovering from service failure Apologize Own up Understand Seek solution Fix © Sudeshna Chatterjee
  • 16. 3. Engineering customer experience Lateral Old Wine in Create an Thinking New Bottle Experience • Think out • Soften the • Make a big of the box: blow by deal; explore tweaking manipulate unusual your words the options and tone experience (within process scope) © Sudeshna Chatterjee
  • 17. Old wine in a new bottle Explaining Policy Instead of: ‘‘I’m sorry, we can only upgrade you to First Class if you’ve flown 3000 miles in the last six months. You’re short of 25 miles.’’ Try saying: ‘‘I’d love to upgrade you to First Class but our records show that you’ll become eligible before the next flight. We’d be happy to serve you in First Class on your next flight with us!’’ © Sudeshna Chatterjee
  • 18. Old wine in a new bottle Saying No Instead of: ‘‘All the seats on the evening flight are booked. You’ll have to fly out tomorrow morning. There is nothing that I can do. I’m sorry.’’ Try saying: ‘‘I’m sorry, there are no seats available on the flight this evening. However, I can book a seat of your choice on the first flight out tomorrow morning. You will be able to reach Bangalore in time for the meeting. Would you like me to go ahead and book a seat on that flight?’’ © Sudeshna Chatterjee
  • 19. Old wine in a new bottle Explaining Procedures Instead of: ‘‘You can update your contact details on the website. Just go to the Customer Information page and enter the new information.’’ Try saying: ‘‘You can update your address and other contact details in the Customer Information page on our website. If you are at your computer, I could walk you through the steps to do so.’’ © Sudeshna Chatterjee
  • 21. Summary © Sudeshna Chatterjee
  • 22. Thank you for your time! © Sudeshna Chatterjee