Chapter 7: Service Breakdowns and Service Recovery

Learning Outcomes 7-1 Define what a service breakdown is. 7-2 Apply knowledge of behavioral styles in difficult customer situations. 7-3 Recognize different types of difficult customers and effectively deal with them. 7-4 Use the emotion-reducing model to help keep difficult situations from escalating. 7-5 Explain why customers defect. This chapter discusses the reasons for service breakdowns and recovery strategies.

Learning Outcomes 7-6 Develop effective strategies for working with internal customers. 7-7 Identify strategies for preventing customer dissatisfaction and problem solving. 7-8 Explain the six steps of the problem-solving model. 7-9 Implement a front-line service recovery strategy, and spot roadblocks to service recovery. This chapter discusses the reasons for service breakdowns and recovery strategies.

Service Breakdown Define Examples Expectations for people Occur daily in all types of organizations Happen whenever the product or service delivered fails to meet the customer expectations Customers today are better educated (technology has helped with this) and more discerning Examples Expectations for people Expectation for products LO 7-1 Service breakdowns Define Occur daily in all types of organizations Happen whenever the product or service delivered fails to meet the customer expectations Customers today are better educated (technology has helped with this) and more discerning

Service Breakdown Define Examples Expectations for people Occur daily in all types of organizations Happen whenever the product or service delivered fails to meet the customer expectations Customers today are better educated (technology has helped with this) and more discerning Examples Expectations for people Expectation for products LO 7-1 Service breakdowns Define Occur daily in all types of organizations Happen whenever the product or service delivered fails to meet the customer expectations Customers today are better educated (technology has helped with this) and more discerning

Service Breakdown and style Behavioral Style Define RIDE Strategies LO 7-2 The role of behavioral style Define As discussed in chapter six, a behavior style plays a major role in how people will react in situations Everyone is different, so it is important not to stereotype Learn to deal with your own emotions and know your own style and understand how you tend to react in certain situations

Difficult Customers Types of difficult customers Examples Dissatisfied Demanding Rude Indecisive Talkative Internal with special requests With disability Other language LO 7-3 Difficult customers Types of difficult customers Dissatisfied Indecisive or lack knowledge about product Rude or inconsiderate Talkative Internal customers with special requests English as a second language Elderly and those in needs of extra assistance Some type of disability

Handling Difficult Customers Avoid Stereotyping Strategies for dealing with each type LO 7-3 How to handle these customers Avoid stereotyping Demanding customer Be professional Respect the customer Be firm and fair Focus on the needs of the customer Tell the customer what you can do Indecisive customers Be patient Ask open ended questions Listen actively Suggest other options Guide decision making Dissatisfied and angry customers Listen Remain positive and flexible Smile Be compassionate and empathize Don’t make excuses Take appropriate action Reduce frustration for the customer Rude or inconsiderate customers Remain professional Don’t resort to retaliation Talkative customers Remain warm and cordial but focused Ask specific open ended questions Use closed end questions to control Manage the conversation

The Emotion Reducing Model How the model works How to use it LO 7-4 The emotion reducing model How it works Before you can get your customer to calm down and listen to address the situation, you must first deal with their emotional state Demonstrate patience What to do Use customer focused messages For example, “I understand why you are frustrated” or “I see why you feel that way“ and apologize where necessary Use open body language and smile

Reasons for Defection What is defection? Examples Poor Services Complacency Inappropriate complaint resolution Unmet needs LO 7-5 Reasons for defection Define Defection occurs when you have not met a customers’ expectations and they go to your competitors instead Poor service and not following through on complaints of poor service Inappropriate compliant resolution Unmet needs

Working with Internal Customers Strategies to use Stay connected Meet all commitments Don’t sit on emotions Build a professional reputation Adopt a good neighbor policy LO 7-6 Working with internal customers Define Internal customers are also called co-workers Stay connected If you know of a special occasion, acknowledge it Make efforts just to stop by or email to say hello Meet your commitments to others-if you say you are going to do something, follow through. Don’t let your emotions fester-address them Build a professional reputation Adopt a good neighbor policy Avoid gatherings of friends in a work area and lots of noise Maintain good grooming and hygiene habits Don’t overdo ccing of too many emails Don’t unload personal problems on co workers Avoid gossip Pitch in to help Be truthful

Preventing dissatisfaction Strategies to prevent dissatisfaction Think like the customer Pamper the customer Respect the customer Exceed expectations LO 7-7 Strategies for Service recovery Think like the customer Pamper the customer Respect the customer Exceed expectations

Problem Solving Process Uses/examples The problem solving model Identify the problem Collect data Identify alternatives Evaluate alternatives Make a decision Monitor results LO 7-8 Problem solving process Problem solving model Identify problem Compile and analyze data Identify alternatives Evaluate alternatives Make a decision Monitor the results Sometimes problems don’t’ need to be solved, a customer may just want to vent

Strategies for Service Recovery Examples where you might need a strategy Steps to recovery Apologize Take immediate action Show compassion Provide compensation Conduct follow up LO 7-9 Service Recovery Strategy Examples of situations that need recovery A service provider lacked adequate knowledge to handle a situation Attempts to return an item were hampered by policy A customer was given the runaround The customer was treated in a rude manner Steps to recovery Apologize and apologize again Take immediate action This isn’t always possible; if so offer alternatives Show compassion Provide compensation Conduct follow up