Handling Customer Complaints And Managing Service Recovery 55d32
This document was ed by and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this report form. Report 445h4w
Overview 1s532p
& View Handling Customer Complaints And Managing Service Recovery as PDF for free.
More details 6h715l
- Words: 1,480
- Pages: 27
Chapter 5
Handling Customer Complaints and Managing Service Recovery
Chapter 5 Objectives z
z
z
z
To outline the courses of action open to a dissatisfied customer Explain the factors influencing complaint behaviour Identify the principles of an effective service-recovery system Explain the techniques for identifying the root cause of service failures Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
2
Customer Satisfaction z
Customer satisfaction is linked not only to fault free service, but also to what transpires when something does go wrong.
z
First law of quality might be: “do it right the first time” - but service failure does occur.
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
3
Figure 5.1: Customer Satisfaction Formula
Doing the job Right the first time
+
Effective complaint handling
=
Increased customer satisfaction & loyalty
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
4
Figure 5.2 How Customers Handle Dissatisfaction Seek redress directly from business firms Take some form of public action
Take legal action to obtain redress
Complain to business, private, or govt. agencies
Take some action Dissatisfaction occurs
Decide to stop buying product or brand or boycott seller Take some form of private action
Take no action
Warn friends about the product and/or seller
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
5
Customer Response to Service Failure z
z z
z
Do nothing, but the service provider’s reputation is diminished Complain to the service firm Take action with a third party such as ACCC Defect and do not use the provider again
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
6
Complaints as Research Data Responsive organisations look at complaints in two ways: z As a stream of market research information highlighting where improvements are needed z Series of individual customer problems which need to be solved
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
7
Capturing Complaints Complaints may be made through: z the service provider’s own employees z intermediary organisations acting on behalf of the original supplier z managers who normally work backstage but are ed by a customer seeking higher authority z suggestions or complaint cards mailed or placed in a special box z complaints to third parties
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
8
Complaining Behaviour in South-East Asia z
z
z
z
Asian consumers may be less willing to send written complaints than others Asian consumers are less likely to complain about poor service Service failures are more likely to be tolerated Individuals may restrain their own self interest if it would disturb others Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
9
SOCAP-TARP 1995 Study z
z
z z
57% of respondents had experienced at least one problem with products/services in the past 12 months 73% with a serious problem took some action to have it corrected (this varied between 49% and 93% depending on the industry and nature of problem). Only 34% who took action were satisfied with the way the problem was resolved 89% of those who were not happy with their complaint outcome said they would not deal with the same firm again Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
10
SOCAP-TARP 1995 Study (cont’d) z
z
z
Complaining households made an average 3.4 s in an effort to have their most serious problem resolved Satisfaction declined the further up the hierarchy the customer had to go to get it resolved On average, a dissatisfied complainant tells nine other people, while a satisfied complainant tells half as many
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
11
Factors Influencing Complaining Behaviour z z z z
Level of dissatisfaction i.e. does it seem worth it? Cost of complaining e.g. time and effort Benefits of complaining i.e. value of the outcome? Likelihood of resolution i.e. belief that the problem will/can be solved satisfactorily
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
12
Factors Influencing Complaining Behaviour z
Available resources for making a complaint
z
Access to a means of ing a complaint
z
Knowing who is to blame for the problem
z
Demographics e.g. younger and better educated people are more likely to complain
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
13
Standards for Complaint Handling “ The overriding aim of any complaints handling process is to turn dissatisfied consumers into satisfied consumers. This is best done by speedy and effective remedies at the first point of .”
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
14
Figure 5.4 Impact of response time on satisfaction with action taken on most serious problems % Exceeded/satisfied expectations with action taken 70 60
56% All respondents
50 39%
40
35%
34%
33% 25%
30
21%
20 10 0
Immediately 18%
Under
Within
24 hrs
48 hrs
8%
8%
3 -14 days 29%
15-28 days 8%
Over 28 days 29%
Perceived response time Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
15
Figure 5.5
Impact of number of s made to get problem resolved on satisfaction % Exceeded/satisfied expectations with action taken 70 60
55%
All respondents
50 37%
40
34% 27%
30
18%
20 10 0
1 27%
2
3-4 30%
19% Number of contracts (Average: 3.4)
5+ 24%
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
16
Figure 5.6 Impact of problem experience/complaining on Customer loyalty for all products/services % Exceeded/satisfied expectations with action taken 100 90
95 % 83 %
80 70 60
46 %
50 40
23 %
23 %
30 20
10 %
10 0 No problem
Exceeded Satisfied Mollified expectations complainants
Non-
Dissatisfied
complainant
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
17
Figure 5.7 Components of an effective service-recovery system Do the job right the first time
+
Effective complaint handling
Identify service complaints
=
Increased satisfaction & loyalty Conduct research Monitor complaints Develop ‘complaints as opportunity’ culture
Resolve complaints effectively
Develop effective systems & training in complaints handling
Learn from the recovery experience
Conduct root cause analysis
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
18
Service Recovery z
z
z
A crucial element in achieving a satisfied customer A true test of the organisation’s commitment to the customer Justice considerations have a large impact on how customers evaluate a provider’s recovery efforts
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
19
Figure 5.8 The role of justice in the complaint handling procedure
Justice Considerations
Procedure
Interaction
Outcome
Complaint handling process
Source: S.Tax and S.W. Brown, Handbook of Services Marketing and Management, © 2000, Reprinted by permission of Sage Publications Inc. Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
20
The Role of Justice in the Complaint Handling Procedure z
z
z
Procedural justice concerns the policies and rules that comprise the complaining process Interactional justice concerns the behaviour of the firm’s representatives during the complaint resolution process Outcome or distributive justice relates to how fairly consumer’s are compensated for their complaints Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
21
Principles of Effective Service Recovery z
Top management commitment
z
‘Complaints as opportunity’ culture
z
Training and empowerment
z
Ownership of complaint
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
22
Guidelines for Effective Complaint Resolution z
z
z
Act fast: time is of the essence to achieve full recovery Apologise but do not be defensive: it is important to impress on the consumer that the problem is an infrequent occurrence Show understanding for the customer’s viewpoint Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
23
Guidelines for Effective Complaint Resolution z
z
z z
Do not argue with customers: gather facts to reach a mutually acceptable solution Acknowledge the customer’s feelings to help build rapport Give customers the benefit of the doubt Clarify the steps needed to solve the problem Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
24
Guidelines for Effective Complaint Resolution z
z
z
Keep customers informed of progress: uncertainty breeds anxiety Consider compensation: this may reduce further complaints and legal action Persevere to regain customer goodwill: outstanding recovery efforts can build loyalty and referrals Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
25
Learning From Experience z
Blueprinting: understand the processes behind service delivery to identify potentially weak links
z
Control charts: displaying performance as measured by specific criteria over a period of time
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
26
Learning From Experience z
Fishbone diagram: a cause and effect analysis
z
Pareto analysis: 80/20 rule
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
27
Handling Customer Complaints and Managing Service Recovery
Chapter 5 Objectives z
z
z
z
To outline the courses of action open to a dissatisfied customer Explain the factors influencing complaint behaviour Identify the principles of an effective service-recovery system Explain the techniques for identifying the root cause of service failures Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
2
Customer Satisfaction z
Customer satisfaction is linked not only to fault free service, but also to what transpires when something does go wrong.
z
First law of quality might be: “do it right the first time” - but service failure does occur.
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
3
Figure 5.1: Customer Satisfaction Formula
Doing the job Right the first time
+
Effective complaint handling
=
Increased customer satisfaction & loyalty
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
4
Figure 5.2 How Customers Handle Dissatisfaction Seek redress directly from business firms Take some form of public action
Take legal action to obtain redress
Complain to business, private, or govt. agencies
Take some action Dissatisfaction occurs
Decide to stop buying product or brand or boycott seller Take some form of private action
Take no action
Warn friends about the product and/or seller
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
5
Customer Response to Service Failure z
z z
z
Do nothing, but the service provider’s reputation is diminished Complain to the service firm Take action with a third party such as ACCC Defect and do not use the provider again
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
6
Complaints as Research Data Responsive organisations look at complaints in two ways: z As a stream of market research information highlighting where improvements are needed z Series of individual customer problems which need to be solved
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
7
Capturing Complaints Complaints may be made through: z the service provider’s own employees z intermediary organisations acting on behalf of the original supplier z managers who normally work backstage but are ed by a customer seeking higher authority z suggestions or complaint cards mailed or placed in a special box z complaints to third parties
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
8
Complaining Behaviour in South-East Asia z
z
z
z
Asian consumers may be less willing to send written complaints than others Asian consumers are less likely to complain about poor service Service failures are more likely to be tolerated Individuals may restrain their own self interest if it would disturb others Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
9
SOCAP-TARP 1995 Study z
z
z z
57% of respondents had experienced at least one problem with products/services in the past 12 months 73% with a serious problem took some action to have it corrected (this varied between 49% and 93% depending on the industry and nature of problem). Only 34% who took action were satisfied with the way the problem was resolved 89% of those who were not happy with their complaint outcome said they would not deal with the same firm again Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
10
SOCAP-TARP 1995 Study (cont’d) z
z
z
Complaining households made an average 3.4 s in an effort to have their most serious problem resolved Satisfaction declined the further up the hierarchy the customer had to go to get it resolved On average, a dissatisfied complainant tells nine other people, while a satisfied complainant tells half as many
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
11
Factors Influencing Complaining Behaviour z z z z
Level of dissatisfaction i.e. does it seem worth it? Cost of complaining e.g. time and effort Benefits of complaining i.e. value of the outcome? Likelihood of resolution i.e. belief that the problem will/can be solved satisfactorily
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
12
Factors Influencing Complaining Behaviour z
Available resources for making a complaint
z
Access to a means of ing a complaint
z
Knowing who is to blame for the problem
z
Demographics e.g. younger and better educated people are more likely to complain
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
13
Standards for Complaint Handling “ The overriding aim of any complaints handling process is to turn dissatisfied consumers into satisfied consumers. This is best done by speedy and effective remedies at the first point of .”
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
14
Figure 5.4 Impact of response time on satisfaction with action taken on most serious problems % Exceeded/satisfied expectations with action taken 70 60
56% All respondents
50 39%
40
35%
34%
33% 25%
30
21%
20 10 0
Immediately 18%
Under
Within
24 hrs
48 hrs
8%
8%
3 -14 days 29%
15-28 days 8%
Over 28 days 29%
Perceived response time Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
15
Figure 5.5
Impact of number of s made to get problem resolved on satisfaction % Exceeded/satisfied expectations with action taken 70 60
55%
All respondents
50 37%
40
34% 27%
30
18%
20 10 0
1 27%
2
3-4 30%
19% Number of contracts (Average: 3.4)
5+ 24%
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
16
Figure 5.6 Impact of problem experience/complaining on Customer loyalty for all products/services % Exceeded/satisfied expectations with action taken 100 90
95 % 83 %
80 70 60
46 %
50 40
23 %
23 %
30 20
10 %
10 0 No problem
Exceeded Satisfied Mollified expectations complainants
Non-
Dissatisfied
complainant
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
17
Figure 5.7 Components of an effective service-recovery system Do the job right the first time
+
Effective complaint handling
Identify service complaints
=
Increased satisfaction & loyalty Conduct research Monitor complaints Develop ‘complaints as opportunity’ culture
Resolve complaints effectively
Develop effective systems & training in complaints handling
Learn from the recovery experience
Conduct root cause analysis
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
18
Service Recovery z
z
z
A crucial element in achieving a satisfied customer A true test of the organisation’s commitment to the customer Justice considerations have a large impact on how customers evaluate a provider’s recovery efforts
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
19
Figure 5.8 The role of justice in the complaint handling procedure
Justice Considerations
Procedure
Interaction
Outcome
Complaint handling process
Source: S.Tax and S.W. Brown, Handbook of Services Marketing and Management, © 2000, Reprinted by permission of Sage Publications Inc. Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
20
The Role of Justice in the Complaint Handling Procedure z
z
z
Procedural justice concerns the policies and rules that comprise the complaining process Interactional justice concerns the behaviour of the firm’s representatives during the complaint resolution process Outcome or distributive justice relates to how fairly consumer’s are compensated for their complaints Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
21
Principles of Effective Service Recovery z
Top management commitment
z
‘Complaints as opportunity’ culture
z
Training and empowerment
z
Ownership of complaint
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
22
Guidelines for Effective Complaint Resolution z
z
z
Act fast: time is of the essence to achieve full recovery Apologise but do not be defensive: it is important to impress on the consumer that the problem is an infrequent occurrence Show understanding for the customer’s viewpoint Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
23
Guidelines for Effective Complaint Resolution z
z
z z
Do not argue with customers: gather facts to reach a mutually acceptable solution Acknowledge the customer’s feelings to help build rapport Give customers the benefit of the doubt Clarify the steps needed to solve the problem Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
24
Guidelines for Effective Complaint Resolution z
z
z
Keep customers informed of progress: uncertainty breeds anxiety Consider compensation: this may reduce further complaints and legal action Persevere to regain customer goodwill: outstanding recovery efforts can build loyalty and referrals Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
25
Learning From Experience z
Blueprinting: understand the processes behind service delivery to identify potentially weak links
z
Control charts: displaying performance as measured by specific criteria over a period of time
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
26
Learning From Experience z
Fishbone diagram: a cause and effect analysis
z
Pareto analysis: 80/20 rule
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia
27
Related Documents 2w1qw
Handling Customer Complaints And Managing Service Recovery 55d32
November 2019 33
Customer Complaints Handling Ppt 5c474h
November 2019 104
Bni Customer Complaints Handling Procedure 3o3pj
November 2022 0
Customer And Service Recovery 5s4lg
November 2019 33
Web Based Customer Grievance Handling System - Complaints Entry 4z1wr
October 2019 73