What is meant by 'service recovery'?

Service recovery refers to the actions taken by a company to rectify a service failure and restore customer satisfaction. This process involves identifying the issue that caused dissatisfaction, addressing it promptly, and ensuring that the customer feels valued and heard. Effective service recovery can turn a negative experience into a positive one, leading to increased customer loyalty and repeat business.

The focus of service recovery is to engage with the aggrieved customer, provide solutions or compensation when appropriate, and implement improvements to prevent similar issues in the future. It highlights the importance of customer service in managing relationships and enhancing overall satisfaction even after a mistake or service failure has occurred.

In contrast, options pertaining to fee elimination, employee training, or customer loyalty program assessments do not align with the core concept of directly addressing and resolving service issues, which is central to effective service recovery strategies.