There is one fundamental reason why organizations that find themselves unable to traverse the higher plain of service delivery. The one element that many service strategists fail to implement- SUCCESSFUL SERVICE RECOVERY.
Some Questions on Service Recovery Answered
What is it that makes service recovery such an enigma?
Why is it so important?
When will organizations realize the importance of this element of service delivery?
How is it implemented?
Let’s explore the service recovery phenomenon.
The most critical factor in increasing one’s customer base and extending the customer life cycle to create customer advocates lies in an organization’s service recovery process. Unfortunately, it is a process so straightforward that even the most advanced service-oriented organizations often overlook it.
A typical organization’s illusion of fine service halts at the act of product handover. Follow-up customer care is subsequently extracted from a generically sculpted manual of product information and internal processes.
This same manual is used as a reference for handling queries and complaints from a customer, but is that adequate? Unfortunately, many companies disassociate themselves from their customers upon product delivery. The “it’s no longer our problem” attitude translates into continuous high budgets on marketing to attract more customers.
If service recovery remains a mystery to businesses and they don’t endeavour to understand it, they will find customers falling through the gaps, ultimately losing them forever. But, on the other hand, solving a customer’s problems or complaints and create such an experience that they feel like they’ve just done business with the most extraordinary people and company in the country!
Service recovery is defined as ensuring the customer remains smiling even after an error or mistake is made. Turning a customer’s disposition around and make them love you more than ever.
Four Steps to Take in Successful Execution of Service Recovery
1. Apologize – Apologize for the mistake or error that had transpired but make sure it is sincere. Without the proper empathetic stimuli in place, the customer will consider it condescending and react worse for it, losing them forever.
2. Solution – Provide a solution or the best alternative. From the front-line service professional perspective, there isn’t always a solution that can be provided, given how organizations are so conscientious about following processes. The ability to creatively problem solve is required here to give the customer a viable alternative solution.
3. Value-add – What can you provide the customer additionally to delight them? Different businesses have different ways of value-adding in the service recovery process. What can your organization offer that costs little to nothing but is of significant value to the customer? From my experience, simple gestures like offering free dessert at a restaurant after messing up my order. Free talk time when my Telco overcharges me. Upgrade my insurance coverage when my insurance company accidentally cancels my insurance policy. Ensure these tools are in place and available as an arsenal for service personnel to use as a powerful service recovery tactics.
4. Analyze – Determine what happened and what can be corrected so it won’t happen again. Many times organizations put service recovery processes in place but forget to uncover the source of the error in the first place. Analyze frequent issues that are creating disgruntled customers. What is the cause of these potentially fatal errors? Can a process be improved? Is there an additional step that can be included in the process? Could this be a frequent customer error, meaning there is a lack of customer education? Thorough analyses have proved to be the “missing piece of the puzzle” in extending the customer life cycle in the many organizations I have had the privilege of working with.
The service recovery component in superior service delivery not only need to be part of the company culture but part of the company DNA. Top-down internalization of the importance of service recovery is essential to drive superior Customer Experience.
When was the last time your CEO met, listened, resolved and walked an unhappy customer to their car? A most memorable sight that I will not soon forget in this lifetime…
Updated in Dec 06, 2024.
In 2021, many organizations struggled with service recovery due to a lack of understanding and training in effective communication strategies and customer relationship management. Service recovery often relied on reactive measures, and the process was viewed as an obligation rather than an opportunity to strengthen customer relationships. However, by 2024, there has been a noticeable transformation in the approach to service recovery.
Organizations are now investing in customer experience training and customer service training Malaysia to equip employees with the necessary skills and knowledge to handle customer complaints effectively. These advancements emphasize proactive service recovery strategies, focusing on building genuine connections with customers, understanding their needs, and creating memorable experiences even after mistakes occur. This shift is essential for fostering long-term customer loyalty and advocacy.
