Chapter 7: Service Breakdowns
and Service Recovery
© 2012 by Robert W. Lucas
2
Learning Outcomes
• 7-1 Define what a service breakdown is.
• 7-2 Apply knowledge of behavioral styles in difficult
customer situations.
• 7-3 Recognize different types of difficult customers
and effectively deal with them.
• 7-4 Use the emotion-reducing model to help keep
difficult situations from escalating.
• 7-5 Explain why customers defect.
© 2012 by Robert W. Lucas
3
Learning Outcomes
• 7-6 Develop effective strategies for working with
internal customers.
• 7-7 Identify strategies for preventing customer
dissatisfaction and problem solving.
• 7-8 Explain the six steps of the problem-solving
model.
• 7-9 Implement a front-line service recovery strategy,
and spot roadblocks to service recovery.
© 2012 by Robert W. Lucas
4
Service Breakdown
• Define
– Occur daily in all types of organizations
– Happen whenever the product or service delivered fails to
meet the customer expectations
– Customers today are better educated (technology has helped
with this) and more discerning
• Examples
• Expectations for people
• Expectation for products
© 2012 by Robert W. Lucas
5
Service Breakdown
• Define
– Occur daily in all types of organizations
– Happen whenever the product or service delivered fails to
meet the customer expectations
– Customers today are better educated (technology has helped
with this) and more discerning
• Examples
• Expectations for people
• Expectation for products
© 2012 by Robert W. Lucas
Service Breakdown and style
6
• Behavioral Style
– Define
– RIDE
– Strategies
© 2012 by Robert W. Lucas
Difficult Customers
7
• Types of difficult customers
– Examples
• Dissatisfied
• Demanding
• Rude
• Indecisive
• Talkative
• Internal with special requests
• With disability
• Other language
© 2012 by Robert W. Lucas
Handling Difficult Customers
8
• Avoid Stereotyping
• Strategies for dealing with each type
© 2012 by Robert W. Lucas
The Emotion Reducing Model
9
• How the model works
• How to use it
© 2012 by Robert W. Lucas
Reasons for Defection
10
• What is defection?
• Examples
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–
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Poor Services
Complacency
Inappropriate complaint resolution
Unmet needs
© 2012 by Robert W. Lucas
Working with Internal Customers
11
• Working with internal customers
• Strategies to use
–
–
–
–
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Stay connected
Meet all commitments
Don’t sit on emotions
Build a professional reputation
Adopt a good neighbor policy
© 2012 by Robert W. Lucas
Preventing dissatisfaction
12
Strategies to prevent dissatisfaction
• Think like the customer
• Pamper the customer
• Respect the customer
• Exceed expectations
© 2012 by Robert W. Lucas
Problem Solving Process
13
• Uses/examples
• The problem solving model
–
–
–
–
–
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Identify the problem
Collect data
Identify alternatives
Evaluate alternatives
Make a decision
Monitor results
© 2012 by Robert W. Lucas
14
Strategies for Service Recovery
• Examples where you might need a strategy
• Steps to recovery
–
–
–
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Apologize
Take immediate action
Show compassion
Provide compensation
Conduct follow up
© 2012 by Robert W. Lucas