Slides from my IA Summit talk. March 25, 2012.

1. addressing
service breakdowns
bala chennupati
@balchenn
#ServiceBreakdowns

2. what is a service breakdown?
When the experience of the service falls below
people’s expectations.

3. the expectation
“Our goal is to make every flight a positive experience for customers.”

4. the experience

5. why we should address
breakdowns

6. breakdowns affect business
90% of customers who are dissatisfied with service they
received will not come back or buy again
SOURCE: RESEARCH INSTITUTE OF AMERICA

7. breakdown = bad publicity
Only 4% of unhappy customers bother to complain.
For every complaint heard, 24 others are communicated
to potential customers, but not to the company.
SOURCE: RESEARCH INSTITUTE OF AMERICA

9. good recovery = loyalty
Of the customers who register a complaint, between
54% and 70% will do business again with the
organization if they receive a response to their
complaint.
That figure goes up to 95% if the customer feels that
the complaint was resolved
SOURCE: RESEARCH INSTITUTE OF AMERICA

10. service recovery paradox

11. when things go wrong
how to address a breakdown

12. a good response from 20x200.c0m
“I'm so sorry about the delay in shipping your order.”
“We always want to make sure the prints are perfect
before we ship them and it sometimes slows us
down!”
“I'm going to refund the shipping and handling fee
you paid right now. ”

13. the basics
1. respond quickly
2. apologize
3. provide an explanation
4. offer a resolution

14. providing an explanation
“You increase my rates by 60% and don’t even
bother to explain why or give me a single reason to
remain a customer?”
ethicalbusinessbuilder.com

15. the resolution - what people expect
The influence of service failure and service recovery on airline passengers’ relationships with domestic
airlines: an exploratory study. P.G. Mostert, C.F. De Meyer & L.R.J. van Rensbur (2009)

16. the right resolution
If the breakdown occurs due to mistakes or errors by the
service personnel or external sources the recovery should
be psychological – the employees need to apologize for
the inconvenience.
If the error however is due to errors in the service
architecture the recovery effort needs to be tangible and
the customer should be compensated.
The service encounter: diagnosing favorable and unfavorable incidents.
Bitner, Booms, Tetrault. (1990)
via designforservice.wordpress.com

17. bonus: make it fun

18. preventing breakdowns

19. what causes breakdowns?
people’s expectations
GAP
people’s experience

20. what causes breakdowns?
people’s expectations
service activities by company
people’s experience

21. what causes breakdowns?
people’s expectations
company vision
people’s experience

22. what causes breakdowns?
people’s expectations
company vision
service design
people’s experience

23. what causes breakdowns?
people’s expectations
company vision
service design
service implementation
people’s experience

24. what causes breakdowns?
people’s expectations
company vision
service design
service implementation
people’s experience

25. what causes breakdowns?
people’s expectations
GAP
company vision
GAP
service design
GAP
service implementation
GAP
people’s experience

26. the gaps model of service quality
people’s expectations
GAP
company vision
GAP
service design
GAP
service implementation
GAP
people’s experience

27. seek feedback
DROWNONLINE.COM

28. • Get periodic feedback
Feedback
http://www.nytimes.com/2008/10/12/magazi
ne/12tipping‐
t.html?_r=1&hp=&adxnnl=1&pagewanted=1&
adxnnlx=1330372820‐
CG9Z1Vopw96ds6+ZaFWL1g

29. Feedback

30. the gaps model of service quality
people’s expectations
GAP
company vision
GAP
service design
GAP
service implementation
GAP
people’s experience

31. make the vision tangible

32. University of Washington Medical Center Service Recovery Program

33. the gaps model of service quality
people’s expectations
GAP
company vision
GAP
service design
GAP
service implementation
GAP
people’s experience

34. empower employees
how many people does it take to fix
my internet connection?
2 twitter reps
3 call center reps
2 technicians

35. “Too often companies desire to do everything well, and they
create a kind of exhausted mediocrity. Employees can’t do
everything well: When you optimize a system to be both
best in class at speed and best at thoroughness, you’re
going to wind up being average at both.”
Frances Frei, author of Uncommon Service

36. the gaps model of service quality
people’s expectations
GAP
company vision
GAP
service design
GAP
service implementation
GAP
people’s experience

37. set the right expectations
Feedback

39. design for transparency
• Netflix example
• wayfinding signage in restaurant
MUY YUM, FLICKR

40. conclusion

41. 1. put the emphasis on people
2. design your organization to serve people

42. thank you.