Organizations are only as good as the humans that develop and operate them – and that introduces the possibility for mistakes to be made. Most leaders would agree that mistakes are not something to welcome, but there can be a silver lining to this cloud.
Executing an initiative called the “service recovery paradox” can make the difference between losing a customer or – believe it or not – increasing their loyalty. A business mistake can present the opportunity to interact with a customer in a positive way by going the extra mile to make things right.
The service recovery paradox refers to an occurrence in which a customer who has experienced an issue with a product or service and subsequently has that issue resolved in a successful and personal way, becomes an even more loyal customer. The company, in effect, comes out ahead since the customer’s satisfaction quotient is increased beyond what it would have been if the issue hadn’t happened. There are a few boxes to check when using this paradox to your advantage. Let’s face it – those mistakes cause ripple effects, and it’s up to you to turn the tide.
Restoring lost value is the first factor to consider – your customer believes they have been unfairly treated and their perception of lost value is on high alert. This is where your first step of the service recovery paradox needs to happen. Offering to repair the situation – and then some – will go a long way toward restoring trust. If you can provide a product or service that has perceived higher value to your customer, you’ve made a great start.
Typically, in situations where someone has been impacted by a mistake of some kind, people respond better when ownership of the problem – and its cause – is offered. It’s important, however, to remember that there is a difference between providing an excuse and accepting responsibility. Your messaging needs to clearly state that your company takes full responsibility for what has happened, ensuring that the issue is resolved to their satisfaction, and regaining their trust in your brand. It also helps to add that you are using this as a learning opportunity to prevent it from happening again. These are big steps.
An explanation of what caused the problem in the first place can often create transparency that restores confidence in the brand/customer relationship. And the critical next step of describing what measures you have taken/are taking to fix the problem is key to creating a successful service recovery paradox. Lastly, a sincere expression of regret and an authentic apology will ring true since it has been backed up with solid action.
It’s clear that across all industries, opportunities to generate a service recovery paradox will arise at times. That’s where entrusting your CX activities to an established customer service outsourcing company and industry leader like Anexa can pay off. Anexa can staff your critical customer service areas with dedicated, highly trained CX professionals. With an eye on aligning your customer with your brand and first contact resolution, there is clearly a reason that Anexa was named as a finalist in the 2021 Customer Centricity World Series.
Our customer-centric strategy is simple. We integrate technology, seamless processes, and human talent to achieve customized (and customerized!) interactions – depending on the type of customer, the product or service and your specific business objectives.
Contact us today to find out how Anexa can partner with you.