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>Just when you think you’ve got everything in place for the perfect execution of your service delivery, something goes wrong and a customer becomes unhappy. How important is it to do something about it?

According to the Research Institute of America in a study they conducted:
• 90% of customers who are dissatisfied with service they received will not come back or buy again

• Only 4% of unhappy customers bother to complain. For every complaint heard, 24 others go uncommunicated to the company, but not to other potential customers

• Of the customers who register a complaint, between 54% and 70% will do business again with the organization if their complaint is received. That figure goes up to 95% if the customer feels that the complaint was resolved

So, obviously it pays to have a good service recovery strategy in place! If you don’t already have a formal one you may want to consider the following:
STRATEGIES FOR SERVICE RECOVERY

1. LOW FAULT, LOW SEVERITY
If the issue is on the low scale of being your company’s fault and you would consider it low on the scale of being a huge problem/inconvenience to the customer, then: APOLOGIZE

2. HIGH FAULT, LOW SEVERITY
The problem is directly caused by your organization, but it is deemed low in seriousness to the customer. APOLOGY/FIX IT+

3. LOW FAULT, HIGH SEVERITY
This approach is for the issue that is low on your company’s fault or maybe had nothing to do with them at all, but is high on seriousness to the customer in causing hassle, frustration or pain. Become a HERO.

4. HIGH FAULT, HIGH SEVERITY
It is obviously the fault of your company and it is causing a very serious problem for the customer. The employee should roll out the RED CARPET, which means doing whatever he can to correct the problem and to comfort the customer.

These four approaches can be tailored to any organization. The key is to identify examples of each in your business, then train and communicate to all employees. Great service recovery cannot be underestimated!

For examples click here

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2 Response Comments

  • e_stromland  January 29, 2010 at 6:58 pm

    >Teri, you make some great points. However TQM like ISO 9000 does not solve many of the issues you mention above. A plan for customer retention and how complaints are processed, are imperative. To many the customer feel the service provider does not take ownership of their product. To apologize, or I am sorry, might show remorse, however it does not deal with root cause and preventative action, addressing policy and process adjustments.

    Great topic,
    Regards,
    Erik

    Reply
  • Teri Yanovitch  January 29, 2010 at 7:12 pm

    >I totally agree with you Erik. Having been in quality management for over 15 years under quality guru Philip Crosby, I realize these are all "quick" fixes. However, on the immediate side, you have to do something to stop the bleeding, but then, as you say, have got to address the root cause/s and take corrective action. This is where the rubber hits the road, because few companies are willing to take the time to stop and do this. They prefer to keep putting out the same ole fires time and time again.

    Teri

    Reply

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