Episode C3.010 (AUSTRALASIAN) Customer Recovery

Introduction

Week four of your seriously social journey, a path that changed the way I do business forever and whose benefits regularly surprise me in terms of the opportunities they generate. One of the most painful moments is when we lose a customer not only does it impact your topline sales and most likely your bottom line profit but it takes up energy to replace them and often can impact on your mindset for the rest of the day or week depending how big a part of your wallet they were.

It is easy to get distracted by all the noise in the business world at large but jump day is your chance to settle in and work on your business in ways that allow you to make the most of your opportunities knowing which to grab hold of with both hands and which to let go.

One of the challenges in an established business as you continue to scale is coming to the understanding that Service failures are inevitable. However, research shows that in many cases it is considerably more profitable for a company to keep customers who have experienced failures than to try to find new customers. 

Regardless of a company’s experience and effort, some service failures are inevitable. Once a service failure has occurred, service recovery consists of anything a company does to restore customer satisfaction and loyalty to the pre-failure level. When customers experience a service failure, the key to customer retention lies in the service recovery effort companies make. 

IBGR is committed to your success and our programming is designed to give you the tools and resources as well as the one percenters you might be missing that are the difference between feeling like you are in the pilots seat or preparing for a crash landing.

Have a fantastic week, hopefully we have turned your hump day into jump day and you are all fired up for success.
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Show Objectives - The Why

"When it comes to service recovery, there are three rules to keep in mind:

1. Do it right the first time.
   
2. Fix it properly if it ever fails.
   
3. Remember: There are no third chances."
   

In today’s show, we review the benefits of effective recovery and share some recent research that uncovers the components of recovery quality. We will also discuss the importance of considering customer expectations and profitability when making service recovery decisions. Finally I will run through a model of service recovery that assists you in designing and implementing cost-effective service recovery systems that lead to long-term profitability. 


​Key Issues - Owner Perspective:

1. How do we identify at risk customers before they cease to be our customers? 
   
2. What are our service recovery processes and when do we apply them to ensure maximum customer recovery?
   
3. What are the different levels of recovery within our organisation and who is responsible for them?
   
4. What is our success rate and how do we improve it?
   
5. Do we have a triage or direct action approach to our customer retention.
   

What You Need to Know - The What

1. The difference between triage based and direct action recovery methodologies.
   
2. The elements of a good service recovery contact
   
3. The elements of the service recovery task
   
4. How to use complaint management as an effective service recovery tool.
   
5. The impact of service recovery programs to your business.
   

​What You Need to Do​​ - The How

1. Health check your customer journey for customer loss risks
   
2. Components of Essential and Attractive Service Recovery Quality Elements  and how they apply to your business
   
3.  Classifying Service Recovery Candidates   
   
4. An effective service recovery system should classify customers in such a way that firms can recover the customers who merit greater recovery efforts. Executives must collect and analyze data on customer profitability, customer expectations, and quality element levels.
   
5. Determine and Perform Appropriate Recovery Efforts 
   
6. Script your recovery procedure -
   

 • Use the database to retrieve customer classification information. 
 • Make appropriate recovery efforts for each customer. 
• Listen to the customer.
 

Shows
Previous: Episode C3.009 Balance Between Selling to the New and Servicing the Old  
Next: Episode C3.011 Sales Metrics & Earn Rate

Written by Simone Douglas 
The Publican & Licensee of the Duke of Brunswick Hotel, Executive Director for BNI Adelaide North one of the biggest networking organisations in the world, the driving force behind South Australia’s leading social media agency, Social Media AOK and now best-selling author with her first book “Seriously Social – turning your online game into real-world gain”.

You can connect with Simone on any of her seriously social platforms
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