EFFECTIVENESS OF SERVICE RECOVERY ON CUSTOMER SATISFACTION

Abstract

Service recovery is now no more an alternative for the businesses in today’s competitive world. We have seen its importance rising as an essential component for customer retention strategies and building long term relationship with their customers. Organization should incorporate necessary or suitable training to front facing personnel in terms of attitude, skills and behaviour towards handling critical customer situations at service encounter stage. Certain determinants of service recovery has been used to categorize the satisfaction level like Speed of Recovery, Management system, CRM automation and marketing. Service recovery is an important tool for efficient customer relationship management. We will be studying about the ways to mitigate the Service Gaps, how Service recovery happens and thus, in subsequent portions of this research paper we will see whether service recovery has an impact on customer satisfaction in the online retail space particularly Big Basket as it a leading online retail for fast moving consumer goods and perishable commodities. The CRM practices are adopted to generate better understanding of the customer for product development, segmentation, appropriate targeting, campaign management and maintenance of long term profitable and mutually beneficial relationships with customers. CRM is the strategy for building, managing and strengthening loyal and long-lasting customer relationships. CRM is a customer centric approach based on customer insight. Its ultimate objective is towards ‘Personalized’ handling of customers as distinct entities through the identification and understanding of their differentiated needs, preferences and behaviours. CRM-based customer service modules can provide traditional customer service capabilities that are further enhanced by providing a complete picture of all customer interactions. The creation and management of individualized or service-all marketing initiatives and pricing strategies are also streamlined and organized. Most CRM systems also include social media listening tools that allow you to track and respond to social media sentiment in real-time. A leading name in online retail is Big Basket. It is India’s largest online food and grocery store and is known for its great quality products and on-time delivery. Its presence is spread across the country and has a wide array of products. Customers are spoilt for choice as all their grocery needs are met at one place. However, service failure is something that is unavoidable and even Big Basket has to undertake service recovery to maintain customer loyalty and satisfaction for its service failures. The study conducted to see how successfully and efficiently service recovery methods help in having better satisfaction level. Also, the study addresses the impact of service failure and service recovery on customer loyalty. A case study on Big Basket explains how its customers responded to service recovery strategies.