Monday, December 9, 2019

Service Recovery Report Dissatisfied Customers

Question: Write the Report onService Recovery forDissatisfied Customers. Answer: Introduction A service recovery organization is that part of management that is designed to change the negative perceptions of dissatisfied customers into positive ones i.e. Service recovery is the act of satisfying a dissatisfied customer and making them a loyal and trusted consumer for good by enacting good quality management skills and practices (Mattila, 2001). No matter how well the management would want to treat their customer problems and dissatisfaction are inevitable. However, it is the organizations duty to rectify their mistake and make sure that their consumer is well catered for and completely satisfied (McCollough et all, 2000). Therefore, in general terms it is clear that the main purpose for service recovery is to seek out and deal with service failure. Functions Front Stage This is an organizations direct responsibility to its customers i.e. the part of the operations which the customers experiences directly. E.g. marketing, sales, product delivery or service provision. Back Stage Includes all the supporting and administrating operations that help deliver the front stage. The part of operations done privately and behind closed doors. Division of labor and standardization. Moments of Truth This generally refers to the consumer contact i.e. between the service provider and the consumer. Therefore some of the moments of truth are: Lack of desired spark between consumers and front-line employees-In many organizations there is the lack of very good or expected relations between the customers and the employees especially the front line employees. Some of the services that are affected by this fact are things like: a customers flight cancelled, damaged product e.g. clothing, investment advices among others. Therefore, the front line employees of any organization should ensure that they can give their customers the best service and make sure that they put the customers needs before the organizations needs. Immense struggle of the executive to transform the companys response to customers-Every organization should have the customers needs as a priority. Therefore, this means that the customers need to be treated and served right. However in some organizations its not the case. Research has shown that most employees are affected by natural emotional responses which leads to them treating the customers wrongfully. Nonetheless, this should be avoided by every employee in order for the organization to be successful. Determinats of Satisfaction And Dissatisfaction Service Quality-This is the difference between the service expectation and the performance of the service. Therefore for a service recovery to be termed as a good quality service it has to perform better than or even best compared to the consumers expectations i.e. the consumers overall impression of the service. This is a determinant because it relates directly to the service itself and the consumer (Hart et all, 1989). Therefore, it is evident that if a customer views a service quality for a certain organization to be high, then they are likely to get high levels of satisfaction and if they seem to view the service quality to be low then the chances of them being dissatisfied are very high. Service Recovery-This itself is a determinant of customer satisfaction and dissatisfaction. Many studies have shown that recovery management techniques, methods and period have a great effect on customers evaluation for an organization (Kelley et all, 1994). This is because customers are more focused on how they will be treated during the recovery process than their first time service by the company. If the customer views the service recovery process and techniques to be very long, in efficient and unreliable then they are not only going to cause customer dissatisfaction but also will switch customer behavior towards the negative. Therefore, it is very important that the service organization to have well-executed and effective service recoveries. By doing this, the organization will be able to satisfy its consumers, have good consumer relations as well as preventing customer defections. Price Fairness-Price is said to be the measure of a products or services benefits and the willingness and capability of the consumer to pay for the product or service. Therefore, a consumers perception for price has been said to be one of the factors that determine satisfaction and dissatisfaction. Studies have shown that price fairness and customer satisfaction are directly related (Smith et all, 1999). Therefore, a fair and sensible price will indicate good or even better consumer satisfaction while high and insensible prices will indicate high rates of consumer dissatisfaction. Therefore, it is very vital that a service recovery organization sets fair prices for their products or services to increase consumer satisfaction. Brand Image-This generally refers to how the consumer views the service or product and how they feel, know and what they believe about it. For a consumer to be satisfied, they have to have a good or perfect brand image for themselves (Miller et all, 2000). However this is generally created by the organization itself by either fulfilling the consumers expectations and desired or not fulfilling them. In general, a good brand name is brought about by the organizations services or products. If a consumer does not get the expected results from a service or a product then it is evident that they are not satisfied and if they do it means that they are satisfied. Therefore, a good brand image will lead to customer satisfaction while a bad brand image will cause customer dissatisfaction. Strategic Plan Every service providing organization has the responsibility of giving the best recovery service to its customer. Therefore, for it to be successful it has to follow the following plan: Problem identification-The organization should identify the problem stated or experienced by the customers first; be it minor or major. Once a customer reports a complaint the organization should work on it as a priority and immediately keeping in mind that thats a second chance and in most cases no third chances. By doing this it will be able to correct the failure before it spreads widely. Intervention-This refers to whereby the employees try to come up with the solution to the identified problem. They should therefore remember that they are trying to rectify a wrong done. Therefore, they should focus on how to retain their customer, earn their trust and loyalty back. Intervention implementation-This is where the organization puts the solution into practice. It may be something like apologize, replace the product, rectify the failure, repeat the service for free to name just but a few. Observe the service recovery effects-This means checking on how the second has been performed and its results. However, for it to be termed as a successful recovery it has to be able to satisfy, retain the customer and earn their trust and loyalty back. It also includes doing some follow-ups too. Conclusion For any organization to be successful in gaining its customers trust, loyalty and most importantly retain them it must have a very successful and effective service recovery plan. Therefore this organization should work on its moments of truth and functions so that it deliver perfectly to the customers. References Mattila, A. S. (2001). The effectiveness of service recovery in a multi-industry setting.Journal of Services Marketing,15(7), 583-596. Kelley, S. W., Davis, M. A. (1994). Antecedents to customer expectations for service recovery.Journal of the Academy of Marketing Science,22(1), 52-61. Miller, J. L., Craighead, C. W., Karwan, K. R. (2000). Service recovery: a framework and empirical investigation.Journal of operations Management, 18(4), 387-400. Smith, A. K., Bolton, R. N., Wagner, J. (1999). A model of customer satisfaction with service encounters involving failure and recovery.Journal of marketing research, 356-372. McCollough, M. A., Berry, L. L., Yadav, M. S. (2000). An empirical investigation of customer satisfaction after service failure and recovery. Journal of service research,3(2), 121-137. Hart, C. W., Heskett, J. L., Sasser Jr, W. E. (1989). The profitable art of service recovery.Harvard business review,68(4), 148-156.

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