Service Recovery Research Insights and Practices

1. Service RecoveryResearch Insights and Practices 報告人：陳禹諾 授課老師：任維廉老師

2. Introduction of myself 1

3. Abstract Customer satisfaction Service recovery Customer loyalty 2 Some firms treated service recovery as an investment and deploy considerable resources in programs and assets to improve recovery efforts.

4. 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

5. Defining service recovery Complaint handling? The process: effectively resolves customer problems classifies their root causes yields data identifies service failures 4

6. Service recovery, satisfaction, and loyalty  Customer loyalty drives profitability !  Only very effective service recovery will lead to enhanced customer satisfaction and loyalty. loyalty customer employee Internal service recovery 5

7. Consumer responses to service failures(1/2) Anecessary 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

8. Consumer responses to service failures(2/2) Classification by Day and Landon (1977) Day (1984):complaint behavior redress seeking voice response Convey an expression of dissatisfaction or not. private responses complaining The response taken is public or private. third-party personal boycotting Singh (1990):consumer dissatisfaction response styles Singh (1988) Passives, Voicers Irates Activists 7

9. 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. 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. • Training Customers in Complaining: • Another barrier to complaining is customers being unclear about how to go about the process. 8

10. Responding to service failures Distributive Justice: The allocation of benefits and costs. Distributive Justice Procedural Justice Interactional Justice • 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

11. 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

12. 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. 11

13. 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

14. 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 Customer and employee satisfaction Investment decisions Firm profitability 13

15. Thank you !