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According to the peak-end rule, whereby the service providers recover well from service incident s, customers may actually retain a more positive perception of service quality than they had before the incident. This behaviour provides justification for investment in superior service support systems, processes and staff. While the strategic intent may be to reduce the occurrence of service incidents, the tactical goal would be to recover well from service incidents that are not avoided or foreseen.
Under certain conditions, the use of automation allows for quicker service recovery through fast resolution of service incidents. User s often expect nothing more than quick resolution of their problems without tedious policies and procedure s. This provides a business case for simplifying, standardizing and automating certain service activities or interactions. However, when poorly designed or implemented, automated or self-service options can be especially aggravating for a user who may have suffered from a service incident. The challenge is to pick the right type of interface for a particular interaction.
Simple and routine incidents should be recovered using automation when all other factors are equal. Software-agents with diagnostic capabilities can interact with users to resolve basic technical problems. Online knowledge base s with search and navigation capabilities are useful examples of such recovery.
The approach is necessary knowledge from service management processes into automated solutions such as online technical support, self-service terminals, IVR units and software application s. User s are then presented with the self-service option as the first line of support to solve the most routine of problems. It also helps to raise the level of technical knowledge of users through well-designed documentation and self-help kits. Over time, this reduces the number of incidents that have to be handled by human resources (see example in Figure 8.4).
Example of leveraging intangible asset s
The product installation and maintenance system of a major internet and telecom solutions provider generated Ј0.75 billion in savings (1996–98). The company made an extensive amount of technical knowledge about its solutions freely available online to its customers. Large amounts of workload were diverted away from its technical support staff and engineers, who could focus on tougher problems needing escalation. Most of the customers were themselves technical staff willing to attempt to fix problems on their own to the extent possible. This online knowledge base could be concurrently used by a large number of customers without degradation of quality or inordinate waiting times.
Baruch Lev37
The idea of making it convenient, quick and courteous for user s to report service incident s and receive compensation is an important principle that should shape policies and guideline s. Good service culture requires it to be easy and fair for customers to file a complaint and have problems resolved, without undue burden on their time, effort, or emotion, all of which are forms of indirect cost s and psychological costs of being a customer. 38 The need for that becomes particularly important where the customer or users will not receive any financial compensation. At this level of maturity, the service provider has institutionalized the true meaning of providing warranty to the customer. Preventing simple failures from turning into negative feelings will help maintain higher levels of customer satisfaction. Such service providers also demonstrate to their customers certain ethics that contribute to long-term success in the relationship.
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