SERVICE BREAKDOWNS

& RECOVERY
Reporter: Natasha M. Beldad
 LO. 7-6 REASONS FOR
CUSTOMER DEFECTION
Failing to meet the customer’s needs,
handling problems inefficiently, treating the
customer unfairly, and using inadequate
systems are reasons for the customer to leave
you and go elsewhere.
Price. Customers are often willing to switch product and service
providers because of pricing.

Poor service and complacency. If customers perceive that you

and/or your organization do not sincerely care about them or
about solving their problems, they may go elsewhere.
Lack of communication. Organizations that do not embrace customer-
centric systems are doomed to failure as customers desert and move
on to a competitor.

Inappropriate complaint resolution. The key thing to remember about

complaint resolution is that it is the customer's perception of the
situation, not yours, that counts.

Unmet needs. Customers may have very specific needs to which you
must attend. Failure to address or satisfy customer needs will likely
cause customers to seek an alternative source of fulfillment.
Customer defection -
When customers take their
business to competitors
because they feel that
their needs or wants are
not met or they encounter
a breakdown in customer
service or inferior
products.
 LO 7-7 STRATEGIES FOR PREVENTING
DISSATISFACTION AND PROBLEM SOLVING

strategies for preventing

dissatisfaction
Techniques used to prevent a breakdown in needs
fulfillment when you are dealing with customers.
MAKE A POSSITIVE INITIAL CONTACT

First impressions are crucial and often lasting. To

ensure that you put your best effort forward,
remember the basics of positive verbal and nonverbal
communication
If their expectations are not met, you and your organization
can lose relationship rating points that can ultimately cost
the organization a customer.

Use this relationship-rating point scale frequently to evaluate

your rating as you deal with various customers.
Relationship-rating points- Values mentally assigned by customers to a
service provider and his or her organization. They are based on a
number of factors starting with initial impressions and subsequently by
the quality and level of service provided.

Relationship-rating point scale Mental rating system that customers

apply to service and service providers.
Exemplary (4) Service that is out of the ordinary
and unexpected falls into this category.

Example:A beauty salon owner provides a free

Swedish massage to a regular patron on her
birthday.
Above Average (3) Service in this category goes beyond
the normal and may pleasantly surprise the customer, but
it does not dazzle the customer.

Example: A regular customer at a bar gets a free second

drink from the bartender.
Average (2) Service at this level is what is expected by a customer.

Example: A customer drops off laundry and when it is picked up,

his shirts are starched as requested, on hangers, and in a plastic
garment bag.
Below Average (1) Service provided at this level is not as
expected and disappoints customers.

Example: A newspaper deliverer brings a replacement

paper after a customer calls to complain, leaves it on the
doorstep, rings the bell, and departs without apologizing.
Unsatisfactory (0) Service at this level is unacceptable and
typically leads to a breakdown in the customer-provider
relationship.

Example: A customer’s cat is neutered by a veterinarian

when taken in for a flea dip.
THINK LIKE THE PAMPER THE RESPECT THE
CUSTOMER CUSTOMER CUSTOMER
In order to be successful in Make customers feel Respect is a basic value
serving customers, special and important. that most people expect
research and learn to use and in some cases
interactive communication demand.
techniques.
SOME STRATEGIES THAT YOU MIGHT USE TO FOCUS ON THE
CUSTOMER’S CONCERNS.

React to remarks Reassure or reaffirm.

or actions.

Empathize. Follow up.

EXCEED EXPECTATIONS

Go the extra mile by giving your

customers exemplary service.
Strive to get the highest rating
possible on the relationship-rating
point scale that you read about
earlier.
RESPONDING TO CONFLICT

Conflict should be viewed as

neither positive nor negative.
Instead, it is an opportunity to
identify differences that may need
to be addressed when dealing with
your internal and external
customers.
Conflict - Involves incompatible
or opposing views and can
result when a customer’s
needs, desires, or demands do
not match service provider or
organizational policies,
procedures, and abilities.
 THE FOLLOWING ARE EXAMPLES OF FIVE
FORMS OF CONFLICT THAT MIGHT OCCUR
IN YOUR ORGANIZATION:

THE FOLLOWING ARE EXAMPLES OF

FIVE FORMS OF CONFLICT THAT CAUSES OF CONFLICT TRY THE FOLLOWING STRATEGIES:
MIGHT OCCUR IN YOUR
ORGANIZATION:

• Conflicting values and • Remain calm.

beliefs.
• Between individuals.
• Be proactive in avoiding
• Personal styles Differences conflict.
• Between an individual and a
group.
• Differing perceptions. • Keep an open mind.
• Between an individual and
• Inadequate or poor • Identify and confront
an organization.
communication underlying issues
• Between organizational immediately.
• Goals out of sync with
groups.
reality. • Clarify communication.
SALVAGING RELATIONSHIPS AFTER CONFLICT

Managing conflict involves more than just resolving the

disagreement. Often poorly handled service recovery efforts result
in such things as complaints to a service provider’s supervisor or
consumer agencies, bad word-of-mouth publicity, and lost
customers.
The following strategies can assist in your service
recovery efforts:

• Reaffirm the value of the relationship.

• Demonstrate commitment.

•Be realistic.

• Remain flexible.
LO 7-8 THE PROBLEM-
SOLVING PROCESS
Problem-solving model
process- used by a
service provider to assist
customers in determining
and selecting appropriate
solutions to their issues,
concerns, or needs.
1. IDENTIFY THE PROBLEM

Before you can decide on a

course of action, you must first
know the nature and scope of the
issue you are facing.
2. COMPILE AND ANALYZE THE DATA

To effectively determine a course of

action, you need as much information
as possible and a thorough
understanding of what you are
dealing with getting that data
requires active listening and a little
investigative work.
3. IDENTIFY THE ALTERNATIVES

Let customers know that you are

willing to work with them to find an
acceptable issue resolution. Tell them
what you can do, gain agreement,
and then set about resolving the
issue.
4. EVALUATE THE ALTERNATIVES

Once you have collected all the facts,

look at your alternatives or possible
options. While you should certainly
strive to hold down costs to your
organization, be careful not to let cost
be the deciding factor.
5. MAKE A DECISION

Based on the questions in step 4,

and any others you wish to use in
evaluation, decide on what your
course of action will be.
6. MONITOR THE RESULTS

Once you have made a judgment call, monitor the

effect or results. Do not assume that your customer is
satisfied, especially if any negotiation occurred
between the two of you.
LO 7-9 IMPLEMENTING A
SERVICE RECOVERY STRATEGY
Service providers sometimes blunder. Mistakes often
appear glaring to customers, who can be very demanding
and unforgiving at times. The best you can hope for when
something goes wrong is that you can identify the cause
and remedy it quickly to the satisfaction of your
customer.
 Some typical occurrences that
necessitate service recovery action by a
service provider include:

• A product or service did not deliver as

expected.

• There was a failure to keep a promise

(e.g., failure to follow up).

• A deadline was missed.

• Customer service was not adequately

provided (the customer had to wait
excessively or was ignored).
ACCORDING TO A CONSUMER SURVEY BY THE INTERNATIONALLY KNOWN
TRAINING COMPANY ACHIEVE CUSTOMER WANT THE SERVICE THEY RECEIVE
TO BE:

Seamless.The company manages behind-the-scenes service

factors so that they remain invisible to the customer

Trustworthy. The company provides what is promised, dependably and with

quality.
Attentive.The company provides caring, personalized attention to
customers, recognizing both their human and business needs.

Resourceful. The company efficiently provides flexible and creative

solutions.
TYPICALLY, THERE ARE FIVE PHASES TO
THE SERVICE RECOVERY PROCESS:

1. APOLOGIZE, APOLOGIZE, AND APOLOGIZE AGAIN

Showing sincere remorse throughout the recovery cycle is crucial. Listen

carefully. Empathize with the customer as he or she explains and do not make
excuses, interrupt, or otherwise indicate (verbally or nonverbally) that you do
not have time for the customer.
 TYPICALLY, THERE ARE FIVE PHASES TO
THE SERVICE RECOVERY PROCESS:

2. TAKE IMMEDIATE ACTION

As soon as your customer has identified a problem, you must set about
positively resolving it. As you proceed, it is crucial that you keep the
customer informed of actions, barriers encountered, or successful efforts.
TYPICALLY, THERE ARE FIVE PHASES TO
THE SERVICE RECOVERY PROCESS:

3. SHOW COMPASSION

To help the customer see that your remorse and desire to solve a
problem are genuine, you must demonstrate empathy.
TYPICALLY, THERE ARE FIVE PHASES TO
THE SERVICE RECOVERY PROCESS:

4. PROVIDE COMPENSATION

Customers are a valuable asset. If you or your organization

are responsible for a service breakdown, you should
attempt to make up for their inconvenience or loss.
TYPICALLY, THERE ARE FIVE PHASES TO
THE SERVICE RECOVERY PROCESS:

5. CONDUCT FOLLOW UP

Following up after service is the only way to find out

whether you were successful in your recovery efforts or
whether the customer is truly satisfied.
LO 7-10 Disaster Planning Initiatives in
the Service Recovery Process
Disaster preparedness - process through which
an organization creates an active plan to contain
the effects of a disastrous event in order to
minimize injury and loss of life and property.
U.S. Small Business Administration suggests that
organizations take at least the following actions to
prepare for potential disaster situations. This will allow
them to remain functional or to more effectively recover
should a similar catastrophe strike:

• Create a preparedness program for the business.

• Identify critical business functions and systems.

• Create an emergency communications plan.

• Test preparedness systems regularly.

ARIGATHANKS 🫰🫰