CUSTOMER COMPLAINING BEHAVIOR AND

SERVICE RECOVERY
 WHAT IS A COMPLAINT?

• “An expression of dissatisfaction made to an organisation,

related to its products or services, or the complaints handling
process itself, where a response or resolution is explicitly or
implicitly expected”
CUSTOMER RESPONSE CATEGORIES TO SERVICE
FAILURES
WHY DO CUSTOMERS COMPLAIN?
• Their expectations have not been met
• Obtain compensation
• Vent their anger
• Help to improve the service
• Because of the concern for others who also use the service

WHAT PROPORTION OF UNHAPPY CUSTOMERS COMPLAIN?

- Generally 9% to 37% of unhappy customers make complaints to the firms.

- The rest never bother to complain.

WHY DON’T UNHAPPY CUSTOMER COMPLAIN?

- They think it is not worth the time or effort.

- They further think that no one would be concerned about their problem or
solve it.
- They do not know where to go and what to do.
 THE CUSTOMERS NEED WHEN THEY COMPLAIN
• The customers has 2 separate needs when complaining.
- needs relating to the complaint
- needs as individuals

• Example 1:
- Complaint – The product I not working as expected
- Underlying message – I don’t understand the new technology, I need
help

• Example 2:
- Complaint – I was disappointed with the service during my last visit.
- Underlying message – I am testing the value you place on my loyalty
to your business.
 THE CUSTOMERS NEED WHEN THEY COMPLAIN
NEEDS RELATING TO THE NEEDS AS INDIVIDUALS:
COMPLAINT:

• To have their concern dealt with • To be heard

quickly, fairly and properly.
• To be understood
• To be given what they have been • To be respected
denied and perhaps an apology.

• To have action taken to rectify a

problem or address a concern
THREE DIMENSIONS OF PERCEIVED FAIRNESS IN
SERVICE RECOVERY
 SERVICE RECOVERY
• Plays a crucial role in achieving customer satisfaction by testing a
firm’s commitment to satisfaction and service quality
• Impacts customer loyalty and future profitability
• Severity and “recoverability” of failure (e.g., spoiled wedding photos)
may limit firm’s ability to delight customer with recovery efforts

SERVICE RECOVERY PARADOX:

Customers who experience a service failure that is satisfactorily resolved may
be more likely to make future purchases than customers without problems
– If second service failure occurs, the paradox disappears
COMPONENTS OF AN EFFECTIVE SERVICE RECOVERY
SYSTEM
STRATEGIES TO REDUCE CUSTOMER COMPLAINT
BARRIERS
 HOW TO ENABLE EFFECTIVE SERVICE RECOVERY

METHODS:

• Be proactive—on the spot, before customers complain

• Plan recovery procedures

• Teach recovery skills to relevant personnel

• Empower personnel to use judgment and skills to develop recovery

solutions