Ch13 Service Recovery

Chapter 13 – SERVICE RECOVERY Chapter 13 focuses on techniques and strategies for recovering from a breakdown in customer service. It is important that service providers understand how to accomplish recovery and to fix something that is not working for customers from a service standpoint. Chapter Outline From the Frontline Learning Objectives Quick Preview What is Service Recovery? What is a Service Breakdown? Causes of Service Breakdowns Organizational Factors Human Resources Organization/Structure Processes/Programs Product/Service Design and Delivery Internal Communications Technological Support Systems Standards Employee Factors Communication Skills Knowledge Attitude Technical Skills Customer Factors Failure to Use Product or Service Information Correctly Failure to Follow Through Reasons for Customer Defection Poor Service and Complacency Inappropriate Complaint Resolution Unmet Needs Unfair Treatment Inadequate Systems Techniques for Preventing Dissatisfaction Think Like a Customer Pamper Customers Respect the Customer Focus on the Customer React to remarks or actions Empathize Take action Reassure or reaffirm Follow up Exceed Expectations Implement a Service Recovery Strategy Apologize, Apologize, Apologize Take Immediate Action Show Compassion Provide Compensation Conduct Follow-up Roadblocks to Service Recovery Not Listening Lack of Respect Poor or Inadequate Communication Inadequate or Outdated Materials or Equipment Lack of Training Work Conflicts Chapter Summary Service in Action Key Terms and Concepts Search It Out Collaborative Learning Activity Face to Face Planning to Serve Instructional Suggestions In this chapter, students will have an opportunity to identify causes for service breakdown and determine a variety of ways to prevent and/or recover from such breakdowns. As you go through the chapter material, share additional ideas and materials along with personal experiences. Also, solicit input from students. Some options for enhancing the material in the chapter include: Have students research service recovery policies (e.g. return/exchange policies or other actions taken following a service breakdown) for companies in your area and report back to the class. Have representatives from local organizations come in to discuss their practices following a service breakdown. Lesson Notes Instructor Note 13-1: Show PowerPoint 13.1 – Service Recovery The following are suggested instructional approaches related to Chapter 13 - Service Recovery that you could use to facilitate the class. QUOTE You may want to draw attention to the quote and ask for reactions to it. Instructor Note 13-2: Show the chapter objectives with PowerPoint 13.2 - Learning Objectives and briefly discuss how you will address each objective throughout the chapter (e.g. strategies, support materials, activities). Also, discuss any other chapter content-related information necessary. Learning Objectives At the end of this chapter, and when applying the information within, you will be able to: Define what a service breakdown is. Discuss the causes of service breakdowns. Determine why customers leave following a service breakdown. Identify strategies for preventing customer dissatisfaction. Implement a frontline service recovery strategy. Spot roadblocks to service recovery. Quick Preview Instructor Note 13-3: Have students complete the Quick Preview quiz, then go over their answers and tie into the chapter content. Tie them into chapter content and any other items related to what you will cover in the class. Quick Preview Answers: 1. True 2. False 3. True 4. False 5. False 6. True 7. True 8. False 9. True 10. True 11. True WHAT IS SERVICE RECOVERY? Instructor Note 13-4: Show PowerPoint 13.3 - Service Recovery which has a definition of the concept on it. Discuss the service recovery process generally. As part of the discussion, ask students what their experience has been with service recovery as a service provider. Effective service recovery occurs when an organization or service provider is able to solve a customer problem, make restitution, or regain trust following a breakdown in the quality, quantity, or type of product or service delivered. Many times your customers will have expectations that they will receive products, services, or other deliverables at a certain level. When they get something else, they can become frustrated, angry, and/or dissatisfied. The challenge is to recognize that many customers will not tell you they are dissatisfied. That is where the ability to read their non-verbal cues and ask effective questions, as you read in chapters 3 and 4 is paramount to your success. If you do not identify a customer issue and take immediate steps to recover or make amends, you could lose a valuable customer. They will more than likely tell others who might also “defect,” or if they are potential customers, never visit your place of business. So in a way, you sometimes have to be part fortune teller (viewing the customer through a crystal ball), detective (to identify their real feelings), and problem-solver in order to deliver effective customer service. And, if you become proficient at the service recovery technique, you may even be able to turn negative situations into an additional sale or upgrade in products and services. WHAT IS A SERVICE BREAKDOWN? Instructor Note 13-5: Show the definition of Service breakdown on PowerPoint 13.4 – Service Breakdown. Discuss what causes them based on text content and your own experiences. Elicit ideas from students. Service breakdowns occur daily in many organizations. They happen whenever the product or service that is delivered fails to meet customer expectations. In some cases the product or service delivered may function exactly as it was designed, however, if the customer acts upon a misperception as to how the product or service “works,” a breakdown occurs. Here are some examples of service breakdowns: A waiter serves a meal containing an ingredient not anticipated by the customer, or one that the customer specified should not be added (A note of caution --- some people have strong allergies to certain items that could lead to deadly results and a huge liability for you and your organization if they are served such products. If you are in food service be vigilant in monitoring orders when customers make the latter request. Check food and drinks before you deliver them to your customer to ensure that kitchen or bar staff did not forget the special request. Also, do not simply “take an item off” if it was put on inadvertently. Juices and remaining fragments can cause medical complications and this is not viewed as professional or acceptable by many customers). A hotel room is not available when the customer arrives (In some cases a stated check in time may exist and the customer may be early. In such cases make every effort to accommodate him or her). A car repair is not completed at the time promised, or is done incorrectly. An additional cash register is not opened even though there are eight to ten customers waiting in a line and cashier staff are available in the store (Some companies have signs that state they will open another register if more than a specified number of customers are waiting). According to the customer, room service food was delivered cold (Basically, not at the degree of warmth desired or expected). A coworker expects your assistance in providing information needed for a monthly report, but you failed to get it to her on time or as agreed. A manufacturer does not receive a parts delivery as promised by you and an assembly line has to be shut down. A garment you needed for a meeting returns from the laundry with broken buttons and cannot be worn. A repairperson does not arrive at the scheduled time to fix your leaking faucet. A plane, train, or ferry does not leave as scheduled and a connection was missed as a result. In any of the situations mentioned, customers have not received what they were promised, or at least what they perceived they were promised. This perception constitutes a breakdown in service or product. Unfortunately, most instances such as these go unreported by customers. This prevents businesses from making necessary changes or adjustments to prevent similar breakdowns in the future. Additionally, when incidents are reported, there are many instances where they are not effectively handled by organizations. TARP, a customer service research and consulting firm in Arlington, Virginia, has published numerous surveys on the topic of complaint handling in the United States. A landmark study commissioned by the U.S. Office of Consumer Affairs in 1979 and updated in 1986 demonstrated the value of effective complaint resolution when dealing with customers. These findings have been validated in the years since 1986 throughout a wide variety of various industries. Instructor Note 13-6: Discuss some of the causes of service breakdowns listed in the text. Use Figures 13.1 – What Complaint Research Shows , 13.2 – Many Customers Do Not Complain, and 13.3 – Many Customers Are Not Happy With Business’ Response To Their Complaints to emphasize the results of service breakdowns and the need to address them quickly and effectively. Instructor Note 13-7: Divide students into equal groups and give the 5-10 minutes to brainstorm answers to Work It Out 13.1 – Service Breakdown Examples. Afterwards, have them share their group responses to the remainder of the class. Discuss their responses. CAUSES OF SERVICE BREAKDOWNS Instructor Note 13-8: Use PowerPoint 13.5 - Service Breakdowns to overview the three categories of causes, then address each one individually using subsequent PowerPoint slides. Humans make mistakes. As a service provider, mistakes often appear glaring to customers, who can be very demanding and unforgiving at times. The best you can hope for when something goes wrong is that you can identify the cause and remedy it quickly to your customer’s satisfaction. By accomplishing this, you can likely cultivate and maintain the customer loyalty discussed in the last chapter. There are many reasons for you and your organization to take action to remedy a situation that has gone wrong. Some typical reasons that necessitate service recovery action are: A product or service did not deliver as expected. A promise was not kept (e.g. failure to follow-up). A deadline was missed. Customer service was not adequately provided (the customer had to wait excessively or was ignored). A service provider lacked adequate knowledge or skills to handle a situation. Actions taken by your or the organization inconvenienced the customer (e.g. a lab technician took blood during a patient’s visit and the sample was mishandled, requiring the patient to have to return for a retest). A customer request or order was not handled properly (e.g. wrong product or service delivered). Attempts to return or exchange an item were hampered by policy or an uncooperative employee. A customer was given the “runaround” being transferred to various employees or departments and being required to explain the situation to each individual. The customer was treated (or perceived they were) unprofessionally or in a rude manner. Corrective action was taken for any of the above reasons and the customer is still not satisfied. Actually, there are numerous factors in the service process that can lead to a failure to meet customer expectations. Ultimately, they can all influence service recovery. Generally, these factors fall into three categories -- organizational, employee, or customer. Organizational Factors The term organizational factors relates to the following: - Organization/structure that is in place. - Standards and values of the organization. - Processes and programs used. - Internal communications systems. - Human resource processes, procedures, and policies - Product/service design and delivery. - Technological support systems. When any of these factors are not functioning effectively, they can detract from service quality and lead to service breakdowns. While you may not have control over all the components of the organization and how they are managed, you should still be aware of all the elements involved (e.g. the system for ordering and delivering products and services, procedures for resolving customer complaints, or policies for handling a variety of service situations). Additionally, when you recognize some component of the service process that is failing, take the initiative to make recommendations for change or at least point out the breakdown to a supervisor or team leader. The reason for taking ownership is a selfish one. As a frontline person, you play a crucial role in implementation of many of these factors. As such, you become the organization in the eyes of a customer. When customers yell at you because they perceive something did not go as promised or expected, they are usually yelling at the organization through you. That is why you must control the tendency to internalize their anger. Instead, it is important for you to objectively continue to listen to what they have to say in order to get information vital for resolving the issue. Instructor Note 13-9: Use PowerPoint 13.6 – Causes of Breakdowns (Organizational Factors) to review the various elements of the organization that can cause service breakdown. Spend time soliciting examples and offering your own for each factor. There are a number of organizational factors over which you have no direct control, but that impact you and your customers. These include the following: Human resources Human resources can make or break an organization. If your organization does not have the right number and quality of employees, service cannot be delivered effectively to satisfy customer needs and service breakdowns can occur. Many businesses struggle to attract and hire the best-qualified applicants. The screening, selection, training, performance appraisal, and compensation of employees who interact with customers are crucial for an organization. Care should be given by managers to develop a job description that focuses on the competencies required for the position. This will help ensure the right person is hired for a job. Unfortunately, many people view the customer service industry as an entry point into an organization and not as a career. For that reason, once hired, they immediately set about trying to position themselves to move to another department. This creates a revolving door type syndrome for organizations – hiring, training, transferring, finding replacements, training, etc. If you are working in a customer service job, you can help reduce turnover and ensure the “right” people are hired to provide service. You can accomplish this openly discussing your regular job tasks with your supervisor or team leader. Often, over time, employees take on tasks because it is easier for them to do so than ask someone else, or because the job responsibilities evolve when other changes are made in policies or procedures. Your supervisor or team leader is usually aware of these modifications, however, since they are minor, no change is made to your job description. Over a period of time, if many of these occur, your responsibilities may evolve far beyond the written job description. That is why you need to know what your job description defines as your duties and bring major shifts to the attention of your supervisor. This is important because your performance is typically evaluated based on established goals and your job description. Additionally, job descriptions are used to recruit and hire additional staff to assist you. It is to your advantage for whoever hires for your organization to have an accurate picture of skills required so that he or she can adequately screen applicants and choose the best qualified to do the actual job. This is to your advantage since, if they hire a person based on an outdated job description, you may end up training them on the job. Training is also an important human resource. From an employee professional development standpoint, most large organizations spend millions of dollars each year training and updating employee knowledge, skills, and attitudes. Such efforts help companies stay competitive. Organization/Structure Relationships between members of departments or cross-functional teams are typically clearly defined. Reporting structure, levels of empowerment (what employees are authorized to do and levels of decision-making) and integration of functions, are examples. This may not be true in your organization. If not, go to your supervisor and ask for an explanation of the reporting hierarchy, as well as the customer-provider chain (people/groups to which you supply and from which you receive products, information, and services). A thorough understanding of these relationships is important in allowing you to provide the best service possible to your customers. Additionally, such knowledge allows you to follow up in cases of service breakdown by knowing which department or person to contact and to recognize the limits of what you can and cannot do to satisfy customer needs or complaints. Processes/Programs The types of processes and programs in place within an organization tie into the standards and values for that organization. These processes and programs ultimately influence the way service is delivered to customers. For example, the way complaints are handled, sales or promotional tools are used, products and services are delivered, and how billing, advertising, and consumer/customer communications work, each send powerful messages to your customers about whether the organization really cares about customer satisfaction. Individually or collectively, these processes make up the way an organization functions. They are tools to help you deliver customer service and satisfaction. Your knowledge of each process and procedure allows you to work within your organizational system to access information, people, and resources necessary to answer customer questions and ultimately prevent service breakdowns. When you are not aware of various programs or other elements of the system, you will likely have trouble doing your job well. As a front line service provider, you must have thorough knowledge of how special sales and promotions, policies and procedures, and other systems function in service delivery. This allows you to consistently and correctly address customer questions or complaints. Failure to understand these functions can lead to miscommunication and customer dissatisfaction. Product/Service Design and Delivery Factors in this category are quality levels, available options, variety of offerings performance, and availability. These factors often determine whether customer get what they perceive that they deserve or need. To effectively promote, sell or service products or provide quality service levels, you need a comprehensive knowledge of what your organization offers. You must have knowledge of processes related to these areas and also be able to effectively discuss them. Remember you represent the organization and your customers expect you to have answers. Internal communications Internal communications involves the means for communicating within the organization to share information, solicit support, offer guidance, and train employees. Examples are newsletters, meetings, bulletin boards, E-mail, voicemail, and publications. Since communication among members of your organization is crucial to your success. You need to be able to freely and regularly exchange product and service information, and to network with others through a variety of methods. The more access you have to data, the better informed you become while at the same time becoming more capable of handling a variety of customer encounters. Ultimately, the information you access can help you prevent customer service breakdowns. Technological Support Systems Computers, software, telecommunications, and other technology, along with the technical support staff to maintain the processes are crucial in today’s service environment. All of these play an intricate role in allowing the exchange of information, problem solving, effective customer service, and keeping your organization competitive. In the age of the "information highway," you need to be competent in using technology-based information systems, in order to gain and provide information to effectively and efficiently deliver quality service. Customers don't want to hear, "I'm sorry, I can't bring up your file, my computer is down." You need to know how to access information or quickly find the person who can. In addition, educating yourself on possible alternative information sources in helpful. Speak with your supervisor or team leader and peers to find out if other ways exist for accessing information when technology fails. If there are such files or systems, also learn to use them in order to give your customers timely information and service. Standards/Values Standards/values are tenets or guidelines that impact the way employees view the organization and operate. They also influence the way others outside the organization perceive you and the organization. For example, do you and your company truly value customers, reflected in an attitude of meeting the needs/demands of the average customer? Do systems, products and services support efforts to satisfy the most demanding customer? If you answered yes, then you are on your way to flourishing in a competitive service market. If not, start analyzing what might need improvements and make recommendations for change to your supervisor or team leader. By focusing on an average customer, the organization is saying, "we're happy to just get by with average service and results." Customer perception could be that your organization and/or you don't really care about satisfaction, only profit and survival. Instructor Note 13-10: ASK: What organizational factors have you encountered as a customer that created a service breakdown? How did service providers address these factors? How can you use the insights gained from such experiences to improve the service you provide to your customers? Discuss the potential for service breakdown when providers are not knowledgeable. Have students spend fifteen minutes completing Worksheet 13.1 – Preventing Organizational Breakdowns (http://www.mhhe.com/lucas05) then use their responses as a basis for classroom discussion. Employee Factors These elements relate to your own abilities, competencies, knowledge levels, and expertise in dealing with others. Instructor Note 13-11: Use PowerPoint 13.7 – Causes of Breakdowns (Employee Factors) to discuss how such factors can cause service breakdown. Spend time soliciting examples and offering your own for each factor. Communication Skills Your verbal, non-verbal, and written communication and listening skills will often determine whether you'll have to initiate a service recovery strategy. For example, if you effectively communicate usage instructions for a piece of equipment you sell, a customer may not have difficulties once he or she gets home. This avoids customer frustration and reduces complaints. This can result in time and effort saved for you and the customer. It also results in money saved for the organization while maintaining good rapport with the customer. Knowledge To effectively serve your customers you need a strong knowledge of products, services, organizational structure and goals, processes, procedures, and how to effectively provide service. Additionally, a strong understanding of some of the issues discussed in Part II of this book (e.g. interpersonal and written communication skills, diversity, and use of technology) and is very helpful in gaining and maintaining a solid customer-provider relationship. To gain some of the knowledge that you need, you should become an avid reader of such things as promotional literature, product materials (e.g. warranties and owner’s manuals), and policies. In addition to reading, talk with others in the organization about how various departments and processes work. If you can, get your hands on actual products and learn how they operate. All of these will help give you a more in- depth perspective and will provide you with information to better serve your customers. Ultimately, your knowledge will help you to quickly and effectively identify customer needs and offer the right solution to address them. Attitude The way you perceive your organization, self, job, and customers determine much about the quality of service you provide. For example, an upbeat, positive focus will allow you to look forward to and enjoy each customer encounter (positive and negative). This leads to a sincere effort to identify and satisfy customer needs. Attitude is often displayed through your tone, appearance, and general approach to serving your customers. Technical Skills Your ability to safely and efficiently use equipment and systems that support service (e.g. computer, telephones, facsimile machines, photocopiers, and other job-related machinery, and equipment) is important from an efficiency and safety standpoint and also from a service perspective. As you have read, technology can greatly enhance your ability to serve more customers in a quality fashion and quicker. Additionally, since technology is so commonplace, your customer anticipates and expects that you will have access to and know how to effectively operate various types of equipment. Depending on your position, you may depend heavily on non-office types of equipment to do your job and provide products or services to customers (e.g. construction equipment, power tools, electric pumps, print shop equipment, or medical diagnostic technology). Through your knowledge and expertise in using such equipment you will be able to quickly provide products and services to satisfy your customers without unnecessary delays or service breakdowns. Instructor Note 13-12: Instruct students to review the employee factors in the text, then develop a list of strategies for reducing possible negative impacts from each. Use Worksheet 13.2 – Reducing the Negative Impact of Employee Factors (http://www.mhhe.com/Lucas05) After everyone has finished (approximately 10 minutes) go over his or her answers as a group. Customer Factors Think about the employee factors you have just reviewed. Which ones have you witnessed from a personal standpoint as either a customer or employee? What can be done to reduce negative impacts from each of the factors? List your observations and strategies for reduction of negative impact below. Instructor Note 13-13: Use PowerPoint 13.8 – Causes of Breakdowns (Customer Factors) to discuss how customer factors can cause service breakdown. Spend time soliciting examples and offering your own for each factor. Failure to use Product Service Information Correctly No matter how meticulous you are in explaining information, customers sometimes fail to listen to or follow instructions that you give for proper product or service usage. By disregarding or missing key information relayed verbally or in writing your customers increase the likelihood of improper use, and therefore dissatisfaction. Customers also increase the possibility of damage or injury when instructions are ignored. Subsequently, they may lodge a complaint of defective product or ineffective service. Your objective in providing exceptional service, while raising your rating on the Relationship Rating Scale, should be to practice active listening and read your customer’s nonverbal cues in order to determine their understanding of information and instructions you give them. Additionally, you should use effective open-ended questions to determine their level of understanding and possibly uncover questions that they might not ask on their own. Only through your vigilant efforts can problems and misunderstandings potentially be caught and corrected before the customer develops a problem or becomes dissatisfied. To potentially help reduce the chance of a service breakdown, follow these steps when explaining something to a customer: -Try to eliminate surrounding distractions. If you are meeting face to face, perhaps you can ask them to step into an empty office, cubicle, or other quiet location. If on the telephone, try to reduce background noises. -Provide written as well as verbal information when possible since you increase the chance of comprehension by engaging more senses. Also, if the person has a hearing deficit or speaks English as a second language, doing this can assist them without drawing attention to their deficit. That is because they now have something to refer to later. -Speak slowly and use short sentences. Also avoid use of technical jargon (or at least define terms when you use them). Be observant of their nonverbal cues to try to determine when they have questions (e.g. they seem to smile nervously even though they tell you they understand what was said). -Explain and demonstrate steps, processes, or whatever you are discussing. For example, if you are talking about filling out a rebate form, have the form in front of you and explain whatever is necessary while indicating required actions to the customer. You may even help them fill it out, if time permits. -Depending on the situation, once you have explained and demonstrated, have them also perform the steps as you observe and give necessary feedback. -Ask frequent open-ended question as you explain information before moving to a new concept or point. Make sure the customer understands one piece of information before moving to another, otherwise they may simply become more confused. -Listen carefully to the customer’s comments and questions and respond with information that they request. If necessary, repeat information (possibly in a different way to ensure they understand what you said). -Provide them with a follow-up name and number in the event that they have questions later. Failure of Customer to Follow-Through There are times when a customer buys a product or service, or has a problem that necessitates recovery efforts. In these instances, negotiations often take place in which the customer and organization commit to specific actions. Sometimes, the customer may not live up to his or her part of the bargain. For example, suppose a customer bought a new computer from your organization, had trouble getting it to function properly, and subsequently called to complain. After talking to a technical support representative who informed him that the company absolutely stands behind its product warranty he was asked to document the problem and call back. The service representative asked the customer to write down specific error messages that appear on his computer monitor for the next two days so they the problem can be better diagnosed, then bring the unit to the store for repair. Two days later the customer showed up at the store with the computer but said he forgot to write down the error messages. This type of customer behavior and failure to follow-through can be frustrating, however, it may be unavoidable in some instances. In any instance, it is still your job to help determine the problem and resolve it efficiently. When such events occur, the customer may still become dissatisfied and may even displace blame back to the organization or you. Either way everyone loses – the customer, you, and the organization. About the only thing you can do before and after such an event occurs is to practice your effective communication skills and try to reinforce the importance of the customer following through with instructions and requests. Instructor Note 13-13: Have students complete Work It Out 13.2 – Helping Customers. Once they have finished, have them share their answers with the class and discuss. Tie their responses into text content. REASONS FOR CUSTOMER DEFECTION Following a service breakdown, there is always a possibility that you may never see the customer again. This is potentially disastrous to your organization since it costs five to six times as much to win a new customer as it takes to retain a current one. And, as we saw earlier in this chapter, a dissatisfied customer is also likely to tell other people about their bad experience. For these reasons, you and others in your organization must be especially careful to identify and remedy potential and actual problem areas before they negatively impact the customer. Instructor Note 13-14: Use PowerPoint 13-9 - Reasons for Customer Defection, to lead a discussion related to why customers go away. Give and solicit specific examples, where appropriate. Poor/ Service/Complacency If customers perceive that you and/or your organization do not sincerely care about them or resolving their problem, they may go elsewhere. If an issue or concern is important enough for the customer to verbalize (formally or informally) or to write down, then it is important enough for you to take seriously. You should immediately address the issue by listening, gathering information, and taking appropriate action. This includes casual comments made by a customer such as, "You know, I sure wish you folks stocked a wider variety of rose bushes. I love shopping here but your selection is so limited." In this instance, you might write down the customer's name, phone number and address, then follow-up with your manager or product buyers about it. Additionally, practice your questioning skills by asking, “What color did you have in mind?” or “What is your favorite color?” If the customer had a specific request, you could pass that along. After doing so, you or someone else should try to obtain the item, then contact the customer to discuss your efforts and findings. Sometimes the obvious solutions are the ones that are overlooked, so be perceptive when dealing with customers and look for little clues such as these. It could mean the difference in continued business and word of mouth publicity from your customer. Instructor Note 13-15: Ask students for examples of complacency and discuss how to prevent sending messages that might be interpreted by customers as such. Inappropriate Complaint Resolution The key to remember about complaint resolution is that it is the customer's perception of how well resolution occurred, not yours, that counts. If customers believe that they were not treated fairly, honestly, in a timely manner and appropriate fashion, or that they are still dissatisfied (for any reason), your efforts failed. Remember that only a small percentage of your customers complain. Second attempts at resolutions by customers are often nonexistent! When a breakdown in complaint resolution occurs, it is usually a result of the customer’s expectations of what you should (or will) do to resolve an issue not matching what you actually do. For example, assume that you are a front desk staff member at a hotel and a customer just called to complain that her television remote control was not working properly. Since you get several such calls a day, you simply send a member of the bell staff with new batteries to her room. Even if the batteries fix the problem, the fact that an engineer was not dispatched to handle the problem could create a service breakdown. This would be compounded if after putting the batteries into the remote herself, the device still did not work and she had to call back to the front desk a second time. In all likelihood, the customer was expecting someone to come and repair or replace the remote and to offer an apology for the inconvenience. If this does not happen, she will likely be less than satisfied because her expectations were not met. In other words, her perception of what you would do differed from your actions. Unmet Needs Once you uncover a customer’s needs through open-ended questioning or other approach quickly decide on an appropriate action, product, or service to offer. Customers have very specific needs to which you must attend. When these are not addressed or are unsatisfactorily met, the customer is likely to seek an alternative source of fulfillment. So often, service providers make the mistake of trying to project their personal needs onto others. Their feeling is that “I like it, so everybody should like it.” Today’s diverse world requires you to be more knowledgeable and accepting of the ideas, values, beliefs, and needs of others. Failure to do so is only setting you, your organization, and your customers on a collision course. It is not worth the gamble because when it happens, nobody wins totally. Remember what you have read about trust and how quickly it can be destroyed in relationships. Unfair Treatment When a customer perceives that he or she has been treated unfairly or worse, dishonestly, they are likely to leave. Additionally, they may do so angrily and follow up with formal complaints or retaliation (e.g. in the form of letters to advocacy groups, senior management, local news media, or even a lawsuit). To prevent a customer perception of being treated unfairly, take the time to focus on each person with whom you interact. Identify his or her needs using the interpersonal communication strategies already learned and then strive to help meet those needs. Additionally, ensure that you service all customers without the hint of inequity. For example, assume that a customer comes in to your bakery where there is a short line of customers waiting to be served. The customer orders a dozen bagels. Since she is a regular customer, you thrown in an extra bagel free. A few minutes later, a man steps to the counter and orders a dozen bagels. You do not offer him a free one. Inadequate Systems When breakdowns occur in crucial elements of the service chain, you can expect dissatisfaction and potential abandonment. Typical failures occur in order taking, billing, shipping, 800 numbers, inventory control, and customer service. To help reduce or eliminate such crashes, look for potential problem areas and work with others in the organization to fix them before the customer comes into contact with them. TECHNIQUES FOR PREVENTING DISSATISFACTION The best way to deal with a service breakdown is to prevent it from occurring. Instructor Note 13-16: Use PowerPoint 13.10 – Prevention Strategies to lead a discussion related to techniques to keep customers satisfied and potentially preventing their defection. Solicit additional examples from students. Think Like a Customer Learn to use the interactive communication skills for discovering customer needs and expectations. Once you've mastered the skills, set out to discuss what the customer wants by observing his or her nonverbal behavior, asking specific questions, and listening to comments and responses that he or she offers. Learn to listen for the customer’s unspoken as well as verbalized needs, concerns, and questions. Project how you would like to be served under the conditions you are dealing with and act accordingly. Instructor Note 13-17: Have students think of a time when a service provider seemed to anticipate their needs before they made it known to him or her. ASK: How do you think he or she did that? How did it make you feel about the service provider and organization? What were the long-term results? Pamper the Customer Make them feel special and important. Treat them as if they are the center of your attention and that you are there for no other purpose than to serve them. Do the unexpected and take any extra effort necessary to meet and exceed their needs. Even if you can't satisfy all of their wishes, by being positive, enthusiastic, and taking time to show added initiative, customers can walk away feeling well about the encounter. Respect the Customer Before you begin focusing on their problem take some time to listen and show you support them and their viewpoint, where appropriate. By taking a people-centered approach to problem analysis and solving, you can win the customer over. With both of you working together, you can define the problem and jointly seek an acceptable solution. Focus on the Customer When a customer takes the time to share a concern, complaint or question, a service provider should take positive action to address it. React to remarks or actions Let a customer know you listened to what he or she said or that you received his or her written message. If the information is given in person remember to use the verbal, nonverbal, and listening skills. Smile and acknowledge the customer’s presence and comments. If you can't deal with him or her at that moment because you are servicing another customer, let him or her know when you will be available. If the comments are in writing, respond quickly. If there is a phone number available, try calling to speed up the response, then follow up in writing. Empathize Let customers know through your words and actions that you are concerned, do appreciate their views, feelings, or concerns, and that you'll do your best to serve them. Take action Once you've gathered enough information to determine a necessary and appropriate response, get agreement from you customer, then act. The faster and more appropriately you act, the more important the customer will feel. Reassure or reaffirm Take measures to let customers know that you and the organization have their best interest at heart. Stress their value to you and your current and future commitment to resolving their complaint. Part of this is providing your name, phone number, and what actions you will take. For example, "Mrs. Lupe, I appreciate your concern about not receiving the package on time. My name is ___________, my number is 407 600-0000 and I will research the problem. Once I've discovered what happened, I'll call you back. If it looks like it will take more than a day, I'll call you by 4:00 P.M. tomorrow to update you. Is that acceptable?" Follow up Once a customer transaction is completed, ensure that any necessary follow-up actions are instituted. For example, if appropriate, make an additional phone call to customers to ensure that they received their order, they are satisfied with your actions, or simply to reassure them and provide a opportunity for questions. If you promised to take some action, do so and coordinate with others who need to be involved. Instructor Note 13-18: Use Work It Out 13.3 – Focusing on the Customer to lead a discussion in which you elicit student ideas additional strategies which can show that they are focused on their customer. Flip Chart their responses. Exceed Expectations Go the extra mile of by giving your customers the exemplary service discussed in Chapter 12. Strive to get the highest rating possible on the Relationship Rating Point Scale. By reaching a higher level on the scale, you significantly reduce the chance of a service breakdown. To get a higher rating, work hard to understand what the customer wants and expects. Observe customers, monitor trends, and talk to them. Constantly look for ways to go beyond the expected or what the competition provides. Provide it faster, better, and more efficiently than others, and exceed customer expectations. Do things for your customer that set your service attitude apart from other providers. Some things cost little or no money and return many times over through goodwill generated and positive word of mouth publicity. Even amid the pressures of sales and service situations, maintain a professional approach and to demonstrate that you are working to please the customer. Some specific actions to accomplish this include the following: -Sharpen your perception skills. -Be sensitive to the needs of your customers. -Demonstrate understanding and empathy. -Take initiative to resolve issues and help your customers. -Be resourceful in assisting customers. -Accept responsibility and work toward resolving mistakes. -Communicate openly and positively. -Maintain a “personal touch” (use the person’s title/name and send positive nonverbal cues). -To raise your Relationship Rating, and more likely please your customers, take a look at these sample approaches. Modify or adapt them to whatever industry you may be working: Clothing salesperson: “While you try that outfit on, I’ll go pick out a couple different blouses that would compliment you perfectly.” Auto mechanic: “After I changed your oil, I checked and topped off all your other fluids too at no charge.” Bank customer service representative: “While you are waiting for a loan officer, can I get you a cup of coffee?” Hotel operator: “Along with your wake up call, I’ll have some coffee of hot tea brought up. Which would you prefer?” Restaurant host: “The wait for a table is approximately thirty minutes, can I get you a complimentary glass of wine or soft drink from the bar?” Travel agent: “Since this is your honeymoon cruise, I’ve arranged for a complimentary bottle of champagne to be delivered to your room along with a book of discount coupons for on-board services.” Call center representative: “Because you were on hold so long to place your order, I’m taking 10 percent off your entire order.” Training consultant: “Because you are booking three training programs with us, I’ll give you a twenty percent discount off my fee.” Dentist: “For referring your friend to us, I’ve told my receptionist to take $25 off your next office visit fee.” Plumber: “While I was fixing your toilet stopper, I noticed that your lift arm was almost rusted through, so I changed it too, at no charge.” Instructor Note 13-19: Ask several students to share heir experiences with the class where a service provider did something extra for them. Discuss how these experiences impacted them. Also discuss how they might be used by everyone to better deliver service to his or her customers. VIDEO – Hypertec Clothing 12 minutes 14 seconds Introduce Video Have students take out a piece of paper and prepare to take notes based on what they see. They should note verbal and nonverbal interactions between characters, what worked, and what did not work from a service perspective. Characters: Female customer/buyer (Beth Armstrong)/Male Customer Service Director (Bill Schule) Scenario: Buyer placed an on-line order a month ago for products and has not received them. Her customers are complaining and she needs resolution. She is emotional and claims that there are problems within the manager’s service area. The Customer Service Director is trying to determine the problem and address it. Show Video (Stop after the dialog and before Bill does a synopsis of what he thinks went well or not so well). Debrief Video: What was going on in this scenario? Based on what you know, was the customer justified in her and stance or not? Why or why not? What did the Customer Service Director do to handle the situation that was effective? What could the Customer Service Director have done differently to positively impact service? Explain. What other observations do you have about the situation? How can you use this scenario to improve your own service delivery? Show Bill’s Summary of the Scenario Discuss any additional student thoughts or reactions. IMPLEMENTING A SERVICE RECOVERY STRATEGY The primary purpose of any good service recovery program should be to return the customer-provider relationship to a normal state. When done well, a disgruntled customer can effectively be converted to one who is very loyal and who acts as a publicist for the organization. Instructor Note 13-20: Refer to Figure 13.4 - Service Recovery Process, as you go over the material in this section. Use PowerPoint 13-11- Implementing Recovery to review recovery strategies listed in the text. Typically these are five phases to the service recovery process: Apologize, apologize, apologize Before you can implement a service recovery action plan, you must first discover why your customer is dissatisfied. To do this LISTEN carefully. Use open-ended questions to determine what went wrong in order to decide the best way to recover. Empathize with the customer as they explain and DO NOT make excuses, interrupt, or otherwise indicate (verbally or nonverbally) that you do not have time for the customer’s issue, if you want to retain the customer and have an opportunity for recovery. You must demonstrate that you care for the customer and that the person is very important to you and your organization. Showing sincere remorse throughout the recovery cycle is crucial. One way of accomplishing a remorseful display is to offer a sincere apology immediately following the discovery of the customer's dissatisfaction. Your apology should be delivered in person, if possible. The phone is a second option, with written apologies as the last choice. Interestingly, many service providers do not actually accept responsibility and/or apologize when customers become dissatisfied. Take immediate action As soon as your customer has identified a problem area or concern, you must set about positively resolving the issue. To do this you will need to go through the problem solving steps discussed in other chapters (Identify the problem, analyze the problem/issue, clarify criteria for available alternatives, list and evaluate alternatives, select the best alternative, and monitor the results). As you proceed, it is crucial that you keep the customer informed of actions, barriers encountered, or successful efforts. Even if you are unable to make a quick resolution, the customer may be satisfied if your efforts are perceived as sincere and ongoing. You must also convince customers through your actions and words that you are doing your best to resolve the issue in a timely manner. Also, do not forget what you read earlier in the book about avoiding having to say “no” without offering service options. Remember your customers want to hear what you can do for them, not what you cannot. Certainly, there may be times when even though you want to give the customer exactly what they want, you will not be able to do so because of statutory regulations or prohibitions (e.g. local, state, or federal laws or regulations). In such cases, it is important to use all the interpersonal skills learned (e.g. active listening, empathizing, and providing feedback) to let the customer know that you would like to meet their request, however are prohibited from doing so. It is also important to explain the why in such situations rather than just saying, “I’m sorry, the law won’t let me do that.” This type of response sounds as if you are not being truthful, do not want to assist, and are hiding behind an invisible barrier. An example of one of these prohibitions would be in a case where a relative of a patient goes to a doctor’s office to get a copy of the medical records for her brother. This would against the law without specific permissions being given, because of a patient’s right to privacy and confidentiality between patient and doctor. In such instances, you show a willingness to assist and meet the customers requests even though other things prohibit you from doing so. You also partner with them and offer alternatives for consideration. This is important, since you do not want to close the door on customer opportunities. Doing so will surely send them running to a competitor. Instructor Note 13-21: Ask students for examples of situations where service providers could not fulfill their needs even though they wanted to. Also solicit opinions of how these instances made them feel related to the provider. You may also want to talk about specific situations that they offer and strategies for handling them should they arrive when the students are in the role of provider. Empathize Before you can truly address the customers' problem you must deal with their emotions or feelings. If you disregard these, customers may not give you a chance to help resolve the breakdown. Also, keep in mind what you read about trust in an earlier chapter; you must give it to receive it. To help the customer see that your remorse and desire to fix are genuine, you must demonstrate empathy. Expressions, such as, "I can appreciate your frustration," "I understand how we have inconvenienced you," or "I can imagine how you must feel," can go a long way in soothing and winning the customer over. Provide compensation Prove to customers that they are valuable and that you are trying to make up for their inconvenience or loss. This penance or symbolic self-punishment should be significant enough that the customer feels you and your organization has suffered an equal loss. The value or degree of your atonement should equal the original customer loss in time, money, energy, or frustration. For example, if a customer's meal was cooked improperly and resulted in lost time or others in their party eating without them, you might give him or her a free meal. If you forgot a vegetable ordered and it came much later, a free dessert might suffice. The key is to volunteer the gesture without the customer having to suggest or demand it. Remember to exceed the customer’s expectations. Not only must the recovery compensate original loss; it should also give additional value. For example, if the customer had an oil change done on his or her car and received car back with oil on the carpet, an appropriate gesture might be to give the oil change free AND have the carpet cleaned at your company's expense. Conduct follow-up The only way to find out if you were successful in your recovery efforts or if the customer is truly satisfied is to follow up. The preferable method is face-to-face questioning or with a phone calls. This contact should come within a few days in most instances. It could take the form of a few simple statements or questions. (e.g. "I was following up to answer any additional questions," or "I'm calling to ensure that _____ is now working as it should be. Is there anything else we can do to assist you?") This last step in the recovery process can be the deciding factor in whether the customer returns to you or your organization. It is the phase that reemphasizes, "we truly care." ROADBLOCKS TO SERVICE RECOVERY From time to time, you may find your recovery efforts blocked by certain actions or inactions on your part or others in your organization. Instructor Note 13-22: Have students think of a time when they had a problem with a service provider and, after they had made the problem know and received a guarantee that it would be taken care of, they heard nothing from the service provider abd they had to follow-up. How did it make them feel about the service provider at that point? The Organization? How do they view the organization today? Use their responses to lead a discussion on how customer’s expectations related to communication and follow-up can determine future business and relationships. Use PowerPoint 13-12 - Roadblocks to Service Recovery, as a guide for identifying factors that sometimes prevent effective service recovery. Not Listening As we discussed in the chapter on listening, you must take an active role to effectively listen. Not only must you receive data, but also you must analyze and act upon it. Many service providers go through the motions of listening, however, they fail to do so accurately or actively. This can send a definite message of "I really don't care about you." Lack of respect Tied closely to listening is the issue of respect for the customer. Your actions or inactions related to customers and their problem or issue can lead to a perception that you are being rude, disrespectful, or uncaring. An example of little things that can lead to a perception of disrespect is for you to keep an external customer waiting even though they had a scheduled appointment. The same could be true for internal customers when you show up late for a scheduled team meeting. In such situation you and your organization/ department lose as customers complain, display their dissatisfaction in front of other customers, and/or (in the case of external customers) desert to a competitor. Keep in mind that this lack of respect might only be the customer’s perception. Even so, it is his or her perception that counts in such instances. The best strategy to prevent such a perception is to stay focused on the customer’s needs and try to prevent dissatisfaction. If a breakdown does occur, you must move quickly to recover by using the steps to recovery outlined earlier. Poor or Inadequate Communication Without solid communication recovery cannot occur when service breakdowns happen. The quality and amount of communication between you and your customer can be a determining success factor in maintaining a customer-provider relationship. Failure to keep the lines of communication open before, during, and after a transaction or customer contact (for example, in the case of on-going customer situations, such as, a lawyer working with his or her client) can lead to breakdowns in the relationship. Every effort should be made to constantly update and consult with the customers. If they feel neglected or left out, this could lead to further dissatisfaction and loss of business loyalty. Inadequate or Outdated Materials or Equipment Trying to provide service excellence without the necessary tools is frustrating and ineffective. It also can speed deterioration of a customer relationship and destroy trust. For example, you may be calling a customer from a list provided by the marketing department in order to update an address, or to sell the customers new services or products. You may be unaware that others have already called the customer, that the customer has already purchased the update from another service representative, or that they received a mail order solicitation that had a different (and better) offer for the same products and services. Your frustration goes up and credibility goes down in such an instance. Another example would be inadequate dates or record tracking computer software that does not allow timely entry and retrieval of information when dealing with customers. Lack of Training It's very difficult to perform at exceptional levels when you are not properly equipped with the knowledge and skills required. This is especially true in instances where you do not have adequate knowledge of the organization, its products, services and procedures, as well as the interpersonal skills needed to accomplish service recovery. Whenever gaps in these or any other area related to customer service are identified, you should approach your boss with a request for training. This training night be informal (e.g. audiotapes/ videos, CD-ROM, self-study courses, Internet courses, or written materials) or formal (e.g. classrooms, one-on-one coaching, or conferences). The format is not as important as the fact that you get what you need to better interact with and serve your customers. Work Conflicts No matter how much you care and want to provide quality service, you may fail if you over commit or if your organization overextends its human resources. It's impossible to be everything to everyone. When work scheduling creates a situation of being pulled in too many directions, failure is probable. To overcome this potential, constant monitoring of workload is required. Recommendations to your team leader or supervisor for schedule changes, job sharing, or reapportionment of workload might be appropriate. Instructor Note 13-23: Take a few minutes to divide students into small groups and have them develop a list of other “roadblocks to service recovery.” For example, being understaffed and overextended, policies or procedures, or inadequate management to support service recovery efforts. CHAPTER SUMMARY Instructor Note 13-24: Spend a few minutes to review the key aspects of the chapter. Review the objectives in doing so and use a question and answer format to determine what students learned. Whenever a customer experiences an actual or perceived breakdown in service, prompt, appropriate recovery efforts may be your only hope of retaining the business. In a profession that has seen major strides in quality and technology as well as increased domestic and global competition, service is often the deciding factor. Customers expect and often demand their rights and to be treated in an exemplary fashion. When they are disappointed, they simply go elsewhere. Your role in the process is to remain vigilant, recognize customer needs and provide service levels that will keep them coming back. SERVICE IN ACTION – OFFICE DEPOT Instructor Note 13-25: Office depot formed in 1986 and is now one of the world’s largest sellers of office products in a variety of distribution channels. Spend some time discussing the company’s value statement that has contributed to its success: …Fanatical Customer Service We impress our customers (internal and external) so much that they want to buy again. We give higher priority to people than to tasks. We do it right the first time but “wow” our customers on recovery when we miss. You may want to further research the company and bring additional information to class. KEY TERMS AND CONCEPTS Instructor Note 13-26: Use the key terms and concepts at the end of the chapter as a review vehicle, if desired. This might be in the form of a verbal quiz in which you ask students randomly to define the terms or describe the concepts. CHAPTER REVIEW QUESTIONS Instructor Note 13-27: Present each question in the Chapter Review section, solicit responses, and make appropriate comments by tying into concepts learned in this chapter. Possible responses for Chapter Review questions: 1. What is service recovery? Service recovery involves efforts by an organization and/or a service provider takes appropriate actions to solve a customer problem, make restitution, or regain trust following a breakdown in the quality, quantity, or type of product or service delivered. 2. Define what is meant by the term "service breakdown." A service breakdown occurs whenever a product or service delivered fails to meet customer expectations. In some cases the product or service delivered may function exactly as it was designed, however, if the customer perceived that it should work another way, a breakdown occurs. 3. What are some of the organizational factors that can lead to service breakdown? Human resources, organization/structure, processes/programs, product/service design and delivery, internal communications, technological support systems, and standards/values. 4. List the employee related factors can contribute to service breakdown. Communication skills, knowledge, attitude, and technical skills. 5. Why do customers defect? Poor service/complacency, inappropriate complaint resolution, needs are not met, unfair treatment, or inadequate systems. 6. List some strategies for preventing customer dissatisfaction. Think like a customer, pamper customers, respect customers, focus on the customer, and exceed expectations. 7. In implementing a service recovery strategy, what are the five phases that should occur? Apologize, apologize, apologize, take immediate action, show compassion, provide compensation, and conduct follow-up. 8. What are some of the roadblocks to service recovery? Not listening, lack of respect, poor or inadequate communication, inadequate materials or equipment, lack of training, and work conflicts. SEARCH IT OUT Instructor Note 13-28: As an out-of-class activity to reinforce what students have learned from the chapter and classroom discussions, have them complete the Search It Out activity and bring their findings to class to share with the group. COLLABORATIVE LEARNING Instructor Note 13-26: Decide which of the activities in the Collaborative Learning activity you plan to use. Assign participants to groups as indicated, designate timeframes and have them participate in the activity. At the end of the designated time, debrief their actions, ask them what they have learned and how they will apply their knowledge in serving customers. FACE TO FACE Instructor Note 13-29: Have students individually complete the questions at the end of the face-to-face activity. Next, divide them into equal groups and give them fifteen minutes to discuss their answers. Bring the group back together and lead a discussion of the case. Possible responses to Face to Face questions: 1. Based on information in this chapter, how have you done on servicing Stu? Explain. You failed to use some basic interpersonal communication and customer service techniques. He promised things that were not delivered in a timely manner, you failed to follow-through on numerous occasions, and did not provide timely feedback to Stu. A big mistake was failing to apologize or perform effective recovery strategies. 2. What were Stu's needs/issues in this case? Stu wanted what he paid for and what the agreement called for initially. As time went on, he wanted someone to take ownership for the problem, fix it and make some sort of atonement. 3. Could you have done anything differently? More professionalism could have been exhibited by returning calls in a timely manner, not making promises that could not be kept, and following through on commitments and promises. Additionally, effective interpersonal communication is needed as well as the implementation of appropriate service recovery actions. 4. Are you sure Stu is satisfied and will give a good recommendation to neighbors or friends in the future? Why or why not? No. Since no feedback was solicited or given, there is no way of knowing the end result unless you start hearing about good or bad comments that Stu has passed on to other customers. PLANNING TO SERVE Instructor Note 13-30: Have students work individually or in groups to complete the Planning to Serve activity.