Economists have come to recognize the importance of establishing trust and reciprocity in human interactions around financial transactions. Additionally, networks of trust and reciprocity are essential for bolstering all economic exchange. However, relatively less is known about the consequences of a violation of trust or reciprocity in customer relationships. When it comes to customer relationships, …
Financial compensation as a means to recover from service failures can serve as powerful tool. However, it is important that practitioners learn the ways in which to do this properly in order to receive the most desired outcomes for service recovery. Research from the Journal of Service Research examines the ways in which financial compensation …
It is commonly understood that service recovery efforts must follow in the wake of a service failure. But what if those recovery efforts are unsuccessful, creating what is called a “double deviation” from customer expectations? A research article published in the Journal of Service Research by Kenny Basso and Christiane Pizzutti provides insights on how …
“…customers are more satisfied with failed service encounters when they are aware the employee was reprimanded.” This research paper by Pugh et al. proposes a new and very cost-effective approach to mediate service recovery. To be effective, however, corrective actions must be performed in a very specific way: “One of the challenges associated with employee …
When done badly, service recovery can further damage the consumer trust. What can you do to restore the trust after failing a customer twice? As research shows, an apology and assurance that the problem won’t occur in the future are more effective than a monetary compensation. To learn more about the study, read SAGE blog post …
By Terry Cain EVERY EMPLOYEE, EVERY MINUTE, EVERY DAY…Making memorable moments for our customers…yeah, right!!! This idea of ‘culture eating strategy for breakfast’ applies to having a consistent customer experience via a consistency in the culture. Our cultures have cycles of virtue and cycles of vicious. Which cycle are you in? The Virtuous Cycle of …
