How to Restore Customer Satisfaction after Customer Service Failure

A customer service failure, simply defined, is customerThe data available at the point of any customer
service performance that fails to meet an individual'sservice failure, most notably the information provided
expectations. Typically, when a service failure occurs,by the customer at the time of the complaint, should
a customer will expect to be compensated for thebe viewed as critical marketing research data
inconvenience in the form of any combination ofnecessary not only for immediate service recovery
refunds, credits, discounts or apologies.but for improvement of future performance.
The success of such customer service recoveryRemember, a customer service failure is defined as a
efforts is determined by the individual's expectationsfailure to meet customer expectations and the
and perceptions of the organization. Two keysuccess of any recovery effort is measured by each
elements impact any effort to restore customerindividual customer against his/her own expectations.
satisfaction: the strength of customer relationships andTherefore, managers would be well served to conduct
the severity of service failure.a post-recovery assessment of customer
Service failure: Service performance that fails to meetexpectations and perceptions of recovery
expectationsperformance against those expectations.
The strength of the customer relationship with theClassic customer service failure: serving cold
organization prior to a customer service failure has aThe impact of service failure recovery on customer
buffering effect in the event of failure. Researchsatisfaction can be easily illustrated with a familiar
suggests that customers who expect the relationshipexample. Consider the case of a restaurant patron
to continue actually have lower service recoverycomplaining about his meal being served cold. In all
expectations, and in turn, are more satisfied withlikelihood, this is not a severe customer service failure if
customer service performance after recovery.managed properly.
While this may seem counterintuitive at first glance,If the customer's server fails to offer a sufficient
consider the expectations of customers with aapology and brings back a reheated meal after a
stronger relationship with the organization. A customer20-minute wait, a first-time customer may be
who does not have much commitment to theimmediately deterred and never return. If this is a
organization tends to be more transaction-focused andlong-time customer who has always received
expects immediate service recovery when a particularexcellent service, he may or may not write this failure
transaction fails to meet expectations.off, but either way will expect this sub-par service to
Conversely, a customer with strong commitment maybe countered with excellent service in the future.
demand less immediate compensations with theWhile you may expect the customer with a long
expectation that strong future interactions may correcthistory of having received excellent service to be
the customer service failure over time. Such findingsmore demanding in the case of such a failure, in reality
suggest that service providers not only havethe new customer has the higher expectations. His
measures in place to identify the strength of customerperceptions of the restaurant are impacted by only this
relationships but also the ability to react to customerone experience where customer service performance
service failures.failed to meet his expectations. Without a formal
The severity of the customer service failureapology from a supervisor, a refund, and perhaps a
moderates the relationship between customerfuture credit, this new customer may allow this
satisfaction and commitment. Even with strong serviceexperience to so alter his expectations of customer
recovery, research indicates that customers may stillservice performance at this restaurant as to prevent
be upset, engage in negative word-of-mouth, and behim from returning.
less likely to develop trust with and commitment to theThe long-time customer has his expectations set by a
organization, if the original customer service failure waslong history of excellent dining experiences and may
really bad.be easier to satisfy in the immediate wake of a
In these cases, managers may need to do more tocustomer service failure.
mend the strength of customer relationships andIn either case, the restaurant manager must
restore commitment. To identify such cases, serviceimmediately begin to turn his focus on ensuring future
organizations need to track and identify occurrencesservice delivery levels and enhancing the strength of
of customer service failure as well as the severity ofcustomer relationships with each of these patrons.
each.