Chapter 07 – Service Breakdowns and Service Recovery
7-15
• An apology should come immediately after the discovery of the customer’s
dissatisfaction and should be delivered in person, if possible.
B. Take Immediate Action
• As soon as the customer has identified a problem, service providers must set
about positively resolving it.
• Service providers should avoid saying no without offering service options.
• There may be times when, even though service providers want to give
customers exactly what they want, they will not be able to do so because of
regulations or prohibitions.
o In such cases, it is important to use interpersonal skills to let the
customer know that the service provider is prohibited from fulfilling their
needs.
• In some situations, service providers may want to help a customer but cannot
because their abilities, time constraints, resources, or the customer’s timing
of a request prevent fulfillment.
o In such instances, service providers should show a willingness to assist
and meet the customers’ requests even though they are prevented from
doing so.
• There might be other occasions when service providers or their organization
does not meet a customer’s request even though it is possible to do so.
C. Show Compassion
• To help the customer see that one’s remorse and desire to solve a problem
are genuine, the service provider must demonstrate empathy.
• If service providers disregard customers’ feelings, they may not give the
service providers a chance to help resolve the breakdown.
D. Provide Compensation
• Service providers should prove to customers that they are valuable and that
they are trying to make up for their inconvenience or loss.
o This penance or symbolic self-punishment should be significant enough
that the customer feels that the service provider and his or her
organization have suffered an equal loss.
• Not only must the recovery compensate original loss, it should give additional
value.
Chapter 07 – Service Breakdowns and Service Recovery
7-16
E. Conduct Follow-Up
• The only way to find out whether the service provider was successful in his or
her recovery efforts or whether the customer is truly satisfied is to follow up.
o The preferable methods are face-to-face questioning or a phone call.
X. Disaster Planning Initiatives in the Service Recovery Process
• Hurricanes Katrina and Sandy, the Oklahoma tornadoes of 1999 and 2013, and
other similar natural catastrophes all have one thing in common—they
devastated homes and businesses on a massive scale.
o For organizations that did not have an active disaster preparedness or
contingency plan, the results were dramatic and paralyzing financially and
from an operational standpoint.
• The U.S. Small Business Administration suggests that organizations take at least
the following actions to prepare for potential disaster situations in order to remain
functional or to more effectively recover should a catastrophe strike:
o Create a preparedness program for the business.
o Identify critical business functions and systems.
o Create an emergency communications plan.
o Test preparedness systems regularly.
o Build a disaster preparedness kit.
• As a result of such unthinkable destruction, many organizations have taken
proactive measures to create and rehearse disaster preparedness and
contingency plans.
o They store vital information and data at reinforced offsite facilities in various
geographic regions and via cloud technology.
Chapter 07 – Service Breakdowns and Service Recovery
7-17
Class Activities and Sample Assignments
7-1 and 7-9)
3. Ask students to use figure 7.8 to develop a specific service recovery process and
options for the following situations: (LO 7-1 and 7-9)
a. For servers at a restaurant: a customer doesn’t like his food.
4. This chapter discusses a problem-solving process, a useful tool for not only
customer service but all aspects of life. Present De Bono’s six hats model. The six
hats model is similar to the problem-solving process presented on page 256 but
provides a visual way to go through the process. Provide materials for students to
make hats, one for each color (or, if you have time limitations, you can make them
and provide them to each group). Then, have the students break into groups of six,
making sure each group has each hat represented. Then, ask the students to solve
the problems (from the customer service perspective) listed on page 233 using each
hat. A handout for students which describes each hat follows this section. For more
5. Ask students to get into groups and discuss the reasons for workplace gossip.
Chapter 07 – Service Breakdowns and Service Recovery
De Bono’s Six Hats
The White Hat calls for information known or needed. “The facts, just
the facts.”
Example: The reservation agent may not have added early check-in to
reservation.
The Green Hat focuses on creativity; the possibilities, alternatives, and
new ideas. Use it to generate possible solutions.
Example: Offer another room, store bags, pay for lunch, ask
housekeeping to make room a priority, upgrade to a suite, put
customer in a neighboring hotel.
The Yellow Hat allows you to explore the positives and probe for value
and benefit. The yellow hat allows you to see the benefits of the
proposed solutions.
Example: Customer will be happier.
The Black Hat is judgment—the devil’s advocate or why something
may not work. Spot the difficulties and dangers of where things might
go wrong. The black hat asks you to look at the negatives of a
solution.
Example: Customer may still be angry.
The Red Hat signifies feelings, hunches and intuition. When using this
hat, you can express emotions and feelings and share fears, likes and
dislikes. This gives people the chance to share their “gut” feelings
about the solutions.
Example: Customer is tired and cranky from traveling; you are
frustrated with reservations department.
The Blue Hat is used to manage the thinking process. It makes sure all
hats are used and summarizes the information, allowing the group to
make a decision.
Example: Offer to store customer’s bag, buy him lunch in hotel, and
7-19
Adapted from: The de Bono Group, LLC., http://www.debonogroup.com/six_thinking_hats.php
ask housekeeping to work on customer’s room immediately.
Chapter 07 – Service Breakdowns and Service Recovery
7-20
Discussion Opportunities
1. As you read in this chapter, a service breakdown occurs when customer
expectations are not met. As a customer service professional, what are some ways
2. Discuss a type of difficult customer you have had to deal with in your current or past
workplace. What strategies did you use to work with the customer? Did the
3. What is a customer-focused message in the emotion-reducing model? List five
4. Are there any places of business you have defected from? What were your
reasons? What could the organization have done differently to prevent your
5. Have you ever worked with someone who did not have a “good–neighbor policy” as
described in this chapter? Describe the situation and what the person should have
Chapter 07 – Service Breakdowns and Service Recovery
7-21
In the Real World Notes
Retail/Manufacturing—Coca Cola
Coca-Cola is a soft drink brand that is recognized worldwide. The drink is one of the
most recognized corporate logos and is sold in over 200 countries through 250 bottlers
throughout the world.
The Coca-Cola story began in Atlanta, Georgia, in 1886 when pharmacist John
Pemberton was experimenting with a recipe that he later mixed with carbonated water
and began to sell at his drugstore. Two years after its invention, Pemberton sold his
secret formula to a businessman by the name of Asa Candler, who formed a
corporation to bottle and distribute the trendy drink. He later sold the rights to two other
businessmen who wanted to bottle the drink to enhance distribution. Candler sold syrup
that his company produced to these distributors, but not his secret formula. They simply
mixed the syrup with carbonated water and bottled it. From there, the product became a
household name as more people began to take Coca-Cola home to enjoy.
Competitors soon emerged. To ensure that people could tell the original from these
wannabes, the distributors created the trademarked contour bottle in 1916 so that
customers would recognize the original product. Candler ultimately sold his company in
1919 to a group of investors with Robert Woodruff as the president. The new group
wanted to make Coca-Cola available anytime and anyplace. To accomplish this, the
new company started adding bottling plants all over the world.
The six “Ps” of the company vision statement highlight Coca-Cola’s purpose and
desired future objectives—people, portfolio, partners, planet, profit, and productivity.
To assist in accomplishing its vision, the company established the Coca-Cola
Foundation in 1984. This entity focuses on helping and giving back to communities
worldwide. Some of the issues supported in various countries include water stewardship
(providing safe, clean drinking water), lifestyle/behavioral change programs (e.g.,
nutrition, exercise, and behavior modification), recycling, and education.
1. What is your opinion of the Coca-Cola Company? Explain.
Chapter 07 – Service Breakdowns and Service Recovery
7-22
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
years.
2. Based on what you know or read on the Internet or through other sources, do you
believe that the company is customer focused? Why or why not?
3. How does the company’s community involvement potentially affect its image in the
eyes of customers or potential customers?
Chapter 07 – Service Breakdowns and Service Recovery
7-23
Work It Out Notes
Work It Out 7.1—Handling Service Breakdowns
This box asks students, in groups, to determine the best solutions for the service
breakdowns listed in figure 7.1. While it is important to figure out what to do in case
these things happen, reiterate to your students that development of good processes and
a customer service mentality can prevent these things from happening in the first place.
Remind them that even though something may be someone else’s fault, they are the
ones who interface with the customer, they will be the ones to hear about it from
customers, and they will need to be the ones to fix it. After students are finished
discussing in groups, ask them to share their answers with classmates.
Work It Out 7.2—Service Breakdown Examples
This box asks students to discuss in groups their experience with service breakdowns
and resolutions to those breakdowns. This box can create a good discussion on what
should be done versus what is actually done. If you have time, extend the group
discussions into a whole-class discussion of breakdowns and recoveries.
Work It Out 7.3—Handling the Demanding Customer
This box asks students to survey customer service professionals in various professions
to see how they handle demanding and domineering customers. This will likely create
some lively discussion. You can also address how different industries may handle the
same types of problems differently. Here you can also discuss the term empowerment
and how empowered employees are able to create service recoveries.
Work It Out 7.4—Dealing with Angry Customers
This box discusses some of the challenges in dealing with angry customers. It asks
students to think of situations in which they have had to deal with an angry customer,
what they did to reduce tension, and how these situations can be handled. In turn, you
can also ask students about situations in which they have been the angry customer and
if the situation was handled at an acceptable standard.
Work It Out 7.5—Responding to Rudeness
This box asks students to brainstorm a list of rude comments that customers can make.
While the possibilities can be endless, ask the students to come up with ten and then
Chapter 07 – Service Breakdowns and Service Recovery
7-24
ask them to rank them from the most offensive to the least offensive. Then, ask your
students to brainstorm possible responses.
Work It Out 7.6—Building your Skills
This box asks students to visit a business or store (possibly a mall) and engage in
customer service interactions with customers. Then, it asks students to analyze the
effective techniques in customer engagement. You can ask students to choose which
ones they would like to work on off of their lists. Then, ask them to set a goal and
specific objectives to focus on to improve these skills.
Work It Out 7.7—Focusing on the Customer
This box asks students to think about possible customer service strategies that were not
included in this chapter. Here, you can point out that some of the simplest things such
as being pleasant and using good manners.
Chapter 07 – Service Breakdowns and Service Recovery
7-25
End-of–Chapter Material Notes
Key Terms
• Angry customers (p. 241)
• Customer defection (p. 246)
• Customer expectations (p. 232)
• Demanding or domineering customers (p. 237)
• Difficult customers (p. 236)
• Dissatisfied customers (p. 240)
• Emotion-reducing model (p. 246)
• Indecisive customers (p. 239)
• Needs (p. 232)
• Problem-solving model (p. 256)
• Prohibitions (p. 261)
• Rude or inconsiderate customers (p. 243)
• Service breakdowns (p. 232)
• Service options (p. 261)
• Strategies for preventing dissatisfaction (p. 252)
• Talkative customers (p. 244)
• Underpromise and overdeliver (p. 242)
• Wants (p. 232)
Review Questions
1. What is meant by the term service breakdown? Define.
2. What causes customers to become dissatisfied?
3. What tactics can you use to deal with angry customers?
7-26
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
should reassure them that he or she will make it work out.
4. What can you do to assist indecisive people in coming to a decision?
5. Why might some customers feel they have to demand things from others?
6. How can you effectively deal with rude or inconsiderate customers?
7. What are some strategies for refocusing a talkative customer?
8. What are some strategies for preventing customer dissatisfaction? List them.
9. How does the emotion-reducing model work?
Chapter 07 – Service Breakdowns and Service Recovery
7-27
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
positive reinforcement and communication throughout the interaction. Service
providers should solve the problem and then provide another customer-focused
message.
10. Why do customers defect?
11. What strategies can you use to build strong relationships with co-workers?
12. List the strategies for effective problem solving.
Service providers should use the problem-solving model, which is a series of steps
13. What is service recovery and when do you need to implement it?
customer having to ask and make sure to perform follow-up.
Collaborative Learning Activity
This activity asks students to role-play with each other on how to handle a variety of
customer service situations. Consider asking one or two students to role-play for the
entire class while the class addresses the questions in the activity:
1. How well was service provided?
2. Were any negative or unclear messages, verbal or nonverbal, communicated? If so,
Chapter 07 – Service Breakdowns and Service Recovery
7-28
service encounter?
4. What open-ended questions were used to discover customer needs? What others
could have been used?
Face to Face—Handling Service Breakdowns at AAA Landscaping
In this situation, the reader is the owner of a landscaping company that didn’t seem to
meet the customer’s expectations. The customer has called several times reminding
you that there are some aspects to the contract that have not yet been met. After
several phone calls, you finally send someone out to complete the job.
The first question asks if you provided good service to the customer. Not returning
phone calls and not completing a job is not acceptable, so no, you did not provide very
good service.
The second question asks about the customer’s needs, which in this case were simple.
They were included in the contract, but you did not fulfill the obligation or meet his
needs. The work was supposed to be done by Saturday in time for a party the customer
was having, but not only was this deadline missed, it wasn’t until a week or two later
that you finally got around to finishing the customer’s work.
The third question addresses what you could have done differently. First, finishing one
job before starting another is good business sense and you did not do this. Trying to
balance too many jobs at once will likely make all jobs mediocre at best. Second, when
you realized the work wasn’t done on time, the customer should have been notified
immediately. Finally, you should have followed up with the customer even if you didn’t
hear anything back from him once the work was finished. A follow-up call should occur
to make sure the customer needs were met.
Finally, it is doubtful that you will get a good recommendation from this person or that he
will pass business on to you. You had an opportunity for service recovery but did not
meet the expectations of the customer.