Professional Documents
Culture Documents
Service
Recovery
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What proportion of unhappy customers complain? Why dont unhappy customers complain? Who is most likely to complain? Where do customers complain? What do customers expect once they have made a complaint?
Procedural, interactional and outcome justice
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What is a Complaint?
AS ISO 10002 Customer satisfaction Guidelines for complaints handling in organizations defines a complaint as An expression of dissatisfaction made to an organization, related to its products (services), or the complaints-handling process itself, where a response or resolution is explicitly or implicitly expected
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Dealing with Complaining Customers and Recovering from Service Failure Take complaints professionally and not personally Be prepared to deal with angry customer who may behave in an insulting way to service personnel who may not be at fault Take the perspective that customer complaints allow firm a chance to
Correct problems, Restore relationships
100 90 80 70 60 50 40 30 20 10 0
Source: Claes Fornell, Birger Wernerfelt, A Model for Customer Complaint Management, Marketing Science, Vol. 7, No. 3 (Summer, 1988), pp. 287-298
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Plays a crucial role in achieving customer satisfaction Tests a firms commitment to satisfaction and service quality
Employee training and motivation is highly important
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Customers who experience a service failure that is satisfactorily resolved may be more likely to make future purchases than customers without problems (Note: not all research supports this paradox) If second service failure occurs, the paradox disappearscustomers expectations have been raised and they become disillusioned Severity and recoverability of failure (e.g., spoiled wedding photos) may limit firms ability to delight customer with recovery efforts
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Teach recovery skills to relevant personnel Empower personnel to use judgment and skills to develop recovery solutions
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Force organizations to understand why they fail and to overcome potential fail points Reduce risks of purchase and build loyalty
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Unconditional
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Multiattribute-specific guarantee
A few important service attributes are covered
Full-satisfaction guarantee
All service aspects covered with no exceptions
Combined guarantee
All service aspects are covered
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Jaycustomer: A customer who behaves in a thoughtless or abusive fashion, causing problems for the firm, its employees, and other customers More potential for mischief in service businesses, especially when many customers are present No organization wants an ongoing relationship with an abusive customer
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Managerial implications:
Firms can benefit from offering 100 percent money-back guarantees
Guarantees should be offered to regular customers as part of membership program since regular customers are unlikely to cheat
Excellent service firms have less to worry about than average providers
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The Thief
The Rule Breaker The Belligerent The Family Feuders The Vandal The Deadbeat
To discourage abuse and opportunistic behavior, we need to deal with customer fraud
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Of complaining customers, 95% will do business with you again if you resolve the complaint at the first contact
On average, a satisfied complainer will tell 5 people about their problem and how it was solved It costs 6 times more to attract new customers than it does to retain current ones Customer loyalty is worth 10 times the price of a single purchase
How to win and Keep Customers Michael LeBoeuf
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1-4% of customers systematically cheat businesses If complaining customers are treated with suspicion or rudeness, customers will take a defensive position
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The Gift
If a customer is complaining, you are being given a chance to retain that customer
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A question to ponder
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