Service recovery strategies
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This document discusses the importance of service recovery strategies for retaining customers. It notes that all products and services can experience defects, negatively impacting customer loyalty. To retain customers, marketers should invest in service recovery strategies alongside other efforts. This involves understanding customer expectations, developing customer-driven service standards, empowering employees to resolve complaints, and handling customer complaints through a consistent technique. The document provides examples of developing clear and measurable service standards for all stages of the customer experience.
Service recovery strategies
- 2. Case Study- Furious Customer and the washing machine
- 3. Any Product or service could fail Even the most admired brands have experienced defects or short comings in their products and services It could be a technological error or human error What ever it is, it negatively impacts on customer loyalty “ the dream of the marketer”
- 4. If a marketer wants to retain customers it should invest on Service Recovery Strategies in the same emphasis and importance with other strategies
- 5. ◦ Understand the expectation of customers ◦ Develop Customer Driven Service Standards ◦ Let everybody knows about the Service Standards ◦ Empower employees to take decisions ◦ Develop and establish a technique that could handle customer complaints
- 6. The best way to find out customer expectations is to put you in the shoes of a customer All of us are customers of other goods and services sellers Lets do an exercise 6
- 7. 1. How many minutes that you expect to spend when you go to your usual bank to deposit money 2. When you meet with an accident and you call insurance how quickly the assessor should arrive a……………………………………………………………… …………………………………………… 7
- 8. 3. When you go to your usual grocery to buy some groceries and fell short of money a……………………………………………………… …………………………………………………….. b……………………………………………………… ……………………………………………………. 4. You complain that the washing machine that you received after repairs gives the same trouble within 2 days after repair. ……………………………………………………… ……………………………………. 8
- 9. 5. You complain that your electricity meter is working fast ( defective) 6. You have just taken back the vehicle from the garage that you gave it to tune your engine. On your way back a fan belts breaks. 9
- 10. Understanding( internal or external) customer is not enough You have to have customer driven Service Standards (SS) Customer defined SSs are designed to translate your actions and behavior for the expectations of customers. You should not allow anything to chance and moods of your staff 10
- 11. Specific- (time for routine jobs, time per customer, when to bill, packaging, how long it takes to issue an estimate, acceptance of credit card, credit limits, credit approvals, returning procedure, guarantees, giving away compliments, how long you will take to call back a customer, how to greet and address customers, dress code etc) 11
- 12. Quantified-( Quickly, soon in due course, substantial amount, little is not acceptable) WITHIN 10 MINUTES, 3 DAYS, 10% , BY Rs. 200 )
- 13. Measurable – most of the time, maximum possible, try hard not acceptable – Up to 90% of the repairs will be done within 7 days, All customers should be served hot food, all letters will be delivered within 2 days
- 14. Service standards should be for Pre- Sales, With Sales, After Sales
- 15. Analyse what really customers want how to greet and address customers, dress that they would appreciate, time that they would like to spend when they come to buy goods, what packaging they like, how long they would wait to receive a quotation/ estimate, acceptance of credit card, credit limits, credit approvals, delivery, returning procedure, what kind of guarantees that they request, compliments, how long a customer would like to call back on a telephone inquiry,) 15
- 16. Have an idea of your capacity ( staff strength and their willingness, courtesy level, commitment, knowledge, technology, space, your returning and guarantee policy, dress code,, vehicles available for delivery etc.) Suggest what you should do to please customers Can you do what you suggest within your current capacity ( will there be a gap?)
- 17. Invest on training programs of employees Give special training in handling customers to front liners Develop their listening and telephone skills Let them take quick decisions rather than referring to many officers or divisions
- 18. Once SSs are set out ◦ Publish within the company ◦ Let everybody know them very well ◦ Put into practice ◦ Monitor it ◦ Reward success ◦ Re-evaluate and upgrade 18
- 19. HEAR EMPATHISE APPOLOGISE TAKE RESPONSIBILITY ( Fix it) 19
- 20. Always think of the Life Time Value ( LTV) of a customer when complaints are handled. Calculate the LTV of a person buying groceries to the value of Rs. 10000 per month Calculate the loss if a dissatisfied customer spreads the story to 10 customers 20