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Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

A Model of Profitable Service Recovery

A Model of Profitable Service Recovery
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Author(s): Kristen Bell DeTienne (Brigham Young University, USA) and Aaron Brough (Northwestern University, USA)
Copyright: 2012
Pages: 24
Source title: Service Science Research, Strategy and Innovation: Dynamic Knowledge Management Methods
Source Author(s)/Editor(s): N. Delener (Arcadia University, USA)
DOI: 10.4018/978-1-4666-0077-5.ch003


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This chapter presents a model of service recovery designed to improve profitability by differentiating the recovery efforts offered to different customer segments. To predict customer responsiveness to recovery efforts, the model advocates the use of both (1) company knowledge and databases to classify customers by past profitability and (2) the severity of the service failure they have experienced. The chapter makes recommendations related to the level of recovery quality and the type of recovery effort that should be extended to customers in each segment of the classification scheme. Using this strategic model of service recovery, executives can avoid wasting costly resources on unprofitable recovery efforts and instead direct those resources to the customers most likely to respond favorably to recovery efforts. By focusing recovery efforts on these customers, the probability of generating a profit through recovery efforts is increased.

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