Thursday, 23 June 2016

Service Recovery

Service Recovery
Service recovery is the action a service provider takes in response to service failure. By including also customer satisfaction into the definition, service recovery is a thought-out, planned, process of returning aggrieved/dissatisfied customers to a state of satisfaction with a company/service.  Service recovery differs from complaint management in its focus on service failures and the company’s immediate reaction to it. Complaint management is based on customer complaints, which, in turn, may be triggered by service failures. However, since most dissatisfied customers are reluctant to complaints . service recovery attempts to solve problems at the service encounter before customers complain or before they leave the service encounter dissatisfied. Both complaint management and service recovery are considered as customer retention strategies
Top 10 Reasons for poor customer service and their solution
1.    People are not trained.  When an organization does not spend the time to fully train their people the consequence is poor service.
Solution:  Dedicate resources (time and money) for training and reinforcement.   Employees should be fully informed about company goals, the products and services.  Emphasis and training should be focused upon the importance of listening and responding to the customer’s requests.  People can only do the job if they are given the right tools and objectives.  It costs money to train people.  It will cost more if you decide not to train them.
2.    People don’t care.  Selecting the correct personality is crucial for your business success.  Apathetic or self centered personality types have no place in a business that requires customer contact.
Solution:  Focus the selection and evaluation process to identify personalities that do not fit the required profile.  Get the wrong people out immediately, it also sends a clear message to everyone.
3.    Sabotage.  Angry or frustrated employees can actively work to sabotage and try to destroy the company.
Solution:  Keep honest and open communications with employees.  Informally and formally review performance, goals, objectives and feelings to stop potential problems before they reach the customers.  Get these people out of the front lines immediately.
4.    Employees don’t believe in the company, product or service.  If the image, marketing and promotion of the company is quite different from the reality, workers will not be able to sustain a positive attitude in the face of problems they know exist.
Solution:  Be honest.  Work closely with customer service, marketing and quality control to identify real problems and fix them.  Don’t let  marketing advertise over problems, solve them.
5.    Personal problems reflected in work.  When an employee’s personal life is in crisis or out of control, they may exercise control, aggression and negativism toward customers in an attempt to put some part of their life in order.
Solution:  Clear communications with employees:  If their personal life is affecting work performance, talk about it.  Time off, access to counseling or just listening may prevent more serious problems.
6.    Burnt out.  Too much negative, too many complaints can lower a person’s level of commitment and move their positive and helpful attitude to an apathetic one.
Solution:  Constant communication helps to identify who is burning out and why.  Get customer service people together to talk of success and how to deal with the frustrations.  Provide recognition or incentives for excellence in dealing with problems.
7.    Not providing the correct solutions to customers, lack of empowerment.    There is nothing worse than dealing with an employee who listens to a problem, then shrugs and says they have to ask someone else in the company to intervene and provide a solution.
Solution:  Give the people on the front lines the authority, power, tools and ability to solve problems.
8.    Don’t see the benefits – don’t understand their role in the company. 
Solution:  Employees project an image of the company.  They are the company.  They should be reminded of their importance and value to the customer and to the company.  Incentives, recognition, training and constant reinforcement are important.
9.    Apathetic from hearing the same problems over and over.  A fundamental role of the customer service division is to provide constant feedback on how customers view the company, the products and the service.  If this feedback is not analyzed and acted upon by upper management a feeling of apathy and frustration is created.
Solution:  Set up a model and procedure for the accumulation, analysis and implementation of solutions for the problems identified by customer service.
10.    Incentives/salary not tied to results.
Solution:  If you insist that the company depends upon people, and that people are the key to success, implement compensation packages, evaluations and incentives that support and reinforce this.
The Four Steps to Great Service Recoveries
Train your employees to respond to each service failure with a specific stepwise sequence:
1. Apologize and ask for forgiveness: A real apology, not a fakey fake “I’m sorry if you feel that way.”
2. Review the complaint with your customer: turn your customers, in other words, into your customer service consultants, letting them explain what’s gone wrong in the customer experience in the customer’s view and what you should do to fix it.
3. Fix the problem and then follow up: Either fix the issue in the next twenty minutes or follow up within twenty minutes to check on the customer and explain the progress you have made. Follow up after fixing things as well, to show continuing concern and appreciation.

4. Document the problem in detail to allow you to permanently fix the defect by identifying trends.