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addressing
service breakdowns


bala chennupati
@balchenn
#ServiceBreakdowns
what is a service breakdown?
When the experience of the service falls below
people’s expectations.
the expectation




“Our goal is to make every flight a positive experience for customers.”
the experience
why we should address
     breakdowns
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
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
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
service recovery paradox
when things go wrong
 how to address a breakdown
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. ”
the basics

1. respond quickly

2. apologize

3. provide an explanation

4. offer a resolution
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
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)
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
bonus: make it fun
preventing breakdowns
what causes breakdowns?

    people’s expectations




           GAP




    people’s experience
what causes breakdowns?

     people’s expectations




  service activities by company




      people’s experience
what causes breakdowns?

    people’s expectations

      company vision




    people’s experience
what causes breakdowns?

    people’s expectations

      company vision


       service design




    people’s experience
what causes breakdowns?

    people’s expectations

      company vision


       service design


    service implementation


     people’s experience
what causes breakdowns?

    people’s expectations

      company vision


       service design


    service implementation


     people’s experience
what causes breakdowns?

    people’s expectations
                GAP

      company vision
                GAP

       service design
                GAP


    service implementation
                GAP

     people’s experience
the gaps model of service quality

        people’s expectations
                    GAP

          company vision
                    GAP

           service design
                    GAP


        service implementation
                    GAP

         people’s experience
seek feedback




                DROWNONLINE.COM
• 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
Feedback
the gaps model of service quality

        people’s expectations
                    GAP

          company vision
                    GAP

           service design
                    GAP


        service implementation
                    GAP

         people’s experience
make the vision tangible
University of Washington Medical Center Service Recovery Program
the gaps model of service quality

        people’s expectations
                    GAP

          company vision
                    GAP

           service design
                    GAP


        service implementation
                    GAP

         people’s experience
empower employees

how many people does it take to fix
my internet connection?
         2 twitter reps
         3 call center reps
         2 technicians
“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
the gaps model of service quality

        people’s expectations
                    GAP

          company vision
                    GAP

           service design
                    GAP


        service implementation
                    GAP

         people’s experience
set the right expectations




  Feedback
design for transparency

• Netflix example



• wayfinding signage in restaurant




                                     MUY YUM, FLICKR
conclusion
1. put the emphasis on people
2. design your organization to serve people
thank you.

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Addressing Service Breakdowns

  • 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.”
  • 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
  • 8.
  • 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
  • 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
  • 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
  • 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
  • 38.
  • 39. design for transparency • Netflix example • wayfinding signage in restaurant MUY YUM, FLICKR
  • 41. 1. put the emphasis on people 2. design your organization to serve people