Service recovery at a financial institution

Abstract

Empirical research on quality improvement in service organisations has been growing in recent years but it still lags behind the developments observed in manufacturing. It has been generally recognised that more research is needed in the field, especially with regard to the application of quantitative methods that can help managers in the decision‐making process. Results of research carried out in a bank are presented, focusing the main aspects of the service recovery process after a complaint has occurred. A specific methodology is proposed to analyse the failures and corresponding complaints in service delivery, with the ultimate goal of articulating internal and external measures of performance. The methodology provides a better knowledge of the impact caused by operational factors (internal measures) on customer perceptions (external measures), so that management actions can then be taken accordingly.