Skip to content
Product cover

Recovering and Learning from Service Failure

October 15, 1998 | Stephen S. Tax , Stephen W. Brown | Marketing

Effective service recovery is vital to maintaining customer and employee satisfaction and loyalty, which contribute significantly to a company's revenues and profitability. Yet most customers are dissatisfied with the way companies resolve their complaints, and most companies do not take advantage of the learning opportunities afforded by service failures. The authors provide a research-based approach for helping managers develop a comprehensive service recovery system.

To encourage dissatisfied customers to complain, leading firms set performance standards, often through the use of guarantees; communicate the importance of recovery to employees; train customers in how to complain; and use technological support offered through customer call centers and the Internet. In resolving problems, companies need to focus on providing fair outcomes, procedures, and interactions. Successful companies develop hiring criteria and training programs that take into account employees' service-recovery role, develop guidelines for service recovery, are easily accessible to customers, and use the information in customer databases to solve problems.

Firms promote organizational learning by documenting and classifying complaints; useful methods include creating internal complaint forms, accessing complaints made to front-line employees, and categorizing customers who complain. Finally, companies need to generate additional information on service quality, disseminate it to those responsible for implementing improvements, and identify those process improvements that will have the greatest impact on profitability.

Customer conflicts are inevitable. A powerful service-recovery strategy can turn these conflicts into opportunities to improve performance and raise profitability.

Purchase Options

Educator and Student Discounts Available. Learn more »

  BENCHMARKS  
Loading Time: Base Classes  0.0011
My Controller Construct  0.0005
Build Nav  0.0022
Controller Execution Time ( Products / Route )  0.0929
Total Execution Time  0.0940
  GET DATA  
No GET data exists
  MEMORY USAGE  
1.5662 MB
  POST DATA  
No POST data exists
  URI STRING  
store/recovering-and-learning-from-service-failure
  CLASS/METHOD  
products/route
  DATABASE:  MITSLOAN_DEV   QUERIES: 68  (Hide)
0.0003  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0003  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0003  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '049b43ff65816669ae20f2af4a9b247a'
ORDER BY `created_at` DESC 
0.0002  

SELECT SQL_CALC_FOUND_ROWS cat_id
FROM (`product_categories`)
WHERE `status_id` =  'A'
AND `url_friendly` =  'recovering-and-learning-from-service-failure'
AND `parent_id` =  1 
0.0096  

SELECT c.parent_id, c.format_id
                    FROM products AS p, products AS c
                    WHERE p.prod_id = c.parent_id AND
                        c.avail_id IN ('A','B','D') AND
                        c.type_id = 'V' AND
                        (
                            c.sku = 'recovering-and-learning-from-service-failure' OR
                            if(c.format_id = 'Certificate', '', p.url_friendly) = 'recovering-and-learning-from-service-failure'
                        )
                    LIMIT 1 
0.0003  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  2245 
0.0003  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '2245' 
0.0004  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '2245'
ORDER BY `sort` ASC 
0.0002  

SELECT `cat_id`
FROM (`product_categories__products`)
WHERE `prod_id` =  '2245' 
0.0003  

SELECT *
FROM (`product_flags__products`)
WHERE `prod_id` =  '2245' 
0.0006  

SELECT `sku`
FROM (`products__xsell`)
WHERE `prod_id` =  '2245'
ORDER BY IF(position = 0, 1, 0) ASC , `position` 
0.0294  

SELECT `products`.`parent_id`
FROM (`transaction_lines`)
JOIN `products` ON `products`.`sku` = `transaction_lines`.`sku`
JOIN `product_categories__products` ON `products`.`parent_id` = `product_categories__products`.`prod_id`
WHERE `products`.`avail_id` =  'A'
AND TO_DAYS(transaction_lines.updated_at) < (TO_DAYS(NOW()) - 90)
AND `product_categories__products`.`cat_id` IN ('247') 
GROUP BY `products`.`parent_id`
ORDER BY COUNT(*) DESC
LIMIT 6 
0.0023  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '1211' 
0.0003  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '1211' 
0.0013  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '1211'
ORDER BY `sort` ASC 
0.0002  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '305' 
0.0008  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '305' 
0.0003  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '305'
ORDER BY `sort` ASC 
0.0003  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '1325' 
0.0011  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '1325' 
0.0006  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '1325'
ORDER BY `sort` ASC 
0.0006  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '523' 
0.0004  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '523' 
0.0027  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '523'
ORDER BY `sort` ASC 
0.0039  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '3987' 
0.0003  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '3987' 
0.0012  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '3987'
ORDER BY `sort` ASC 
0.0005  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '339' 
0.0005  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '339' 
0.0005  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '339'
ORDER BY `sort` ASC 
0.0005  

SELECT SQL_CALC_FOUND_ROWS media_id, position
FROM (`media`)
WHERE `foreign_key_table` =  'products'
AND `foreign_key_column` =  'prod_id'
AND `foreign_key_value` =  '2245'
AND `kind` =  'image_600x600'
ORDER BY IF(position = 0, 1, 0) ASC , `position` 
0.0004  

SELECT *
FROM (`media`)
WHERE `media`.`media_id` =  '1010' 
0.0004  

SELECT *
FROM (`mime_types`)
WHERE `mime_types`.`extension` =  'jpg' 
0.0005  

SELECT *
FROM (`media_metadata`)
WHERE `media_id` =  '1010' 
0.0005  

SELECT SQL_CALC_FOUND_ROWS media_id, position
FROM (`media`)
WHERE `foreign_key_table` =  'products'
AND `foreign_key_column` =  'prod_id'
AND `foreign_key_value` =  '2245'
AND `kind` =  'gallery_image'
ORDER BY IF(position = 0, 1, 0) ASC , `position` 
0.0006  

SELECT *
FROM (`products`)
WHERE `avail_id` IN ('A', 'B', 'C', 'H') 
AND `parent_id` =  '2245'
AND `type_id` =  'V'
ORDER BY IF(position = 0, 1, 0) ASC , `position`, `title` 
0.0004  

SELECT `c`.`format_id`, `c`.`price`, `c`.`sale_price`
FROM (`products` AS c)
WHERE `c`.`prod_id` =  '2246'
LIMIT 1 
0.0017  

SELECT SQL_CALC_FOUND_ROWS media_id, position
FROM (`media`)
WHERE `foreign_key_table` =  'products'
AND `foreign_key_column` =  'prod_id'
AND `foreign_key_value` =  '2246'
AND `kind` =  'thumbnail'
ORDER BY IF(position = 0, 1, 0) ASC , `position` 
0.0020  

SELECT `product_categories__products`.`cat_id`
FROM (`product_categories__products`)
JOIN `product_categories` ON `product_categories__products`.`cat_id` = `product_categories`.`cat_id`
WHERE `product_categories__products`.`prod_id` =  '2245'
AND `product_categories`.`parent_id` =  1
AND `product_categories__products`.`cat_id` NOT IN (1, 261)  
0.0016  

SELECT `cat_id` AS id, `parent_id` AS parent, `status_id`, `name`, `description`, `url_friendly`, `page_title`, `meta_keywords`, `meta_description`, `position`, `updated_at`
FROM (`product_categories`)
WHERE `cat_id` != 1
ORDER BY `parent_id`, IF(position = 0, 1, 0) ASC , `position`, `name` 
0.0018  

SELECT *
FROM (`product_categories`)
WHERE `status_id` =  'A'
AND `parent_id` =  1
AND `cat_id` NOT IN (1, 261) 
ORDER BY `name` 
0.0007  

SELECT *
FROM (`site_settings`)
WHERE `option_key` =  'announcement' 
  HTTP HEADERS  (Show)
  SESSION DATA  (Show)
  CONFIG VARIABLES  (Show)