1. Regaining Customer Confidence Through Customer Service and Service Recovery

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.
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3. Customer Service as a 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.
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4. Customer Service as a 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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5. 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 ( noted, "A dissatisfied customer is an opportunity."
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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.
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8. Service Recovery
The effort an organization expends to win back customers’ goodwill once it has been lost due to service failure.
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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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10. Moment of Truth
Any contact point with a service organization that the customer uses to evaluate the service delivery.
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11. The Steps to Service Recovery
Apology
Urgent Reinstatement
Empathy
Symbolic Atonement
Follow-Up
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12. The Hidden Benefits of Service 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.
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13. The Hidden Benefits of Service 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.
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