Description
It covers the various service failure scenarios along with causes. It also discusses the ways for service recovery and guarantee.
TYPES OF SERVICE FAILURES (MAJOR):
1.
2.
3. 4.
SERVICE UNAVAILABLE WHEN PROMISED; SERVICE DELIVERED TOO LATE OR TOO SLOWLY; SERVICE OUTCOME IS INCORRECT UNSATISFACTORY BEHAVIOR OF SERVICE EMPLOYEES
RECOVERY STRATEGIES:
1. 2.
PASSIVES: VOICERS: IRATES:
3.
4.
ACTIVISTS:
LEAST LIKELY TO TAKE ANY ACTION; ACTIVELY COMPLAIN TO SP, BUT LESS LIKELY TO GIVE NEGATIVE W-O-M PUBLICITY; ENGAGE IN NEGATIVE W-O-M TALK; ALSO LIKELY TO SWITCH TO OTHER SPs, LESS LIKELY TO GIVE SP ANOTHER CHANCE. -THEY COMPLAIN ON ALL DIMENSIONS -COMPLAINING COMES NATURALLY TO THEM. -THEY COMPLAIN TO ALL PARTIES FRIENDS, RELATIVES, THIRD PARTIES. -ALSO LIKELY TO TAKE LEGAL ACTION.
SERVICE FAILURE DISSATISFACTION/NEGATIVE FEELINGS
COMPLAINT ACTION
NO COMPLAINT ACTION
COMPLAIN TO SP
NEGATIVE W-O-M
THIRD PARTY ACTION
LEGAL ACTION
SWITCH SWITCH STAY
STAY
CUSTOMERS ARE MORE LIKELY TO COMPLAIN (eg. VACATION PACKAGES, AIRLINE TRAVEL, MEDICAL SERVICES)
WHEN THEY COMPLAIN, EXPECT FAIR TREATMENT CUSTOMERS
1.
2.
3.
OUTCOME FAIRNESS- CAN TAKE THE FORM OF MONETARY COMPANSATION,AN APOLOGY, FUTURE FREE SERVICES, REDUCED CHARGES, REPAIRS AND/OR REPLACEMENTS. PROCEDURAL FAIRNESS- IN TERMS OF POLICIES RULES & TIMELINESS OF THE COMPLAINT PROCESS. INTERACTION FAIRNESS- EXPECTATION IS TO BE TREATED FAIRLY, POLITELY, WITH CARE & HONESTY.
1.TRUE
RELATIONSHIPWHERE CUSTOMER HAS REPEATED CONTACT OEVER TIME WITH THE SAME SP. 2.PSEUDO-RELATIONSHIP– WHERE CUSTOMERS HAS INTERACTED MANY TIMES WITH THE SAME COMPANY, BUT WITH DIFFERENT SPs EACH TIME. 3.FIRST ENCOUNTER RELATIONSHIPWHERE THE CUSTOMER HAS HAD ONLY ONE CONTACT ON A TRANSACTION BASIS WITH THE SP.
RESEARCH SHOWS THAT CUSTOMERS WHO HAVE TRUE RELATIONSHIPS ARE MORE TOLERANT OF SERVICE FAILURES. THEY ARE ALSO LESS LIKELY TO SWITCH.
-
TYPE OF RECOVERY TOOL DEFINED AS: ASSURANCE OF QUALITY OR LENGTH OF USE TO BE EXPECTED FROM PRODUCT OFFERED FOR SALE, OFTEN WITH A PROMISE FOR REIMBURSEMENT. MEANS FOR DEFINING, CULTIVATING AND MAINTAINING QUALITY THROUGHOUT THE ORGANIZATION.
-
-
-
-
GOOD GUARANTEE FORCES THE SP TO FOCUS ON ITS CUSTOMER; IT SETS CLEAR STANDARDS FOR THE SP; IT GENERATES IMMEDIATE & RELEVANT FEEDBACK FROM CUSTOMERS; IT HELPS PROVIDE AN OPPORTUNITY FOR SERVICE RECOVERY; INFORMATION GENERATED CAN BE TRACKED AND INTEGRATED INTO CONTINUOUS IMPROVEMENT METHODS/EFFORTS. IT IMPROVES MORALE OF EMPLOYEES; IT REDUCES CUSTOMER’S SENSE OF RISK.
WHEN NOT TO USE: - EXISTING SERVICE QUALITY IN THE SP’s ORGANIZATION IS POOR; - A GUARANTEE DOES NOT FIT THE COMPANY’S IMAGE; - SERVICE QUALITY IS TRULY UNCONTROLLABLE; - COST OF GUARANTEES ARE MORE THAN BENEFITS (CUSTOMER LOYALTY, QUALITY IMPROVEMENTS, ATTRACTING NEW CUSTOMERS, W-O-M ADVERTISING); - NO DIFFERENTIATION IN SQ COMPARED TO THOSE OF COMPETITORS.
GUARANTEES ARE USUALLY MOST EFFECTIVE WHEN CUSTOMERS ARE UNCERTAIN ABOUT THE COMPANY AND/OR THE QUALITY OF ITS SERVICES
TYPES OF SERVICE GUARANTEES
TYPE
SINGLE ATTRIBUTE, SPECIFIC GUARANTEE MULTI ATTRIBUTE, SPECIFIC GUARANTEE
GUARANTEE SCOPE
EXAMPLE
ONE KEY ATTRIBUTE OF SERVICE IS DOMINO’S PIZZA COVERED BY GUARANTEE
FEW IMPORTANT SERVICE ARE GUARANTEE
ATTRIBUTES COVERED
OF MARRIOTT HOTEL BY -FRIENDLY CHECK-IN; -CLEAN ROOMS; -EXPRESS CHECKOUT ARE FREE SERVICE WARRANTY OF VEHICLES FOR ONE YEAR AFTER PURCHASE
FULL SATISFACTION GUARANTEE
ALL ASPECTS OF SERVICE COVERED. NO EXPECTATIONS.
COMBINED GUARANTEE
ALL ASPECTS OF SERVICE ARE DATAPRO, COVERED. MINIMUM PERFORMANCE SINGAPORE STANDARDS ARE INCLUDED IN GUARANTEE TO REDUCE UNCERTAINITY.
– is usually a written guarantee for a product and declares the producer’s responsibility to repair or replace defective parts/products ? GUARANTEE – is an agreement assuming responsibility to perform, execute or complete something offering security for that agreement.
? WARRANTY
?
?
?
?
?
?
GUARANTEE SHOULD MAKE ITS PROMISE UNCONDITIONALLY; IT SHOULD GUARANTEE ELEMENTS OF SERVICE THAT ARE IMPORTANT TO CUSTOMER; PAYOUT SHOULD COVER FULLY CUSTOMER’S DISSATISFACTION; CUSTOMERS NEED TO UNDERSTAND WHAT TO EXPECT; EMPLOYEES NEED TO UNDERSTAND THE SCOPE OF GUARANTEE; PROCESSING OF GUARANTEES SHOULD BE SIMPLE AND STRAIGHT-FORWARD
UNCONDITIONAL
CONDITIONAL
DATAPRO, SINGAPORE OFFERS COMBINED SERVICE GUARANTEE. - IT GUARANTEES TO DELIVER THE REPORT ON TIME, TO HIGH QUALITY STANDARDS AND TO THE CONTENTS OUTLINES IN THE PROPOSAL - IF THEY FAIL TO DELIVER OR CUSTOMER IS DISSATISFIED WITH ANY ASPECT OF WORK, CUSTOMER IS FREE TO DEDUCT 10% OF PRICE OF STUDY FOR EACH WEEK OF DELAY SUBJECT TO A MAXIMUM OF 20%. - THEY CAN OFFER THIS ON ACCOUNT OF THEIR CONFIDENCE ABOUT THE GOOD QUALITY AND PROFESSIONALISM OF THEIR SERVICES; - THEIR CLIENTS INCLUDE: FUJITSU, H-P, INTEL, NORTHERN TELECOM, PHILIPS & SONY
RESPONSE TO SERVICE FAILURE:
- NEGATIVE RESPONSE - NO RESPONSE - RELUCTANT RESPONSE
INCONVENIENCE:
- LOCATION/HOURS - WAIT FOR APPT - WAIT FOR SERVICE
COMPETITION:
- FOUND BETTER SREVICE
CORE SERVICE FAILURE:
- SERVICE MISTAKES - BILLING ERRORS -SERVICE DISASTER
SERVICE SWITCHING BEHAVIOR
-ETHICAL PROBLEMS:
-CHEAT; -HARD SELL; -UNSAFE; -CONFLICT OF INTEREST
SERVICE ENCOUNTER FAILURES -UNCARING
- IMPOLITE -UNRESPONSIVE -IGNORANT
-INVOLUNTARY SWITCHING:
-CUSTOMER MOVED -SP CLOSED DOWN
DO JOB RIGHT FIRST TIME
+
EFFECTIVE COMPLAINT HANDLING IDENTIFY SERVICE COMPLAINTS RESOLVE COMPLAINTS EFFECIENTLY LEARN FROM RECOVERY EXPERIENCE LEARN FROM LOST CUSTOMERS
= +
INCREASED SATISFACTION & LOYALTY ? CONDUCT RESEARCH ? MONITOR COMPLAINTS ? DEVELOP COMPLAINT AS ‘OPPORTUNITY’ CULTURE DEVELOP EFFECTIVE SYSTEM & TRAINING IN COMPLAINT HANDLING CONDUCT ROOT/ CAUSE ANALYSIS
ANALYZE REASONS FOR CUSTOMER SWITCHING
CLOSE LOOP VIA FEEDBACK
doc_165356151.ppt
It covers the various service failure scenarios along with causes. It also discusses the ways for service recovery and guarantee.
TYPES OF SERVICE FAILURES (MAJOR):
1.
2.
3. 4.
SERVICE UNAVAILABLE WHEN PROMISED; SERVICE DELIVERED TOO LATE OR TOO SLOWLY; SERVICE OUTCOME IS INCORRECT UNSATISFACTORY BEHAVIOR OF SERVICE EMPLOYEES
RECOVERY STRATEGIES:
1. 2.
PASSIVES: VOICERS: IRATES:
3.
4.
ACTIVISTS:
LEAST LIKELY TO TAKE ANY ACTION; ACTIVELY COMPLAIN TO SP, BUT LESS LIKELY TO GIVE NEGATIVE W-O-M PUBLICITY; ENGAGE IN NEGATIVE W-O-M TALK; ALSO LIKELY TO SWITCH TO OTHER SPs, LESS LIKELY TO GIVE SP ANOTHER CHANCE. -THEY COMPLAIN ON ALL DIMENSIONS -COMPLAINING COMES NATURALLY TO THEM. -THEY COMPLAIN TO ALL PARTIES FRIENDS, RELATIVES, THIRD PARTIES. -ALSO LIKELY TO TAKE LEGAL ACTION.
SERVICE FAILURE DISSATISFACTION/NEGATIVE FEELINGS
COMPLAINT ACTION
NO COMPLAINT ACTION
COMPLAIN TO SP
NEGATIVE W-O-M
THIRD PARTY ACTION
LEGAL ACTION
SWITCH SWITCH STAY
STAY
CUSTOMERS ARE MORE LIKELY TO COMPLAIN (eg. VACATION PACKAGES, AIRLINE TRAVEL, MEDICAL SERVICES)
WHEN THEY COMPLAIN, EXPECT FAIR TREATMENT CUSTOMERS
1.
2.
3.
OUTCOME FAIRNESS- CAN TAKE THE FORM OF MONETARY COMPANSATION,AN APOLOGY, FUTURE FREE SERVICES, REDUCED CHARGES, REPAIRS AND/OR REPLACEMENTS. PROCEDURAL FAIRNESS- IN TERMS OF POLICIES RULES & TIMELINESS OF THE COMPLAINT PROCESS. INTERACTION FAIRNESS- EXPECTATION IS TO BE TREATED FAIRLY, POLITELY, WITH CARE & HONESTY.
1.TRUE
RELATIONSHIPWHERE CUSTOMER HAS REPEATED CONTACT OEVER TIME WITH THE SAME SP. 2.PSEUDO-RELATIONSHIP– WHERE CUSTOMERS HAS INTERACTED MANY TIMES WITH THE SAME COMPANY, BUT WITH DIFFERENT SPs EACH TIME. 3.FIRST ENCOUNTER RELATIONSHIPWHERE THE CUSTOMER HAS HAD ONLY ONE CONTACT ON A TRANSACTION BASIS WITH THE SP.
RESEARCH SHOWS THAT CUSTOMERS WHO HAVE TRUE RELATIONSHIPS ARE MORE TOLERANT OF SERVICE FAILURES. THEY ARE ALSO LESS LIKELY TO SWITCH.
-
TYPE OF RECOVERY TOOL DEFINED AS: ASSURANCE OF QUALITY OR LENGTH OF USE TO BE EXPECTED FROM PRODUCT OFFERED FOR SALE, OFTEN WITH A PROMISE FOR REIMBURSEMENT. MEANS FOR DEFINING, CULTIVATING AND MAINTAINING QUALITY THROUGHOUT THE ORGANIZATION.
-
-
-
-
GOOD GUARANTEE FORCES THE SP TO FOCUS ON ITS CUSTOMER; IT SETS CLEAR STANDARDS FOR THE SP; IT GENERATES IMMEDIATE & RELEVANT FEEDBACK FROM CUSTOMERS; IT HELPS PROVIDE AN OPPORTUNITY FOR SERVICE RECOVERY; INFORMATION GENERATED CAN BE TRACKED AND INTEGRATED INTO CONTINUOUS IMPROVEMENT METHODS/EFFORTS. IT IMPROVES MORALE OF EMPLOYEES; IT REDUCES CUSTOMER’S SENSE OF RISK.
WHEN NOT TO USE: - EXISTING SERVICE QUALITY IN THE SP’s ORGANIZATION IS POOR; - A GUARANTEE DOES NOT FIT THE COMPANY’S IMAGE; - SERVICE QUALITY IS TRULY UNCONTROLLABLE; - COST OF GUARANTEES ARE MORE THAN BENEFITS (CUSTOMER LOYALTY, QUALITY IMPROVEMENTS, ATTRACTING NEW CUSTOMERS, W-O-M ADVERTISING); - NO DIFFERENTIATION IN SQ COMPARED TO THOSE OF COMPETITORS.
GUARANTEES ARE USUALLY MOST EFFECTIVE WHEN CUSTOMERS ARE UNCERTAIN ABOUT THE COMPANY AND/OR THE QUALITY OF ITS SERVICES
TYPES OF SERVICE GUARANTEES
TYPE
SINGLE ATTRIBUTE, SPECIFIC GUARANTEE MULTI ATTRIBUTE, SPECIFIC GUARANTEE
GUARANTEE SCOPE
EXAMPLE
ONE KEY ATTRIBUTE OF SERVICE IS DOMINO’S PIZZA COVERED BY GUARANTEE
FEW IMPORTANT SERVICE ARE GUARANTEE
ATTRIBUTES COVERED
OF MARRIOTT HOTEL BY -FRIENDLY CHECK-IN; -CLEAN ROOMS; -EXPRESS CHECKOUT ARE FREE SERVICE WARRANTY OF VEHICLES FOR ONE YEAR AFTER PURCHASE
FULL SATISFACTION GUARANTEE
ALL ASPECTS OF SERVICE COVERED. NO EXPECTATIONS.
COMBINED GUARANTEE
ALL ASPECTS OF SERVICE ARE DATAPRO, COVERED. MINIMUM PERFORMANCE SINGAPORE STANDARDS ARE INCLUDED IN GUARANTEE TO REDUCE UNCERTAINITY.
– is usually a written guarantee for a product and declares the producer’s responsibility to repair or replace defective parts/products ? GUARANTEE – is an agreement assuming responsibility to perform, execute or complete something offering security for that agreement.
? WARRANTY
?
?
?
?
?
?
GUARANTEE SHOULD MAKE ITS PROMISE UNCONDITIONALLY; IT SHOULD GUARANTEE ELEMENTS OF SERVICE THAT ARE IMPORTANT TO CUSTOMER; PAYOUT SHOULD COVER FULLY CUSTOMER’S DISSATISFACTION; CUSTOMERS NEED TO UNDERSTAND WHAT TO EXPECT; EMPLOYEES NEED TO UNDERSTAND THE SCOPE OF GUARANTEE; PROCESSING OF GUARANTEES SHOULD BE SIMPLE AND STRAIGHT-FORWARD
UNCONDITIONAL
CONDITIONAL
DATAPRO, SINGAPORE OFFERS COMBINED SERVICE GUARANTEE. - IT GUARANTEES TO DELIVER THE REPORT ON TIME, TO HIGH QUALITY STANDARDS AND TO THE CONTENTS OUTLINES IN THE PROPOSAL - IF THEY FAIL TO DELIVER OR CUSTOMER IS DISSATISFIED WITH ANY ASPECT OF WORK, CUSTOMER IS FREE TO DEDUCT 10% OF PRICE OF STUDY FOR EACH WEEK OF DELAY SUBJECT TO A MAXIMUM OF 20%. - THEY CAN OFFER THIS ON ACCOUNT OF THEIR CONFIDENCE ABOUT THE GOOD QUALITY AND PROFESSIONALISM OF THEIR SERVICES; - THEIR CLIENTS INCLUDE: FUJITSU, H-P, INTEL, NORTHERN TELECOM, PHILIPS & SONY
RESPONSE TO SERVICE FAILURE:
- NEGATIVE RESPONSE - NO RESPONSE - RELUCTANT RESPONSE
INCONVENIENCE:
- LOCATION/HOURS - WAIT FOR APPT - WAIT FOR SERVICE
COMPETITION:
- FOUND BETTER SREVICE
CORE SERVICE FAILURE:
- SERVICE MISTAKES - BILLING ERRORS -SERVICE DISASTER
SERVICE SWITCHING BEHAVIOR
-ETHICAL PROBLEMS:
-CHEAT; -HARD SELL; -UNSAFE; -CONFLICT OF INTEREST
SERVICE ENCOUNTER FAILURES -UNCARING
- IMPOLITE -UNRESPONSIVE -IGNORANT
-INVOLUNTARY SWITCHING:
-CUSTOMER MOVED -SP CLOSED DOWN
DO JOB RIGHT FIRST TIME
+
EFFECTIVE COMPLAINT HANDLING IDENTIFY SERVICE COMPLAINTS RESOLVE COMPLAINTS EFFECIENTLY LEARN FROM RECOVERY EXPERIENCE LEARN FROM LOST CUSTOMERS
= +
INCREASED SATISFACTION & LOYALTY ? CONDUCT RESEARCH ? MONITOR COMPLAINTS ? DEVELOP COMPLAINT AS ‘OPPORTUNITY’ CULTURE DEVELOP EFFECTIVE SYSTEM & TRAINING IN COMPLAINT HANDLING CONDUCT ROOT/ CAUSE ANALYSIS
ANALYZE REASONS FOR CUSTOMER SWITCHING
CLOSE LOOP VIA FEEDBACK
doc_165356151.ppt