Service Recovery Strategies

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Money

por Samuel Anderson-McCoy

Speed response: the higher it is, the smaller the amount of money required

The best solution is not only one recovery strategies, but a adequete combination of all the recovery strategies

Service failure

New customer expectation: fixe the problem

Clientes more dissatisfied of the recovery than the failure itself

Compensation

Econonomic incentive offered to counteract the inequity caused by service failure

Communication

Media press activites taken in order to make the customer aware of root causes and rescue processes

Decay effect: medium

Peak impact: medium

Build up medium

Apology

Convey politness, concern and empathy

Based on affective factor

Decay effect: rapid

Peak impact: weak

Build up: rapid

Quality improvement

Find solutions to avoid the failure in the future

Based on cognitive factor

Decay effect: long

Peak impact: high

Build up: long

Service Recovery Strategies

Objective

Recuperate consumer satisfaction

Reduce customers churn rates

Dynamic process composed of the interaction of: