Service Recovery Paradox


Performance Management Counseling

The Service Recovery Paradox- Leveraging your mistakes!

How many times have you failed to meet the expectations of your clients because of a service delivery failure?  If’ your like most service providers, you never thought of this as an opportunity to enhance customer satisfaction and loyalty!  The reality is, most of us either try to “justify” our mistakes or we simply avoid dealing with them altogether.  But justifying or avoiding a failure always result in a poor customer experience.  Moreover, by not addressing a failure, we completely miss a prime opportunity to build a stronger customer relationship.

A picture is worth a thousand words… so check out this figure displaying how customer loyalty (and dissatisfaction with the service failure) can improve when a service recovery is successful.

File:ServiceRecoveryParadoxon.png
http://en.wikipedia.org/wiki/Service_Recovery

Note that loyalty is actually higher in the long run when a service failure and recovery occurred.  This “recovery” is the paradox. At first…

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