Service Recovery
Research Insights and Practices
報告人：陳禹諾
授課老師：任維廉老師
Introduction of myself
1
Abstract
Service
recovery
Customer satisfaction
Customer loyalty
Some firms treated service recovery as an investment and
deploy considerable resources in programs and assets to
improve recovery efforts.
2
Outline
 Definition
 Explore the association between service recovery and customer
and employee satisfaction and loyalty.
 An examination of how customers evaluate responses to
complaints
 How can firms take to improve those evaluations
 How firms can learn from service failure.
3
Defining service recovery
Complaint handling?
The process:
identifies
service
failures
effectively resolves
customer problems
classifies
their root
causes
yields
data
4
Service recovery, satisfaction, and loyalty
 Customer loyalty drives profitability !
 Only very effective service recovery will lead to
enhanced customer satisfaction and loyalty.
customer
loyalty
employee
Internal service recovery
5
Consumer responses to service failures(1/2)
A necessary condition for service
recovery is identifying when failure occur.
Investigations into consumer responses to failure
are informative regarding some of the challenges
associated with recovery.
The key service recovery insights of CCB
research are that a high percentage of dissatisfied
customers do not complain and that several
barriers help explain this behavior.
6
Consumer responses to service failures(2/2)
Classification by Day and Landon (1977) Day (1984): complaint behavior
Convey an expression
of dissatisfaction or not.
redress seeking
complaining
The response taken is
public or private.
personal boycotting
Singh (1990): consumer dissatisfaction
response styles
Singh (1988)
voice response
Passives,
Voicers
Irates
Activists
private responses
third-party
7
Identifying service failures
Setting Performance Standard:
One reason customers choose not to complain about service failures
is that they have unclear expectations for performance and, therefore,
are not really sure themselves when a services has failed.
Training Customers in Complaining:
Another barrier to complaining is customers being unclear about how
to go about the process.
Utilizing Technology:
To improve overall customer service and to lower the cost and increase
the responsiveness of the recovery process, many firms have introduced
toll-free telephone call centers.
8
Responding to service failures
Distributive
Justice
Procedural
Justice
Interactional
Justice
Distributive Justice:
The allocation of benefits and costs.
Procedural Justice:
Procedural fairness concerns the polices and rules that form the
complaint process.
Interactional Justice:
Interactional Justice concerns the behavior of firm representatives
during the complaint process.
9
Strategies for recovering successfully
Human Resource Management Practices:
It is clear that successful service recovery is often highly influenced by
the effectiveness of the front-line employee who receives the complaints.
Establishing Guidelines and Standards:
Developing guidelines for service recovery that focus on achieving
fairness and satisfaction represents a direct approach to improving
performance.
Providing Easy Access and Effective Responses:
1. the hours of operation (24 hours a day, 365 day a year)
2. up-to-date customer and product information.
Customer and Product Databases:
Using database in conjunction with call centers and websites helps
firms achieve fairness goal.
10
Learning from failure(1/2)
Classification of Service Failure:
classifying failure is a key link to understanding both how specific
customer problems can be resolved and what process improvements need
to be made.
Customer Action Request Form
 Whether the problem primarily concerned process, people, product, or policy.
 The problem is coded as primarily involving one of seven factors: attitude,
communication, training, ethics, human error, technical, or invoice.
 Business area.
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Learning from failure(2/2)
Integrating Recovery and Other Intelligence Data:
Complaint data are best deployed in conjunction with other intelligence
gathering techniques to determine the importance and pervasiveness of a
problem and identify areas for service improvement.
Disseminating the Data:
Delta Hotels
Ford
12
Conclusion
Service recovery is a complex process that can, when done
effectively, contribute to customer and employee
satisfaction both at the service encounter level and in the
development of long-term commitment.
Service
design
Performance
Improve
Investment
decisions
Customer and employee
satisfaction
Firm profitability
13
Thank you !