The Customer Service Recovery Paradox

Here’s something that might surprise you. Some of your most loyal customers may be the ones who have had problems and complaints in the past. For years, I’ve been preaching that when a customer comes to you with a problem or complaint, the goal is not only to resolve the issue, but also to restore their confidence.  

I was recently reminded of the concept known as the Service Recovery Paradox. Back in 1992, Michael McCollough and Sundar Bharadwaj coined the phrase to describe, according to Wikipedia, “a situation when the customer thinks more highly of a company after the company has corrected a problem with their service, compared to how they would regard the company if non-faulty service had been provided. The main reason behind this thinking is that the successful recovery of a faulty service increases the assurance and confidence from the customer.” 

BOOM! That’s the point. Fix whatever needs to be fixed in such a way that makes things right and restores the customer’s confidence in you so well that they want to continue doing business with you. Furthermore, if done the right way, you not only get the customer to come back, but that confidence can also create loyalty. When the customer says, “I know I can depend on them even when there is a problem,” why would they consider doing business with anyone else? 

The Customer Service Recovery Paradox

When a customer brings a problem or complaint to your attention, they are hoping for you to take care of it. It’s how you go about doing so that will create the Customer Service Recovery Paradox. Three things must happen: 

1. The resolution makes the customer happy. It may be as simple as answering a question. Or it may require a repair, or a replacement of something that can’t be fixed. Regardless, the customer must agree that the resolution is satisfactory. However, that only brings you back to what the customer expected in the first place. Dissatisfaction can linger from the effort and friction they experienced in getting the issue resolved. 

2. It must happen fast. Speed is your friend. The faster to resolution, the better.  

3. Go beyond the fix. The problem is resolved, and you did it quickly and efficiently. That helps restore the customer’s confidence in you, but let’s take it just a bit further with what happens next. While some instances may require a refund or discount, that’s not always necessary. A simple note or email that thanks the customer for letting you help them and reminds them you will always have their back may be all it takes.  

When customers know they can depend on you, especially when things go wrong, why would they risk doing business with anyone else? That’s not just customer retention. That’s a foundation for customer loyalty.

Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops at www.Hyken.com. Connect with Shep on LinkedIn.