Kristen DeTienne
Kristen DeTienne
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Bad service is something everyone can relate to -- we've all had an experience with an obnoxious employee or had to call to correct an error on a bill. What we often can't relate to is the great way a company recovers from a service failure and wins our future business.
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Tangible is what the company does to appease customers, and psychological is how they do it. For example, we had a student who paid for flowers to be delivered on Mother's Day. By accident, the flowers weren't delivered. The florist profusely apologized for the oversight -- that was the psychological. Then, he recovered by delivering a different bouquet of flowers to the mother's house every day for a week after that -- that was the tangible.
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Often companies are not aware of additional inconveniences caused by their service failures. They know the new TV you bought from them broke but don't know you had all of your friends over to watch the game when the picture went out.
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If companies can figure out what their failures are going to be and how they can make customers feel good about them, they are going to keep those customers in the long run.