The Excellent Economics Of Service Recovery
October 12, 2012 1 Comment
Most customer service and CX professionals intuitively understand that their companies need to do a good job in recovering from an experience miscue. An unhappy customer is never a good thing. So we decided to do a quantitative analysis of the relationship between service recovery and consumer spending. As you can see in the chart below:
- Any improvement in service recovery has a positive effect on future spending patterns.
- Moving service recovery from very poor to neutral limits the amount of decrease in future spending.
- Moving service recovery from neutral to very good not only limits decreases in spending, but also increases the number of people that will spend more in the future.
- Companies that do a very good job with service recovery have more customers planning to increase spending than decrease spending.
Companies that want to improve their service recovery should follow our C.A.R.E.S. model:
- Communication (clearly communicate the process and set expectations)
- Accountability (take responsibility for fixing the problem or getting an answer)
- Responsiveness (don’t make the customer wait for your communication or a solution)
- Empathy (acknowledge the impact that the situation has on the customer)
- Solution (at the end of the day, make sure to solve the issue or answer the question)
The bottom line: Mistakes are inevitable, so recovery is critical.