Service Recovery by Operational Excellence Consulting

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Presentation Description

When things go wrong, customer expectations tend to drop while fear and anger rise. Many service providers tend to avoid the issue, hiding from the damage, minimizing cost and shifting the blame to others. With the right approach and understanding, you can regain customer satisfaction and loyalty and make your organization even stronger. In this training powerpoint, you can educate customer service employees or new hires on the key concepts and principles of service recovery, learn how to handle difficult customers and acquire the five-step service recovery skill. Learning Objectives 1. Understand the key concepts of service recovery 2. Understand the principles of effective service recovery systems 3. Understand why problems are opportunities 4. Acquire knowledge on how to make it easy for customers to complain 5. Acquire knowledge on how to handle difficult customers 6. Apply the five steps of service recovery skill ​ Contents 1. Introduction to Service Recovery 2. Principles of Effective Service Recovery Systems 3. Problems are Opportunities 4. Making it Easy for Customers to Complain 5. Handling Difficult Customers 6. Five Steps of Service Recovery To download this complete presentation, visit: http://www.oeconsulting.com.sg

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Presentation Transcript

Slide1:

© Operational Excellence Consulting. All rights reserved. Service Recovery

Learning Objectives:

Learning Objectives By the end of this program, you should be able to: Understand the key concepts of service recovery Understand the principles of effective service recovery systems Understand why problems are opportunities Acquire knowledge on how to make it easy for customers to complain Acquire knowledge on how to handle difficult customers Apply the five steps of service recovery Copyrights of all the pictures used in this presentation are held by their respective owners.

Contents:

Contents Introduction to Service Recovery Principles of Effective Service Recovery Systems Problems are Opportunities Making it Easy for Customers to Complain Handling Difficult Customers Five Steps of Service Recovery NOTE: This is a PARTIAL PREVIEW . To download the complete presentation, please visit: http:// www.oeconsulting.com.sg

Introduction:

Introduction It is inevitable that things will go wrong When this happens, customer expectations tend to drop while fear and anger rise Many service providers tend to run away, hiding from the damage, minimizing cost and shifting the blame to others With the right tools and understanding, you can regain customer confidence and make your organization even stronger

Customer Response Categories to Service Failure:

Customer Response Categories to Service Failure Service Encounter Is Unsatisfactory Take No Action Take Some Form of Private Action Take Some Form of Public Action Take Legal Action to Seek Redress Complain to a Third Party Complain to the Service Firm Negative Word of Mouth Defect (switch p rovider) A ny One or a Combination of These Responses Is Possible

Why Customers Get Angry:

Why Customers Get Angry Did not get what was promised Got something and it did not work correctly Service was slow or sloppy Were treated rudely or with indifference

What is Service Recovery?:

What is Service Recovery? Service recovery is the action a service provider takes in response to service failure It is a process of returning dissatisfied customers to a state of satisfaction so as to promote customer retention

What Does Service Recovery Involve?:

What Does Service Recovery Involve? Solving the customer’s problem quickly and fairly Offering the customer some kind of compensation Following up to assure that the customer is satisfied Continuous improvement

Benefits of Service Recovery:

Benefits of Service Recovery Positive influence on customer satisfaction Improves word-of-mouth behavior Builds customer loyalty Increase customer profitability Provides organizational learning

Common service recovery mistakes:

Common service r ecovery m istakes Managers disregard evidence that shows how service recovery provides a significant financial return Companies do not invest enough in actions that would prevent service issues Customer service employees fail to display good attitudes Organizations fail to make it easy for customers to complain or give feedback

“Your most unhappy customers are your greatest source of learning.” - Bill Gates:

“Your most unhappy customers are your greatest source of learning.” - Bill Gates

Principles of effective service recovery systems:

Principles of effective service recovery systems Make it easy for customers to give feedback Service recovery should be proactive Recovery procedures need to be planned Recovery skills must be taught Recovery requires empowered employees Providing service guarantees

Components of an effective service recovery system:

Components of an effective service recovery system Do the Job Right the First Time Effective Complaint Handling Identify Service Complaints Resolve Complaints Effectively Learn from the Recovery Experience Increased Satisfaction & Loyalty Conduct Root Cause Analysis Develop Effective System and Training in Complaints Handling Conduct Research Monitor Complaints Develop “Complaints as Opportunity Culture” Close the Loop via Feedback + =

“Failure is success, if we can learn from it.” - Malcolm Forbes:

“Failure is success, if we can learn from it.” - Malcolm Forbes

Common customer complaints…:

Common c ustomer complaints… Wrong information Poor customer service attitude Overpricing Lack of adequate information Delays Unresponsiveness of service providers

Problems can be good for you!:

Problems can be good for you! Identify where your procedures are a pain in the neck and need to be simplified Reveal information that is lacking, erroneous or out of date

Problems can be good for you!:

Problems can be good for you! Identify staff who need more training or closer supervision Get important news straight to the boss’s desk (complaints have a way of getting noticed )

“One of the surest signs of a bad or declining relationship with a customer is the absence of complaints. Nobody is ever that satisfied, especially over an extended period of time.” - Theodore Levitt:

“One of the surest signs of a bad or declining relationship with a customer is the absence of complaints. Nobody is ever that satisfied, especially over an extended period of time.” - Theodore Levitt

Make it easy for customers to complain:

Make it easy for customers to complain Provide comment cards at key points of customer contact Put the collection box in plain view Print a statement on the cards expressing your genuine appreciation for customer feedback, promising a speedy reply

Make it easy for customers to complain:

Make it easy for customers to complain Welcome feedback on your website Make it easy for customers and visitors to send you an email message Do not require them to fill out a detailed database before giving you a piece of their mind

Exercise: Your personal service experience:

Exercise: Your personal service experience Think about the last time you experienced a less- than-satisfactory service experience. Did you complain ? Why ? If you did not complain, explain why not . Time: 10 mins

“When everything seems to be going against you, remember that the airplane takes off against the wind, not with it.” - Henry Ford:

“When everything seems to be going against you, remember that the airplane takes off against the wind, not with it.” - Henry Ford

Handling Difficult Customers:

Handling Difficult Customers Difficult customers are those that fall outside the comfort zone There are three categories of difficult customers: Indecisive customers Insistent (demanding) customers Irate (angry) customers

Five Steps of Service Recovery:

Five Steps of Service Recovery The five steps of service recovery skill are designed to help you: Solve a problem Restore the customer’s comfort

5-Step Service Recovery Skill:

5-Step Service Recovery Skill ACKNOWLEDGE the situation and the discomfort APOLOGIZE for the discomfort ACCEPT responsibility for helping the customer ADJUST to solve the problem ASSURE the problem has been solved

Exercise: Recovering from a complaint:

Exercise: Recovering from a complaint Instructions: Identify a complaint that you find difficult to handle. Write out what you would say to the customer to: Acknowledge the problem and the discomfort it is causing. Time: 10 mins

Summary :

Summary It is inevitable that things will go wrong Problems are opportunities for improvement Make it easy for customers to complain and provide feedback Five steps (A’s) of service recovery Improve the product and/or service continuously to “do it right the first time!”

About Operational Excellence Consulting:

About Operational Excellence Consulting

About Operational Excellence Consulting:

About Operational Excellence Consulting Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. The firm’s mission is to create business value for organizations through innovative operational excellence management training and consulting solutions. OEC takes a unique “beyond the tools” approach to enable clients develop internal capabilities and cultural transformation to achieve sustainable world-class excellence and competitive advantage. For more information, please visit www.oeconsulting.com.sg

END OF PREVIEW:

END OF PREVIEW To download this presentation, please visit: www.oeconsulting.com.sg

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