How to make even more satisfied customers than before (Service Recovery Paradox)

’No one is perfect”

The saying ‘’No one is perfect.’’ goes for businesses and individuals alike, there will always be mistakes to be made – even from some of the best businesses in the world. These mistakes are often found in a break of communication, this break happens on the customer-employee level in which misunderstandings lead to unsatisfied customers. What marks the difference from a normal business to a great business; however, is the ability to learn from these mistakes and prevent the same mistakes from reoccurring in the business.

Service Recovery Paradox

The ‘’Service Recovery Paradox Model’’ (illustrated below) illustrates how, by using the right approach to resolving a service failure can enhance the loyalty of your customers.

The service failure in the model is marked with red (non dotted line) and shows after the service recovery, (meaning correcting the failure the customer experienced) the red line crosses the blue line (dotted line) in the figure. The blue line is a normal customer experience without any failures and the blue arrow shows the difference between the normal customer, the customer with the service failure, the recovery that is referred to as the ‘’Service Recovery Paradox’’.

To conclude the model, a business can have even more loyal and satisfied customers if they handle the service recovery for the customer appropriately. The customer with a successful service recovery after a service failure is going to become more satisfied, loyal, and happy with the company, than the customer without a service recovery.

That does not mean a company should create a failure in order to have even more satisfied customers after a potential service recovery, it means that it is important for the company to put focus on their unsatisfied customers. Every unsatisfied customer can be turned into a customer ambassador, an extremely satisfied customer, if the complaint is resolved quickly and efficiently.

Customers often dread bringing a complaint to a company’s attention, they tend to experience a negative feedback from the company. Reacting in a positive manner will create an unexpected, but pleasant, experience for the customer, and exceed his expectations.

The Service Recovery Paradox:

When your team performs a service recovery by solving unexpected errors and apologizing to the customer, they follow through the service recovery process with a gift card, a bottle of red wine, or flowers. Small gifts can be used to gain a lifetime customer, as opposed to a customer potentially leaving and telling everyone about the bad experience at your dealership.



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