11
Recovering from Mistakes—Yours and Your Customer’s

Learning Objectives

By the end of this chapter, you should be able to:

• Identify causes of service breakdown.

• Develop a strategy for preventing service breakdown.

• Implement techniques for recovering following service breakdowns.

Just as customers have expectations of service in general, they have
specific recovery expectations that must he researched and understood.

Ron Zemke
Service Recovery: Fixing Broken Customers

THE NEED FOR SERVICE RECOVERY

Service recovery is the approach that you and your organization take to identify the causes for service breakdown and the subsequent actions you take to return the customer to a level of satisfaction where he or she will continue to do business with you. Much of this has to do with regaining the trust that you read about in Chapter 6.

When a customer does not receive the quality, quantity, or type of product or service that he or she believes was paid for, service breakdown often occurs. It is up to you to recognize concern or frustration in the words and actions of your customers. This is important since many customers will not tell you that they are dissatisfied. However, as you read in other chapters their displeasure often results in them deserting your organization for a competitor without telling you why they are leaving.

You can make a difference in helping ensure that your customers return to your organization even when things go wrong if you do a good job recovering from the mistake. Seventy percent of unhappy customers who have made minor purchases ($1 to $5 dollars) and fifty-four percent of those with larger purchases (over $100 dollars) will return to buy again if their complaints are resolved effectively and in a timely manner (E-Satisfy).

The reasons for failing to complain are:

• They believe that complaining is not worth their time (possibly based on past negative experiences or the low cost of the item or service involved).

• They believe that no one will listen anyhow.

• They don’t know to whom or where to complain. This is especially true when business is conducted with some organizations via the Internet.

Additionally, research shows that even when customers do complain many believe that their concerns are not adequately addressed (see Exhibit 11–1).

COMMON CAUSES OF SERVICE BREAKDOWN

Many things can cause customer dissatisfaction. Since each person has his or her own perspective on what to expect from a service provider, you have to be flexible in your approach to delivering service and ultimately recovering when service breaks down.

The following sections are common reasons that service does not live up to customer expectations.

CSR Factors That Can Lead to Dissatisfaction

There are several CSR factors that can lead to customer dissatisfaction. Some more common factors are listed here.

• Customer service was delayed. This might occur when there are not enough representatives to answer waiting calls or respond to e-mail messages, or when you put someone on hold for excessive amounts of time. Interestingly, one of the things that occurs when someone is on hold (even when there is recorded music or announcements being played over the phone) is that her or his perception of elapsed time speeds up. What they might perceive as minutes may actually be less that one minute. This is because the mind often fixates on the fact that they are not actively involved in a conversation or resolving the issue that they called about and instead focus on time.

• Inadequate CSR knowledge or skills. Customers expect professional and competent service from organizational representatives. They also expect you to be able to effectively communicate in a manner that expedites effective service. This is the reason that you reviewed the importance of preparation in Chapter 2. If you are not prepared to deal with a variety of customer issues, you can send a very negative message about yourself and your organization. At the same time, you can lose a customer.

• Rude or unprofessional behavior by a CSR. There is no excuse for unprofessional behavior when dealing with a customer. Remember that when the customer describes the event to friends, the cause of the dissatisfaction will not likely be the issue, however, the way you treated him or her will. If you are unsure of how to handle a situation or customer, or you have become emotional, escalate the call to a supervisor or team leader or pass it to another CSR for possible resolution.

• Improper handling of a customer request. This can happen when an incorrect item number or address is entered into a computer when you process an order. The customer then receives the wrong item or does not get it on time because it is routed improperly. To help avoid this, always repeat back any numbers (e.g., address, member/account number, or credit card number) given by a customer to verify correctness.

• Excessive transfers. If you have called an organization and ultimately been transferred to numerous people in an effort to resolve an issue or get an answer, you know the result of excessively transferring a customer. One simple way to prevent customer dissatisfaction related to transfers is to take ownership for a call. Many organizations have a two-party policy. In such organizations, the second person to speak with a customer “owns” the call. Here’s how it works. If you receive a transferred call from a coworker, you are now the second party so you accept ownership for the call. Even if you find after speaking to the customer that someone else might be better suited to handle the call, you work with the customer to handle the situation rather than transferring to a third CSR. You might tell the customer that CSR number three might have more information and offer the customer an option of an additional transfer. If the customer does not wish another transfer, tell him or her that you will take all the information, research the issue and get back to him or her by a designated time so that he does not waste any more valuable time. Another possibility occurs when you attempt to transfer a call, but after speaking to the second CSR, realize that he or she is not the appropriate party to assist the customer. You then reconnect with the customer and take ownership for the call since you are now the second party (CSR to speak with the customer). Take all the information needed, then research the call and get back to the customer.

• Missed deadlines. Failure to deliver as promised can quickly destroy confidence and trust in your ability to provide for customer needs. If it appears that you will not be able to deliver a product or service as agreed, immediately contact the customer to apologize, explain the situation and negotiate an alternate agreeable time or date. You will read about legal requirements related to delivery schedules in Chapter 12.

• The customer was inconvenienced. Think of how you feel when a service provider inconveniences you. Such inconvenience might come from having to repeat information several times because the CSR was not actively listening or was entering information into a computer. It could also be the result of lost information. In the latter instance the customer might have to resubmit or fax a form a second time because the original submission was lost.

Organizational Factors That Can Lead to Dissatisfaction

Sometimes, organizational factors can lead to dissatisfaction. Perhaps systems or procedures are faulty, or policies may not allow for successful resolution of a problem. In either instance customer frustration can result. Here are some ways in which systemic issues cause service quality problems.

• Organizational structure and systems that inhibit service. Often the procedures required for collecting and processing customer requests are too cumbersome to allow effective service. If you recognize that this is a problem or receive negative customer comments to this effect, immediately work on possible solutions and make recommendations to your supervisor or team leader. Examples of some of the more common organizational elements that hamper effective service delivery are the ordering process, deliver systems for products or services, response times, and the complaint handling process. Two additional areas which create customer frustration are reporting structures (how many levels of management you need to go through to resolve a customer issue) and CSR level of decision making or what you have authority to do without permission from above (e.g., refunding a customers money, exchanging a product, or providing some sort of retribution when something has gone wrong).

• Problem resolution is hampered by a policy. When a customer is told, “Policy says . . .” and offered no alternative solution to a problem, you can expect a service breakdown. It is your organization’s policy; therefore, it is up to you and the organization to find alternative solutions.

Customer Factors That Can Lead to Dissatisfaction

There are times when customers cause some of their own dissatisfaction. This occurs when there is:

• Failure to follow instructions. Many of the breakdowns that customers experience can often be traced back to their own failure to follow CSR directions or written instructions. This is especially true in the instance of technology-based products. This can lead to severe frustration and potential customer embarrassment. That is why you must use extreme tact and empathy when you are providing assistance. Take the time to listen to the customer’s concern and then in a nonthreatening manner verbally walk them through a step-by-step resolution. Through use of open-ended questions, active listening and patience, you can often assist most customers with the resolution of technical challenges or procedural issues.

• Lack of customer follow-through. There may be times when you do your utmost to communicate effectively and professionally deliver customer service and still fail because the customer does not follow-though on his or her commitments. For example, assume that you are a Technical Support Representative (TSR) on a help desk where a customer calls to complain of a malfunctioning computer. After trying numerous corrective steps and trying to identify the source of the problem, you cannot determine what is wrong. You inform the customer that for better service will need to bring the computer to an authorized service center, which he agrees to do. You also ask that until he brings the computer in that he write down any error messages received on the computer. Again, he agrees. Three days later, the customer shows up at the repair facility but has not written down error messages as promised. In such situations, it is up to the service representative handling the customer to practice sound positive communication skills and quickly resolve the issue. Even though the customer is at partial fault for failing to follow through, the service provider still has to remain professional and assist in problem identification and resolution.

RECOVERING FROM SERVICE BREAKDOWNS

There are many perspectives on what to do when service fails. Some CSRs take the approach that breakdowns are inevitable because you cannot please everyone. However, while you may not be able to meet all customer expectations (see Exhibit 11–2), you can certainly strive to do so. This section offers some ideas on what you can do to recover when customer expectations are not met.

The following is a list of some possible strategies for meeting customer expectations related to service recovery:

• Apologize. As soon as you learn of a service breakdown from a customer, you should apologize. Whether or not you feel you or your organization is at fault for the breakdown, assume ownership of the issue by taking the time to apologize for the breakdown and for your customer’s inconvenience. This action shows the customer that you are remorseful and will likely deflate some of her or his emotion. In apologizing, go further than simply saying, “I’m sorry,” which can add fuel to the customer’s emotional fire. If the customer is a sarcastic type of person, her or his response may well be, “I know you’re sorry and so is your entire company.” They may then launch into a tirade. To help prevent this type of scenario, offer something like, “I’m sorry to hear that this happened. I will do whatever I can to help make it right for you. Will you please tell me what happened?”

• Listen openly and empathetically. As you read in earlier chapters, when emotions are high, customers need an opportunity to vent without interruption. They need someone to listen to their experience without judging or offering excuses.

• Be firm, but fair. After you have gathered details of the incident, start looking for alternatives to help resolve the issue in the best interest of the customer and the organization. Use the Problem-Solving Model you read about in Chapter 7 to help accomplish this.

• Offer an explanation of cause. Do your best to try to explain how the situation occurred without pointing fingers at other people, organizations, policies, procedures, or whatever. Remain professional.

• Outline problem resolution. Tell the customer exactly what you will do to resolve the issue instead of being vague or indecisive (e.g., “What I can do is ...” versus “I guess we could try ...” or “I suppose I can call...”). Remember to tell the customer what you can do, not what you cannot do.

• Work to quickly resolve the issue. Recognize that because of something that the customer received from your organization that did not work well, he or she has now been required to take extra time and effort to correct the situation. Precious time has already been lost for which the customer is likely upset. Do whatever you can do to expedite the resolution process. If you will need to gather additional information, call others, or verify information, ask the customer for a number and request that they allow you to call them back to discuss the issue once you have what is needed. Remember that time on hold seems exaggerated, especially when someone is emotional. Act to help reduce further inconvenience to your customer.

• Provide options. When available, provide the customer with at least two options and allow them to choose which works best for them. Many people who have had a breakdown in service have lost trust in your ability and that of the organization. For that reason, they will often want to regain control of the situation. Allowing them to choose from available options can psychologically give them that control.

• Reassure often. Throughout the conversation, take the time to reassure the customer (e.g., “Ms. Ginsberg, I assure you that we’ll find a solution that will make you happy,” or “Mr. Petell, we will get this resolved as quickly” as possible. Again, I apologize for your inconvenience.”

• Keep the customer updated. If you have to research information or if the resolution process cannot be handled immediately while the customer is on the telephone, periodically update him or her. This is especially important if the issue is complicated and takes longer than you anticipated. In those instances, call the customer back to explain progress made and new timeline. Do not rely on mail or e-mail for this, since you have no way of knowing that the customer received the written message (unless you send certified mail or return notification on e-mail—assuming you and they both have that capability).

• Provide escalation options. Periodically, you may encounter a situation that requires higher authority to grant concessions, refunds, or exchanges. You may also have a customer who has lost faith that someone at the CSR level can adequately assist him or her. If you organization does not prohibit such escalations of calls, offer this as an alternative on a limited basis, or if requested by the customer. If your organization does encourage call escalation and frontline employees are empowered to make supervisory level decisions, explain that to the customer. If the customer insists on speaking to someone else, connect him or her to a team leader or supervisor rather than escalating his or her emotional level. Remember that the customer has already been inconvenienced once.

• Provide retribution. When someone has been inconvenienced, a showing of remorse or retribution is common in most organizations. The object of such a presentation is to make the customer whole again. What that means is that in addition to giving a customer what they originally paid for or was promised, you also provide something to compensate for her or his inconvenience or escalated emotional state caused by the service breakdown. In restaurants, this might be a free drink or desert when something about a customer’s meal does not meet expectations. Depending on what your organization provides, you might offer a free subscription to an advice newsletter the organization publishes, a free product, a discount off membership, travel, or other service fee charged to customers, or free delivery of a replacement product and the refund of any earlier delivery fee. If you are not sure of what you can offer in your own environment, speak with a supervisor or team leader before a service recovery situation presents itself.

The key to effective service recovery is to know what your options are and to be prepared to handle situations before a breakdown occurs and you are dealing with a customer.

Service recovery involved identification and resolution of situations in which products or services have not met customer expectations. The goal of such efforts is to return the customer to a level of satisfaction that will encourage him or her to return to your organization in the future. As a CSR, you play a key role in whether or not this occurs.

Often when service breaks down, customers do not complain because they feel that it is not worth their time, no one will listen anyhow, or they do not know how or to whom they should complain. Additionally, many customers who do complain often feel that their issue is not adequately dealt with.

Some common reasons for service breakdown include service delays, inadequate CSR knowledge and skill levels, rude or unprofessional CSR behavior, improper request handling, excessive transfers, missed deadlines, customer inconvenience, organizational structure and systems, problem resolution hampered by policies, failure of customers to follow instructions, and lack of customer follow-through.

To recover from service breakdowns, you need to start with an apology. Listen objectively to the customer’s issue and empathize with him or her. In working with the customer, be firm, but fair and explain the cause of the breakdown along with what you will do to help resolve the issue. Work quickly to resolve the situation by identifying and offering a variety of possible solutions and getting the customer involved in selection of the best option. It is also important to keep the customer updated on the status of resolution. If necessary, provide an opportunity for the customer to speak with others and ultimately ensure that you take action to demonstrate remorse for the service breakdown.