University of Central

Punjab

Sir Mazhar Hayat

Service Marketing

MBA (1A)
AREEBA TAWAB (22)
LAIBA SAEED (31)
MAIDA RIAZ (42)
WARDA BABAR (58)

SERVICE RECOVERY

REASON OF SERVICE FAILURE

Unavailable when promised.

Delivered late or too slowly.
The outcome may be incorrect
or poor execution.
Staff may be rude or uncaring.
Service equipment may be faulty.

RESPONSES OF CUSTOMERS

Poor customer satisfaction

Customer complaints
Customer leaving
Bad word of mouth
Challenging the firm through legal channels or
other means.

HOW CUSTOMERS RESPOND TO

SERVICE FAILURE

REASONS FOR COMPLAINING

Social
benefits and
pressures

Personal
norms and
belief

Personal
losses and
claims

REASONS FOR NOT

COMPLAINING
Inability
to realize

Time
wastage

Feeling of
Selfblame

Unwillingness to
put effort
Poor
knowledg
e of
complaint
process

TYPES OF COMPLAINERS

Passives
Voicers
Irates
Activists

PASSIVE CUSTOMER
Customers who are not willing to
complaint to the firm or to engage in
third party complaints.

VOICER CUSTOMER
These customers are viewed as
firms best friends.
Voicers dont bring up Problems,
but Opportunities for improvement.

IRATES CUSTOMER
These customers are more angry
with the provider and are less likely
to give the provider a second chance

ACTIVIST
These customers are complaining in
all dimensions the firm, general
public, other users of service or even
third party.

TYPES OF COMPLAINT ACTIONS

On spot complaint
Later complaints
Negative word of mouth
Complain to third party

CUSTOMER RECOVERY
EXPECTATIONS
Monetary
Product repair or service fixed
Full refunds
Partial refunds

Non-monetary
An apology from the firm
Explanation by the firm over failure issue
Assurance by the firm that problem would not be
repeated.

SERVICE RECOVERY STRATEGY

Make
Service
Fail
Safe

Welcom
e and
Encoura
ge
Complai
n

Learn
From
Lost
Custom
er

Act
Quickly

Learn
From
Recover
y
Experie
nce

Treat
Custom
er Fairly

MAKE SERVICE FAIL SAFE

Do it right first time
Fix it properly if it ever fail
Remember there is no third chance
(Berry.L, New York
times ,1999)

WELCOME AND ENCOURAGE COMPLAIN

ACT QUICKLY

Success story.com
New York times

TREAT CUSTOMER FAIRLY

LEARN FROM RECOVERY

EXPERIENCE
Conducting Root cause analysis.
Monitor and track service recovery.

LEARN FROM LOST CUSTOMER

Monitor customer rebuy ratio.

Identify lost customers and reason.
Address the reasons.
http://pizzaturnaround.com/

RESEARCH ARTICLE
http://ahrq.gov/cahps/quality-improveme
nt/improvement-guide/improvement-guide.
html
.
JULY 2015

CONCLUSION