The actions a company undertakes to address and rectify service failures constitute a critical process in customer relationship management. This involves strategies and procedures implemented to regain customer satisfaction and loyalty after an unsatisfactory service experience. An example includes a restaurant offering a complimentary meal to a patron who received poor service.
Effectively addressing service failures is vital for maintaining a positive brand image and retaining customers. Proactive measures in this area can transform a negative interaction into an opportunity for enhanced customer relationships. Historically, emphasis on this area has grown alongside increasing awareness of the link between customer satisfaction and long-term profitability.