How To Design A Service Recovery Process

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What is Customer Feedback Service Recovery?

• It is the service recovery process that occurs when your customer provides a negative response in their customer feedback survey.

• A special type of service recovery but one that can drive substantial value for the business.

• Process is initiated on receipt of negative feedback or a request for action in a customer feedback process: customer survey, Net Promoter® questionnaire, etc.

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Why is Service Recovery Important?

Service Recovery Is Important Because…

• It generates more profit for your business

• It increases the success of your customer feedback process

– Recent research (The 9 Secrets of Customer Feedback and Action) shows• Organizations that implement service recovery as part of their customer feedback process are

more successful.

• It drives up business value

– Clients find service recovery substantially increases customer life time value

– It has a positive ROI• i.e. the value created is more than the cost of performing the process.

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The Steps You Need to Implement Service Recovery

1. Decide To Do It

• Sounds simple but the first step for management to decide that they will invest in this process.

• An active decision needs to be taken because you will need to allocate resources and planning to the process.

• In the short term it will cost money and time to implement.

• Note: We contend that this process is actually cost neutral – all it does is show costs hidden elsewhere

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2. Design your Service Recovery Process

• Run a process design workshop to create your Service Recovery Process.

– Ensure all the right are people in the room so that you can make decisions and move quickly• Customer service, operations, sales, etc..

• Two basic approaches

– a. Triage and Re-direct• One person or a small team is responsible for receiving all of the requests.

• They parsing these requests out to the correct people in the rest of the organization.

• They are also responsible for following up to ensure that the case has been closed.

– b. Direct Action• Direct the request straight into the applicable part of the organization for action

• Direct Action is the most efficient but it is also the most difficult to implement due to the automation needed

• Suggestion: start with Triage and move Direct Action over time7

2. Design your Service Recovery Process

• Respond Quickly and Take Action

– Whichever approach you take you need to close the loop with the customer quickly.

– Set target times• one business day or perhaps same business day

– Contact customer via their preferred channel

– Customer will be shocked that • Someone has even read their customer feedback form

• They are even more shocked that something is actually happening

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3. Document the Process

• Set it into place in the organization

• Whatever you document has a much better chance of being followed day in and day out

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4. Calculate the Value You Are Creating

• Analyze your customer data to calculate the value

– After 3, 6 or 12 months analyze the data to identify the impact that you are having on customer value

– Look at:• improved retention rates for unhappy customers

• Increased sales from unhappy customers.

• Costs for the service recovery process

• Most Organizations discover Service Recovery is a net profit driver

– Now any resource constraints you have will disappear

– Management will be pushing you to expand the process!

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Free: Ultimate Service Recovery Implementation Guide

• Everything You Ever Wanted to Know About Service Recovery– This guide provides the latest

information on the benefits of service recovery and practical best practices on its implementation in your business.

• You Will Learn– Why implement service

recovery

– Sources of service recovery leads

– Designing your service recovery process

– Elements of a good service recovery contact

– The service recovery contact

– Reporting

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Click Here toDownload Now

How To Design A Service Recovery Process

This presentation is based on a longer blog post:

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Click Here toRead the

Whole Post

Adam Ramshaw

• Founder and Owner of Genroe

• Deep experience in

– Customer Feedback

– Net Promote Score

– Customer Experience Manager

– Quality system and processes

• Click to connect with me on:

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