Fixing Service Failures Chapter 13 SERVICE FAILURES TYPES
- Slides: 21
Fixing Service Failures Chapter 13
SERVICE FAILURES: TYPES, WHERE, AND WHY
Types of Service Failures • Service product failures • Failure to meet explicit or implicit customer requests • Failures caused by employee actions or inactions (continued)
Types of Service Failures • Failures caused by other guests, random events, or circumstances beyond control of organization
Critical Incidents During Service Encounters • Failures in service, itself • Negative employee actions, attitudes, or behaviors • Unsatisfactory employee response to service failure
Dimensions of Failure • Customer failure • Where failures happen • Severity of failure and recovery
THE IMPORTANCE OF FIXING SERVICE FAILURES
Price of Failure • Costs money to lose customer • Lost revenue – Those who do not return – Those who might have come but will not because of negative word-of-mouth (continued)
Price of Failure • Unhappy customers twice as likely to spread bad versus happy customers who spread good
Customer’s Response to Failure • • • Service recovery Never to return Complaints Bad-mouthing organization Retaliation Worst-case scenario – Avenger
Value of Positive Publicity: Bad. Mouth versus Wow • Credibility – People telling people – Anonymous testimonials • Evangelists – Exceeding expectations – Planning for failure
Dealing with Service Failures • How recovery is handled – Message to employees – Example: • British Airways (continued)
Dealing with Service Failures • Looking for service failures – Complaint as monitoring device – Encouraging complaints – Body language as complaint – Do not forget to ask
RECOVERING FROM SERVICE FAILURE
How to Handle a Service Failure • Do something quickly • Benefits for quick recovery: – Reduces overall expense of retaining guests – Less expensive to fix problem on-the-spot – More likely guest will stay with organization
How Customers Evaluate Recovery Efforts • • • Distributive justice Procedural justice Interactional justice Informational justice Interactional versus distributive versus informational versus procedural justice
Service Recovery System Analysis 1. 2. 3. 4. 5. 6. Identify failures and put in categories Assign reasons for each type for failure Determine why problem occurred Select appropriate recovery strategy Implement recovery Review recovery efforts – Follow-up to see if successful
Characteristics of a Good Recovery Strategy • Ensure failure is addressed quickly • Communicate clearly to employees • Should be flexible enough to accommodate different types of failures and different expectations
Customer Defines Failures • • Not making it better makes it worse Costs of failure to guests Making it right not being enough Being wrong with dignity
Matching the Recovery Strategy to the Failure Severity of Failure • Nature and severity • Causes of failure Relatively Apologize and offer red severe carpet treatment failure Apologize and provide help to extent possible Relatively mild failure Apologize and extend sympathy Apologize and replace Organization caused failure Guest caused failure Cause of Failure
From Bad to Good • Learning from failures • Service recovery – From Ow! to Wow! • Successful service recovery
- Fixing service failures
- Bid rigging vs price fixing
- Is riveting a permanent joint
- Fused sentence.
- Barriers to entry oligopoly
- Price fixing definition
- High suction backgrounds plastering
- Sentence fragments
- What is a good source of nitrogen
- Rails definition
- Deepfix: fixing common c language errors by deep learning
- Fixing bnr
- Macroprudential intermediation ratio
- Metal lath uses
- Which progressive reform outlawed price-fixing
- Failures of the articles of confederation
- Engineering ethics failures
- Pitot static failures
- Grading the articles of confederation
- Failures of the articles of confederation
- Rpc semantics in the presence of failures
- Guided reading activity 7-3