The Service Recovery Paradox: Dispelling The Myth

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Executive Summary

Service failures happen, and most are less dramatic than the Titanic disaster. However, even seemingly small failures can lead to customer dissatisfaction if they are not well addressed by the company. This dissatisfaction often leads to customer switching and negative word of mouth. To improve retention, companies increasingly engage in service recovery - either through a complaints handling process or proactively soliciting input via satisfaction surveys or informal feedback at the conclusion of the service.

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