Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 7 Service Breakdowns and Service Recovery

7-2 Learning Objectives  Define what a service breakdown is  Apply knowledge of behavioral styles in difficult customer situations  Recognize different types of difficult customers and effectively deal with them  Use the emotion-reducing model to help keep difficult situations from escalating

7-3 Learning Objectives  Explain why customers defect  Develop effective strategies for working with internal customers  Identify strategies for preventing customer dissatisfaction and problem solving

7-4 Learning Objectives  Explain the six steps of the problem-solving model  Implement a front-line service recovery strategy, and spot roadblocks to service recovery  Discuss the importance of disaster planning initiatives in the service recovery process

7-5 Service Breakdown  Situations when product or service fails to:  Meet the customers’ wants or needs  Live up to advertised promises or standards

7-6 Figure Typical Customer Expectations

7-7 The Role of Behavioral Style  Affects the types of things people want and value  Helps match customers’ needs with the products and services your organization can provide

7-8 Difficult Customers  Challenge a service provider’s ability to deliver service  Require special skills and patience

7-9 Demanding or Domineering Customers  Strategies for dealing with them  Be professional and respect the customer  Be firm and fair and focus on the customer’s needs  Tell the customer what you can do

7-10 Indecisive Customers  Strategies for dealing with them  Be patient  Ask open-end questions  Listen actively  Suggest other options  Guide decision making

7-11 Dissatisfied Customer  Strategies for dealing with them  Listen and take appropriate action  Remain positive and flexible  Smile, give your name, and offer assistance  Be compassionate and empathize without making excuses  Ask open-end questions and verify information

7-12 Angry Customers  Strategies for dealing with them  Be positive and acknowledge their feelings  Reassure  Remain objective  Listen actively and determine the cause  Reduce frustrations  Negotiate a solution and conduct a follow-up

7-13 Figure Positive Wording

7-14 Rude or Inconsiderate Customers  Strategies for dealing with them  Remain professional  Do not resort to retaliation

7-15 Talkative Customers  Strategies for dealing with them  Remain warm and cordial, but focused  Ask specific open-end questions  Use closed-end questions to control  Manage the conversation

7-16 Figure Emotion-Reducing Model

7-17 Reasons for Customer Defection Poor service and complacency Inappropriate complaint resolution Unmet needs

7-18 Working with Internal Customers  Strategies to enhance interactions  Stay connected  Meet all commitments  Deal with your emotions  Build a professional reputation  Adopt a good-neighbor policy

7-19 Strategies for Preventing Dissatisfaction Think like the customer Pamper the customer Respect the customer Exceed expectations

7-20 Figure The Problem-Solving Model

7-21 Implementing a Service Recovery Strategy  Customers want the services they receive to be:  Seamless  Trustworthy  Attentive  Resourceful

7-22 Figure Service Recovery Process

7-23 Disaster Planning Initiatives in the Service Recovery Process Create a preparedness program for the businessIdentify critical business functions and systemsCreate an emergency communications planTest preparedness systems regularlyBuild a disaster preparedness kit