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Module 1: Developing Customer Relationships

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Complaint Handling and Service Recovery - Part 3

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MODULE OVERVIEW

Recognize power of service guarantees.
Understand how to design effective service guarantees.
Know when firms should not offer service guarantees.
Be familiar with the seven groups of jay customers and understand how to manage them effectively.

SERVICE GUARANTEES

One way for particularly customer-focused firms to institutionalize professional complaint handling and effective service recovery is through offering service guarantees.
A well-designed service guarantee not only facilitates effective service recovery, but also institutionalizes learning from service failures and subsequent system improvements.
Service guarantees should be designed to meet the following criteria

Unconditional
Easy to understand and communicate
Meaningful to the customer
Easy to invoke
Easy to collect on
Credible



IS IT ALWAYS BENEFICIAL TO INTRODUCE A SERVICE GUARANTEE?

Managers should think carefully about their firm’s strengths and weaknesses when deciding whether or not to introduce a service guarantee.
There are a number of situations in which a guarantee may not be appropriate-
Companies with a strong reputation for service a excellence may not need a guarantee. In fact, it can be incongruent with their image to offer one as it might confuse the market.

A jaycustomer is defined as someone who acts in a thoughtless or abusive way causing problems for the firm, its employees and other customers.
CONSEQUENCES OF DYSFUNCTIONAL CUSTOMER VBEHAVIOR

Dysfunctional customer behavior affect frontline staff, other customers and the organization itself.
Staff morale can be hurt, with implications on both productivity and quality.
Consequences for customers can take both positive and negative forms.
Companies suffer financially when demotivated employees no longer work as efficiently and effectively as before.

CONCLUSION

In this module we understood the importance of service guarantees.
Next we, explained how to design effective service guarantees.
Also learnt when firms should not offer service guarantees.
Finally discussed about the seven types of Jaycustomers and ways to manage them effectively.