The service recovery paradox is when a customer ends up having a greater opinion of a firm after a problem occurs. This is based on the idea that customers may be more impressed by a service recovery than they are unimpressed by the initial problem itself. The following are factors that may contribute to improved customer relationships after a failure.
HonestyCustomers have typically had experiences with firms, products and brands that attempt to downplay or hide failures. Quickly admitting to failures is often appreciated.
InformationWhen there is a problem, customers want information as to the cause of the problem and what steps are being taken to address it. An airline that explains delays in detail may gain higher ratings than an airline that keeps customers in the dark.
Speed of FixesIssues such as software bugs that get fixed promptly as opposed to festering for long periods of time.
ApologiesApologies for failures big and small are typically expected by customers.
Customer is Always RightRecognizing that perceived problems are problems.
CompensationCompensating the customer for inconveniences or losses.
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