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Service recovery is, according to Fitzsimmons (2011 - p136), a "Service recovery converting a previously dissatisfied customer into a loyal customer." [1] It is the action a service provider takes in response to service failure. [2] 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 [3] 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. [4] However, since most dissatisfied customers are reluctant to complain,[5][6] 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 [7] Recently, some researches proved that strategies such as value co-creation, follow up, etc. can improve the effectiveness of service recovery efforts [8]
it is a highly essential and the company must pay cost for it.
thanks fro the invite - Recovery is the key word here. You loose one customer - you made have impact or more possible opportunities
Firstly identify what the customer requires from the interaction . If it is a dispute over billing - perhaps you could offer to meet1/2 way or offer payment terms.
Secondly listen and hear the customer and what is actually being communicated. Is the problem really a customer problem , or is it in the company process that might need reviewing to prevent it occurring again.
lastly, thank them regardless of the outcome for their patronage. Even if you don't agree with the outcome, the customer has had an interaction an the last impression might be the only think that prevents bigger issues.
Can you explain further this question to answer better way!
