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Customer Complaints & Handling

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by

richa gupta

on 13 September 2012

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Transcript of Customer Complaints & Handling

Customer Failure & Recovery CUSTOMER COMPLAINTS & HANDLING It is a failure in providing service as per the customer’s expectations in such a way that leads to customer dissatisfaction. SERVICE FAILURE TYPES OF SERVICE FAILURE SERVICE UNAVAILABLE WHEN PROMISED;
SERVICE DELIVERED TOO LATE OR TOO SLOWLY;
SERVICE OUTCOME IS INCORRECT
UNSATISFACTORY BEHAVIOR OF SERVICE EMPLOYEES TYPES OF CUSTOMERS Friendly customers
Timid customers
Knowledgeable customers
Argumentative customers TYPES OF CUSTOMER COMPLAINTS Product specific
Wait times
Misunderstanding
Delivery error
Personnel CUSTOMER COMPLAINT RESOLUTION Complaints is the voicing of dissatisfaction about the product or service related directly or indirectly to the customer’s experience of the product. In today’s world with the rising expectation of the customer, there needs to be increased focus on complaint handling WHY PEOPLE COMPLAIN Positive Consequences.
Compensation.
Believe fair treatment and good    services are their due.
Social Obligation.
Complaining Personality. WHY PEOPLE DO NOT
COMPLAIN People hold opposite beliefs.
Waste of Time.
Waste of Effort.
No Expectation. GUIDELINES ON HOW
TO HANDLE COMPLAINTS Listen to the customer and understand his problem.
Do not defend yourself at this point.
Always repeat the complaint back to the client.
Apologize but do not blame anyone or anything.
Empathize and not sympathize.
Explain the action you would take along.
Make sure the customer is informed.
Check if the client is happy with the solution.
Finally thank the customer for bringing the issue to your attention. CUSTOMER EXPECTATIONS FOR RECOVERY Expectations come from
Past experiences
Current needs
Feedback from others
Competitors experience TYPES OF CUSTOMER EXPECTATIONS DESIRED LEVEL OF EXPECTATIONS
ADEQUATE LEVEL OF SERVICE
ZONE OF TOLERANCE Managing customer expectations
Perform the service reliably
Communicating effectively with the customers.
Delighting and surprising the customers.
Customer service performance.
Customer relationships. WHAT CUSTOMERS EXPECT FAIR TREATMENT Outcome fairness
Procedural fairness
Interactional fairness SERVICE RECOVERY STRATEGIES Many companies have learned the importance of providing excellent recovery for disappointed customers.
In this section we examine their strategies and share examples of benchmark companies and what they are doing.
Do it right the first time.
Encourage and track complaints.
Act quickly.
Provide adequate explanations.
Treat customers fairly.
Cultivate relationships with customer.
Learn from recovery experiences.
Learn from lost customers. SERVICE GUARANTEES A Guarantee is a particular type of recovery tool. In a business context, a guarantee is a pledge or assurance that a product offered by a firm will perform as promised, and if not then some form of reparation will be undertaken by the firm. BENEFITS OF SERVICE GUARANTEES Focus on customers
Clear standards
Relevant feedback
Retaining customers
Integrated and continuous improvement
Employee morale and loyalty enhanced.
Builds confidence of customers in organisation CHARACTERISTICS OF AN EFFECTIVE SERVICE GUARANTEE Unconditional
Meaningful
Easy to understand and communicate
Easy to invoke and collect WHEN TO USE (OR NOT) A GUARANTEE Existing service quality in the company is poor.
A guarantee does not fit the company’s image.
Service quality is truly uncontrollable.
Potential exits for customer abuse of the guarantee.
Costs of the guarantee outweigh the benefits.
Customers perceive little risk in the service.
Customers perceive little variability in service quality among competitors. CASE STUDY EFFECTIVE FULFILLMENT OF CUSTOMER EXPECTATIONS
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