Services Organization Recovery: Hair Salon

Paper Summary:

This paper discusses service organization recovery and outlines the five stages of service recovery, from the lowest (moribund) to the highest (infused). It presents the case of a hair salon and looks at how to bring the service recovery function to the highest level for that organization. The paper presents points of service recovery and a service recovery strategy plan. A table is included with the paper.

Table of Contents:
Background
Moments of Truth
Service Recovery Strategy Plan

From the Paper:

"At this point, compensation for issues becomes more complex. The person soliciting the feedback must be empowered to offer a range of possible compensations. They should probe the customer to find out what will make them happy. Another stylist may be the answer, but so may some form of financial compensation. If the customer agrees that they do intend to visit the salon again, a discount on their next visit will have value. If, however, they do not agree, or seem to be wavering, then another form of compensation, be it movie tickets or a restaurant voucher, would be more appropriate. Of course, the compensation offer should include an understanding of the nature of the problem and a statement explaining the course of action that will be taken to ensure the problem is never repeated."

Sample of Sources Used:

• Van Bennekom, Fred no date, ' Making the Case for Service Recovery - Customer Retention'. GreatBook.com Retrieved May 19, 2008 from http://www.greatbook.com/effective_complaint_handling.htm
• Tschol, John 2005, 'Service Recovery: Create Loyal Customers for Life' Small Business Toolbox Retrieved May 19, 2008 from http://www.nfib.com/object/IO_21944.html
• Sidorowicz, Rick 2001, 'Customer Obsession - Service Recovery' The CEO Refresher Retrieved May 19, 2008 from http://www.refresher.com/!obsession3.html
• Bliss, Jeannie 2007, '10 Steps to Recovery for Jet Black and Blue' Mpdailyfix.com Retrieved May 19, 2008 from http://www.mpdailyfix.com/2007/02/jet_black_and_blue_can_jet_blu.html
• no author 2006, 'Services Management' NC State University Retrieved May 19, 2008 from http://www4.ncsu.edu/~hp/MMW-Lecture5.pdf

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