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Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 13 - 1

SERVICE RECOVERY

SUBMITTED TO :

RESP SHIVANI

MAM

SUBMITTED BY :

ROHIT NARWANI

MBA IV SEM

PRESENTATION ON

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Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 13 - 2

MEANING OF SERVICE RECOVERYMEANING OF SERVICE RECOVERY

the effort an organisation expends towin back customers goodwill once ithas been lost due to service failure-

refers to actions taken by anorganisation in response to someservice failures

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Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 13 - 3

ImportanceofService RecoveryImportanceofService Recovery

Playsacrucialroleinachievingcustomersatisfaction.

Testsafirmscommitmenttosatisfactionandservice quality.

Impactscustomerloyaltyandfutureprofitability.

Playsacrucialroleincomplainhandling.

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Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 13 - 4

Threedimensionofperceivedfairnessinservicerecoveryprocess:

Procedural

Justice

Procedural

Justice

Interactive

Justice

Outcome

Justice

Outcome

Justice

Complaint Handling and Service

Recovery Process

Complaint Handling and Service

Recovery Process

Justice Dimensions of the Service Recovery Process.

Customer Satisfaction with

Service Recovery

Customer Satisfaction with

Service Recovery

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Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 13 - 5

HOW CUSTOMER RESPONSETO SERVICEFAILURE:

Service Encounteris Dissatisfactory

Take someform of Public

Action

Take some formof Private

Action

Take NoAction

Complain to theservice firm

Complain to athird party

Take legal actionto seek redress

Switchprovider

Negative word-of-mouth

Any one or acombination of these

responses is possible

.

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Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 13 - 7

continExplanationofstrategies:

Welcomeandencouragecomplain.

Act quickly.

Treatcustomerfairly.

Learnfromrecoveryexperiences.

Learnfromlostcustomer.

Doitrightthefirsttime.

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Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 13 - 8

Causesbehindserviceswitching.

Service

Switching

Behavior

High Price

Price Increases

Unfair Pricing

Deceptive Pricing

Pricing

Location/Hours

Wait for Appointment

Wait for Service

Inconvenience

Service Mistakes

Billing Errors

Service Catastrophe

Core Service Failure

Negative Response

No Response

Reluctant Response

Response to Service

Cheat

Hard Sell

UnsafeConflict of Interest

Ethical Problems

Customer Moved

Provider Closed

Involuntary Switching

Source: Sue Keaveney, Customer Switching Behavior in Service Industries: An Exploratory Study, Journal of Marketing, April, 1995, pp. 71-82.

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Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 13 - 9

pricing

Ethicalproblems

competition

Inconvenience&

responses toservice failure

Causes of service switching in

percentages.(%) according to Indianconsumer.

35%

30%

20%

15%

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Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 13 - 10

IMPACTON SERVICE RECOVERY ONIMPACTON SERVICE RECOVERY ONCUSTOMERLOYALTY:CUSTOMERLOYALTY:

Dothe jobright

thefirsttime

EffectiveComplaint

Handling

Identify Service

Complaints

ResolveComplaints

Effectively

Learnfromthe

RecoveryExperience

Increased

Satisfactionand

Loyalty

-Conductresearch

-MonitorcomplaintsDevelop Complaints

asopportunity

culture

-Developeffective

systemandtrainingincomplaints

handling

-Conductrootcause

analysis

=+

Close the loop via feedback

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Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 13 - 11

SERVICE GUARANTEE

INTERNAL BENEFIT.

Sets performance

standards.

Boosts morale andperformance of theemployee.

Honest communicationbetween firm andcustomer.

External benefit.

Provision of error free

service due to promise.

Increases volume ofcustomers and lifetimevalue to firm.

Reduces risk therefore:

Encourages purchase

Positive word of

mouth.

BENEFITOF SERVICE GUARANTEE

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Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 13 - 12

HOWTODESIGNEFFECTIVE SERVICEGUARANTEES:

UNCONDITIONAL.UNCONDITIONAL.

EASY TO UNDERSTAND AND COMMUNICATE.EASY TO UNDERSTAND AND COMMUNICATE.

MEANINGFULTOTHE CUSTOMER.MEANINGFULTOTHE CUSTOMER.

EASY TOINVOKE.EASY TOINVOKE.

CREDIBLE.CREDIBLE.

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Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 13 - 13

TheHamptonInn100% Satisfaction Guarantee

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Slide 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 13 - 15

BUILDING CUSTOMER FEEDBACK:

Customer Feedback CollectionToolsCustomer Feedback CollectionTools

Customer advisory panelsCustomer advisory panels

Mystery shoppingMystery shopping

Complaint analysisComplaint analysis

Employee surveys/panelsEmployee surveys/panels

Post-transaction survey

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Service recovery is the key tocustomer satisfaction and achievingthis should be a primary goal for

service organisations.Service recovery strategies play acrucial role in customer satisfaction.

CONCLUSIONCONCLUSION

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I WOULD

LIKE TO GIVE THANKS

TO ALL OF YOU

FOR LISTENING

ME PATIENTLY!!!!!