In most instances (in fact all instances), you are in business to make money, the way you make money differs depending on the type of service/product sold, but the main way you will make money is through customer retention. I’m sure you have heard the rule that 80% of profit is generated via only 20% of customers. Therefore customer satisfaction is invaluable in ensuring long term longevity of your organisation and of course profit!
I’m sure that most organisations don’t intentionally do things to irate customers, but often things can go wrong which results in a dissatisfied (and sometimes extremely dissatisfied) customer or customers. This is where service recovery comes in!
Service recovery is the practice of having policies and procedures in place to recover from inadequate service in a bid to retain the customer’s trust.
A service recovery strategy is important to have in place because if service failures are left unfixed it can result in customers leaving, spreading negative word of mouth, or even challenging the organisation through third parties (refer to the consumers blog regarding the four type of complainer categories).
Furthermore, effectively resolving customer problems has a strong impact on customer satisfaction, loyalty and word-of-mouth communication. In fact, a well designed service strategy also ensures the information can be used to improve your service offerings as part of a continuous improvement effort.
So how can you ensure you have an effective service recovery strategy in place? There are a few things you can do. One thing to do, is to sit with your staff and brainstorm all the ways customers interact with your organisation, from this list you can then work out what activities can go wrong during this interaction and what steps should be in place to rectify the situation. Alternatively, you can speak with the team at Vent2Me and we will work with you and your organisation to develop a comprehensive service recovery strategy that is easily actionable.
The other thing organisations need to do, is to encourage your customers to become voicers, because these type of consumers only complain directly to the organisation and do not undertake in negative word of mouth communication.
These consumers also offer you the invaluable opportunity to receive immediate feedback which can result in immediate service recovery and improvements. It really comes down to the fact that you can only fix a problem if you are aware of it! More will be discussed on how to encourage your customers to become voicers in weeks to come.
Until next week,
Cents and Sensibility
Julia Taine, Executive Director of Vent2Me, is a marketing problem solver and mentor. A mover and a shaker, Julia sees a niche in an industry, and takes it, by making it her own. Julia started Vent2Me, because people she knew were struggling with their online presence and their digital strategies. Julia knew she could help these people, and so here she is today.