Chapter 11 Regaining Customer Confidence Through Customer Service

Objectives 1. To provide an overview of customer service 2. To access customer service

Outline I. Introduction II. Customer Service III. Customer Service as a Strategic Function IV.

Customer Service • Customer service refers to all customerprovider interactions other than proactive selling

Customer Service as a Strategic Function • Customer Service as an Information Resource •

Developing a Customer Service Culture • When the customer service function is elevated to

Developing a Customer Service Culture (cont’d) • Service organizations and manufacturing organizations are realizing

Developing a Customer Service Culture (cont’d) Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights

The Need for Service Recovery • Service recovery is the effort an organization expends

The Need for Service Recovery (cont’d) • The High Cost of Lost Customers –

The Need for Service Recovery (cont’d) • A moment of truth is any contact

Steps to Service Recovery A. Apology B. Urgent Reinstatement C. Empathy D. Symbolic Atonement

Hidden Benefits of Service Recovery • There are several ways systematic service recovery programs

Web Sites • Stew Leonard’s (http: //www. stew-leonards. com), p. 161 • Angie’s List

Web Sites (cont’d) • Sewell Village Cadillac (http: //www. sewell. com), p. 166 •

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Objectives 1. To provide an overview of customer service 2. To access customer service as a strategic function 3. To explore how to develop a customer service culture 4. To discuss why organizations should plan for service recovery 5. To present the steps to service recovery 6. To explore the hidden benefits of service recovery Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1|2

Outline I. Introduction II. Customer Service III. Customer Service as a Strategic Function IV. Developing a Customer Service Culture V. The Need for Service Recovery VI. Steps to Service Recovery VII. Hidden Benefits of Service Recovery VIII. Summary and Conclusion Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1|3

Customer Service • Customer service refers to all customerprovider interactions other than proactive selling and the core product delivery offering that facilitate the organization’s relationship with its customers. Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1|4

Customer Service as a Strategic Function • Customer Service as an Information Resource • Customer Service as an Input for Service Design Improvements • Customer Service as an Opportunity to Enhance Customer Relationships Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1|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 (http: //www. americanexpress. com) noted, "A dissatisfied customer is an opportunity. ” Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1|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 complaints. Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1|7

The Need for Service Recovery • Service recovery is the effort an organization expends to win back customer goodwill once it has been lost due to service failure. Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1|9

The Need for Service Recovery (cont’d) • The High Cost of Lost Customers – Losing customers is expensive • When Is Service Recovery Needed? – Each point at which the customers encounter the service organization may influence their perception of the service’s excellence (the moment of truth) • Other Means of Identifying Recovery Needs – Many ways to discern when service recovery efforts may be needed Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1 | 10

The Need for Service Recovery (cont’d) • A moment of truth is any contact point with a service organization that the customer uses to evaluate the service delivery. Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1 | 11

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 – 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 Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1 | 13

Web Sites • Stew Leonard’s (http: //www. stew-leonards. com), p. 161 • Angie’s List (http: //www. angieslist. com), p. 161 • Aer Arann (http: //www. aerarann. com), p. 163 • Sprint (http: //www. sprint. com), p. 163 • American Express (http: //www. americanexpress. com), p. 163 Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1 | 14

Web Sites (cont’d) • Sewell Village Cadillac (http: //www. sewell. com), p. 166 • The Consumerist (http: //www. consumerist. com), p. 167 • Consumer Reports (http: //www. consumerreports. com), p. 167 • Consumers Union (http: //www. consumersunion. com), p. 167 • Holiday Inn (http: //www. ichotelsgroup. com), p. 168 • Scandinavian Airlines (SAS) (http: //www. scandinavian. net), p. 168 Fisk/Grove/John-4 e, Copyright © Cengage Learning. All rights reserved. 1 | 15