CUSTOMER FEEDBACK AND

SERVICE RECOVERY WITH

CUSTOMER COMPLAINING
BEHAVIOUR
INTRODUCTION
 Customer feedback is very
crucial for the success of any
organization. It will decide upon
whether the service provider will
get the fruits of providing
services to customers. If the
customer feels satisfied then he
will again buy the services. And
if he/she feels dissatisfied then
there comes the point of service
failure.
 Service failure may be defined as the “ Inability
of the service provider to provide the desired
level of services to its customers as they had
been promised.”
 It may be because of :-
 Unavailability of the services
 Service quality is not as promised
 Service delivery is too slow
 Service delivery is too late
 Employees are indifferent.
CUSTOMER COMPLAINING
BEHAVIOUR
To be able to deal effectively
with dissatisfied customers
and to recover the services
failure, managers need to
understand key aspects of
complaining behaviour .
 Customer response options to service failures
complain to the
Take some service firm
form of
public action Complain to a
third party

Service Take some Take legal action

Encounter is form of to seek redress
unsatisfactory private action
Defect (switch
provider)
Take no
Negative word of
action mouth

Any one or combination of

these responses is possible
Understanding Customer Responses
to Service Failure
 Why do customers complain?
 Obtain compensation
 Release their anger
 Help to improve the service
 Because of concern for others
 What proportion of unhappy customers
complain?
 Why don’t unhappy customers complain?
 Who is most likely to complain?
 Where do customers complain?
Customer expectation about their
complaints

ProComplaint Inte
handling and service Out
recovery process
ced ract co
ural ive me
just just just
ice ice ice
Customer satisfaction with the service
recovery
Failure to handle customer
complaints
 Customers go elsewhere
 They talk to others about firm
 They won`t come back
So, companies should have effective
complaint handling system in the
organization for dealing with complaints.
Dealing with Complaining Customers and
Recovering from Service Failure
 Take complaints professionally and not
personally
 Be prepared to deal with angry customer who
may behave in an insulting way to service
personnel who may not be at fault
 Take the perspective that customer
complaints allow firm a chance to
 Correct problems,
 Restore relationships
 Improve future satisfaction for all
 Develop effective service recovery procedures
Dealing with complaint
• Solve the problem
Special bonus
Dishonest customers
Why the customer feedback is
important
 It can help improve a product or service
 It offers the best way to measure customer
satisfaction
 It provides actionable insight to create a better
customer experience
 It can help improve customer retention
 It delivers tangible data that can be used to
make better business decisions
 It can be used to identify customer advocates
Ways or tools to get feedback from
customers
 Surveys
 Feedback boxes
 Reach out directly
 Mystery shopping
CASE STUDY

VANILLA ICE CREAM THAT PUZZLED

GENERAL MOTORS