Presented by

A S Athira
Aswanth R S
Dharsana R
Reena Koshy
 A service failure, simply defined,
is service performance that fails to meet a
customer s expectations.
 Service failure is the opposite of customer
satisfaction.
 Service failure refers to not being able to
perform the service that a company has
promised
1. Core service failures.

 Slow service
 Unavailable service
 Other core service failures

Eg: Lack of chair to accommodate a family

2. Responses to implicit/explicit requests

Special needs
Customer preferences
Customer error
Disruptive others

Eg: Unavailability of a special hair color in a hair spa &

saloon
3. Unprompted/Unsolicited employee actions

Level of attention
Unusual action
Cultural norms
Adverse conditions

Eg: Serving food which was different from ordered in a

restaurant
4. Problematic customer behavior

Drunkenness
Verbal and Physical abuse
Breaking company policies or laws
Uncooperative customers

Eg: Drunken person creating a conflict

 “An expression of dissatisfaction made to an
organisation, related to its products or services, or the
complaints handling process itself, where a response or
resolution is explicitly or implicitly expected”
 • Their expectations have not been met
• Obtain compensation
• Vent their anger
• Help to improve the service
• Because of the concern for others who also use the service

WHAT PROPORTION OF UNHAPPY CUSTOMERS COMPLAIN?

- Generally 9% to 37% of unhappy customers make complaints to the firms.

- The rest never bother to complain.

WHY DON’T UNHAPPY CUSTOMER COMPLAIN?

- They think it is not worth the time or effort.

- They further think that no one would be concerned about their problem or
solve it.
- They do not know where to go and what to do.
 The customers has 2 separate needs when complaining.
- needs relating to the complaint
- needs as individuals

 Example 1:
- Complaint – The product I not working as expected
- Underlying message – I don’t understand the new technology,
I need help

 Example 2:
- Complaint – I was disappointed with the service during my
last visit.
- Underlying message – I am testing the value you place on my
loyalty to your business.
NEEDS RELATING TO THE NEEDS AS INDIVIDUALS:
COMPLAINT:

 To have their concern dealt  To be heard

with quickly, fairly and
properly.  To be understood
 To be respected
 To be given what they have
been denied and perhaps an
apology.

 To have action taken to

rectify a problem or address
a concern
 • Plays a crucial role in achieving customer satisfaction by testing
a firm’s commitment to satisfaction and service quality
• Impacts customer loyalty and future profitability
• Severity and “recoverability” of failure (e.g., spoiled wedding
photos) may limit firm’s ability to delight customer with
recovery efforts

SERVICE RECOVERY PARADOX:

Customers who experience a service failure that is satisfactorily
resolved may
be more likely to make future purchases than customers without
problems
 If second service failure occurs, the paradox disappears
METHODS:

• Be proactive—on the spot, before customers complain

• Plan recovery procedures

• Teach recovery skills to relevant personnel

• Empower personnel to use judgment and skills to develop

recovery solutions
 ‘Service guarantee’ defined as, “an assurance of the
quality of or length of use to be expected from
product offered for sale, often with a promise of
reimbursement.”
 Hart, Schlesinger and Maher define a service
guarantee as “a statement explaining the service
customers can expect (the promise) and what the
company will do if it fails to deliver (the payout)”.
 Easy to Collect
 Easy to Invoke
 Easy to Understand
 Meaningful
 Unconditional
 Sets Clear Standards for the Organisation.
 Forces the Company to Focus on its Customers.
 A Good Service Guarantee Studies the Impact on
Employee Morale and Loyalty.
 Immediate and Relevant Feedback from Customers.
 Reduces their Sense of Risk and Builds Confidence
in the Organisation for Customers
 Single-attribute specific guarantee.
 Multi-attribute specific guarantee.
 Full-satisfaction guarantee.
 Combined guarantee.
 One key attribute of the service is covered by the
guarantee.

For example;
"Any of three specified popular pizzas is guaranteed to
be served within 10 minutes of ordering on working days
between 12 A.M. and 2 P.M. If the pizza is late, the
customer's next order is free.
 A few important attributes of the service are
covered by the guarantee.

For example;
Minneapolis Marriott's guarantee: "Our quality
commitment to you is to provide:
 A friendly, efficient check-in
 A clean, comfortable room, where everything
works
 A friendly, efficient check-out
If we, in your opinion, do not deliver on this
commitment, we will give you $20 in cash. No
question asked. It is your interpretation."
 All aspects of the service are covered by the
guarantee. There are no exceptions.

For example;
Lands' End's guarantee: " If you are not completely
satisfied with any item you buy from us, at any time
during your use of it, return it and we will refund your
full purchase price. We mean every word of it.
Whatever. Whenever. Always. But to make sure this is
perfectly clear, we've decided to simplify it further.
GUARANTEED. Period."
 All aspects of the service are covered by the full-
satisfaction promise of the guarantee. Explicit
minimum performance standards on important
attributes are included in the guarantee to reduce
uncertainty.
For example;
Datapro Information Services guarantees "to deliver
the report on time, to high quality standards, and to the
contents outlined in this proposal. Should we fail to
deliver according to this guarantee, or should you be
dissatisfied with any aspect of our work, you can deduct
any amount from the final payment which is deemed as
fair."