Service Recovery

Customer Response Categories to
Service Failures

Effective Service Recovery System
Conduct Customer
Research
Identify Service
Problem
Resolve Problems
Effectively
Modify Service
Processing Monitoring
Learn From Recovery
Experience
Nurture People Factor
Conduct Root Cause
Analysis
 Monitor Customer
Complaints
Make Amends to
Hassle Factor
Setup Problem
Tracking System
 Monitor Service
Process

Importance of Service Recovery
 Plays a crucial role in achieving customer satisfaction
 Tests a firm’s commitment to satisfaction and service quality
 Employee training and motivation is highly important
 Impacts customer loyalty and future profitability
 Complaint handling should be seen as a profit center, not a cost
center
 Severity and “recoverability” of failure may limit firm’s ability to
delight customer with recovery efforts
 Customers who experience a service failure that is satisfactorily
resolved may be more likely to make future purchases than
customers without problems

Impact of Effective Service Recovery on
Customer Loyalty

How to Enable
Effective Service Recovery
Welcome and
Encourage
Complaints
Act Quickly
Learn from
Last Customer
Learn from
Recovery
Experiences
Treat Customer
Fairly
Fail-Safe the
Service
• Be proactive
• On the spot, before customers complain
• Plan recovery procedures
• Identify most common service problems and have
prepared scripts to guide employees in service recovery
• Teach recovery skills to relevant personnel
• Empower personnel to use judgment and skills to develop
recovery solutions

Literature Review
Service Recovery
 Service recovery is an important activity, as customer value is also created during service
recovery process through perceived risk and perceived justice based on emotional value
 Satisfaction through service recovery strategies can also affect negative emotions
 People from different culture may react differently to negative service encounters
 Research work identifies eight types of emotional episodes; classified in four groups;—
positive emotions: happiness & delight;—situation-attributed negative emotions:
anxiety & fear;—other attributed negative emotions: anger & frustration; and— self
attributed negative emotions of: guilt & shame

Research Paper Overview – A Study on Chain of
5 star hotels
 Survey and Evaluation of Service Recovery
Strategies on Complainant-Client Satisfaction,
Word-of-Mouth Communication (WOM) and Client
Loyalty
 The research was carried out over six mounts from
November 2009 to April 2010, on complainant
clients residing in each of the 5- star hotels in
Mashhad city

Questionnaire
Questions: Strongl
agree
(5)
Somewhat
agree(4)
Agree nor
disagree(
)
Somewh
t
disagree(
2)
Strongl
disagre
1
sincere apology has a significant and
positive effect on complainant (client)
satisfaction
promptness has a significant and
positive effect on complainant (client)
satisfaction
explanation influences complainant
(client) satisfaction significantly and
positively
redress has a significant and positive
effect on complainant (client)
satisfaction
complainant (client) satisfaction

Research Gap
 Consumer’s expectation and perception gap
 Customer perceived vs. received recovery gap
 Employee delivery of service recovery vs. received service
recovery
 Employee performance gap
 Customer vs. employee expected perception of expected
service recovery.
 Management vs. employee perception for expected recovery

Thank You