1. Chapter 7: Service Breakdowns and Service Recovery

2. Learning Outcomes 7-1 Define what a service breakdown is.
7-2 Apply knowledge of behavioral styles in difficult customer situations.
7-3 Recognize different types of difficult customers and effectively deal with them.
7-4 Use the emotion-reducing model to help keep difficult situations from escalating.
7-5 Explain why customers defect.
This chapter discusses the reasons for service breakdowns and recovery strategies.

3. Learning Outcomes
7-6 Develop effective strategies for working with internal customers.
7-7 Identify strategies for preventing customer dissatisfaction and problem solving.
7-8 Explain the six steps of the problem-solving model.
7-9 Implement a front-line service recovery strategy, and spot roadblocks to service recovery.
This chapter discusses the reasons for service breakdowns and recovery strategies.

4. Service Breakdown Define Examples LO 7-1 Service breakdowns Define
Occur daily in all types of organizations
Happen whenever the product or service delivered fails to meet the customer expectations
Customers today are better educated (technology has helped with this) and more discerning

5. Service Breakdown and style
Behavioral Style
Define
Strategies
LO 7-2
The role of behavioral style
Define
As discussed in chapter six, a behavior style plays a major role in how people will react in situations
Everyone is different, so it is important not to stereotype
Learn to deal with your own emotions and know your own style and understand how you tend to react in certain situations

6. Difficult Customers Types of difficult customers Examples LO 7-3
Dissatisfied
Indecisive or lack knowledge about product
Rude or inconsiderate
Talkative
Internal customers with special requests
English as a second language
Elderly and those in needs of extra assistance
Some type of disability

7. Handling Difficult Customers
Avoid Stereotyping
Strategies for dealing with each type
LO 7-3
How to handle these customers
Avoid stereotyping
Demanding customer
Be professional
Respect the customer
Be firm and fair
Focus on the needs of the customer
Tell the customer what you can do
Indecisive customers
Be patient
Ask open ended questions
Listen actively
Suggest other options
Guide decision making
Dissatisfied and angry customers
Listen
Remain positive and flexible
Smile
Be compassionate and empathize
Don’t make excuses
Take appropriate action
Reduce frustration for the customer
Rude or inconsiderate customers
Remain professional
Don’t resort to retaliation
Talkative customers
Remain warm and cordial but focused
Ask specific open ended questions
Use closed end questions to control
Manage the conversation

8. The Emotion Reducing Model
How the model works
How to use it
LO 7-4
The emotion reducing model
How it works
Before you can get your customer to calm down and listen to address the situation, you must first deal with their emotional state
Demonstrate patience
What to do
Use customer focused messages
For example, “I understand why you are frustrated” or “I see why you feel that way“ and apologize where necessary
Use open body language and smile

9. Reasons for Defection What is defection? Examples LO 7-5
Define
Defection occurs when you have not met a customers’ expectations and they go to your competitors instead
Poor service and not following through on complaints of poor service
Inappropriate compliant resolution
Unmet needs

10. Working with Internal Customers
Define
Strategies to use
LO 7-6
Working with internal customers
Define
Internal customers are also called co-workers
Stay connected
If you know of a special occasion, acknowledge it
Make efforts just to stop by or to say hello
Meet your commitments to others-if you say you are going to do something, follow through.
Don’t let your emotions fester-address them
Build a professional reputation
Adopt a good neighbor policy
Avoid gatherings of friends in a work area and lots of noise
Maintain good grooming and hygiene habits
Don’t overdo ccing of too many s
Don’t unload personal problems on co workers
Avoid gossip
Pitch in to help
Be truthful

11. Preventing dissatisfaction
Think like the customer
Pamper the customer
Respect the customer
Exceed expectations
LO 7-7
Strategies for Service recovery
Think like the customer
Pamper the customer
Respect the customer
Exceed expectations

12. Problem Solving Process
Uses/examples
The problem solving model
LO 7-8
Problem solving process
Problem solving model
Identify problem
Compile and analyze data
Identify alternatives
Evaluate alternatives
Make a decision
Monitor the results
Sometimes problems don’t’ need to be solved, a customer may just want to vent

13. Strategies for Service Recovery
Examples where you might need a strategy
Steps to recovery
LO 7-9
Service Recovery Strategy
Examples of situations that need recovery
A service provider lacked adequate knowledge to handle a situation
Attempts to return an item were hampered by policy
A customer was given the runaround
The customer was treated in a rude manner
Steps to recovery
Apologize and apologize again
Take immediate action
This isn’t always possible; if so offer alternatives
Show compassion
Provide compensation
Conduct follow up