Business
Context
For most unhappy customers, it is too late to retain them once a bad
service experience has occurred. Research shows that 85-95% of
unhappy customers will never complain about a servicing problem,
but will quietly take their business elsewhere. More than 90% of
these dissatisfied customers will never come back.
Some of these
lost customers become significant liabilities for a business.
Their disappointment, dissatisfaction, disaffection, and departure
create market damage in three ways:
- They don’t repurchase from the offending business
- They tell their story to others and recommend that they not
purchase from that business
- They take their business elsewhere and tell some customers
of that business their story, thereby reinforcing those
customers’ loyalty to that business
To prevent the negative financial impact unhappy customers can
create, businesses need to have an effective service recovery
process. An effective service recovery process is one in which 80%
of a businesses target customers are retained through appropriate
remedies after a problem has occurred.
Effective service recovery is critical for a business because:
- It costs at least five times as much to acquire a new
customer as it does to retain an existing one
- “Satisfactory” recovery—actual resolution of the
problem—will lead 70% of complaining customers to do business
with the company again; and if the resolution is perceived as
both prompt and fair, that number rises to more than 90%
- 50% of customers who perceive problem resolution to be
prompt and fair become “apostles” who refer and recommend a
business to others in unusually frequent and positive word of
mouth.
Target Audience
Target participants include the executive team and managers in
the customer service organization, sales organization, and
internal support functions, in an organization committed to
pursuing customer loyalty as a key business strategy.
Key Topics
The Science of Service Recovery a 1-day program that focuses on
the following:
- Service Recovery: What it is and why it is important
- Key components of an effective service recovery system
- Service recovery and your most profitable customers
- Common service recovery mistakes
- Appropriateness of recovery efforts
- Standards for service recovery
- Establishing boundaries for employee action
- Application planning and transfer
Outcomes
At the conclusion of this course participants will be able to:
- Calculate the costs and potential ROI of their own customer
opportunities
- Understand the financial and business implications of
negative customer experiences
- Define potential business vulnerabilities for their business
- Define a service recovery strategy for their business, work
unit, or process area
- Identify service recovery opportunities, appropriate actions
and value to customer
- Establish appropriate boundaries for employee actions
- Create a communication plan
For More Information
For more information, contact Carpe Diem Consultants, Inc. at
info@loyalty-cdci.com
or call us at 877-733-1320
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