Regaining Customer Confidence Through Customer Service and Service Recovery.
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Transcript of Regaining Customer Confidence Through Customer Service and Service Recovery.
Regaining Customer Confidence Through
Customer Service and Service
Recovery
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 2
Customer Service
• Refers to all customer-provider interactions, other than proactive selling and the core product delivery, that facilitate the organization’s relationship with its customers.
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 3
Customer Service asa Strategic Function
• A marketing function applicable to services and goods.
• Traditionally for complaint handling and refund/exchange.
• Market and marketing research source.
• Provides valuable input for service design improvements.
• Proactive customer service better than reactive.
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 4
Customer Service asa Strategic Function (cont’d)
• Prioritizes attention - most valuable (customers) relationships.
• Elevates status of customer service function within firm.
• Makes it everyone’s responsibility.
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Developing a Customer Service Culture
• When the customer service function is elevated to a strategic level, the service organization signals its importance to all employees. • As a former CEO of American Express
(http://www.americanexpress.com) noted, "A dissatisfied customer is an opportunity."
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 6
Developing a Customer Service Culture (cont’d)
• Service organizations and manufacturing organizations are realizing that customer service is a major corporate asset.
• One significant function of customer service is to enable the organization to recover from failures that caused customer dissatisfaction and customer complaints.
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 7
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 8
Service Recovery
• The effort an organization expends to win back customers’ goodwill once it has been lost due to service failure.
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 9
The Need for Service Recovery
• The High Cost of Lost Customers
• When Is Service Recovery Needed?
• Other Means of Identifying Recovery Needs
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Moment of Truth
• Any contact point with a service organization that the customer uses to evaluate the service delivery.
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The Steps to Service Recovery
A.Apology
B.Urgent Reinstatement
C.Empathy
D.Symbolic Atonement
E. Follow-Up
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The Hidden Benefits ofService Recovery
• There are several ways systematic service recovery programs benefit an organization:• The process can help improve the
overall quality of service delivery as the service occurs.
Copyright © Houghton Mifflin Company. All rights reserved. 11 - 13
The Hidden Benefits ofService Recovery
• Keeping track of the sources of dissatisfaction that create a need for recovery can help the organization.
• Service recovery can reduce the incidence of bungled moments of truth if information regarding customers’ dissatisfaction is put to good use.