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Service Recovery at Peet's


A few postings ago (service recovery concept, @Guckenheimer) I wrote about the important customer loyalty-improving opportunity that comes at the time when a company screws up, then fixes it. Research has been done showing that effective recovery from failure can drive loyalty higher than never having failed.

Recently, Peet's Coffee & Tea Company accidentally merged my online account with someone else's and, presto, a $60 coffee order showed up on my credit card. I felt like I'd just taken a sip from an old cup of joe (maybe with a cigarette butt in it).

Once the situation was brought to their attention, Peet's worked quickly to brew a solution to the problem and promptly dispensed an order of my favorite beans. Their service recovery process was smoothe like a french roast, and I'm still feeling good about the company.

 
 
 
 
Comments:

No company or product is perfect. A well managed service recovery can often lead to better customer loyalty than before the incident. Enjoy the coffee, Peet's is definitely way better than Starbucks!

Posted by Marc Hamilton on May 11, 2005 at 08:47 PM MDT #

Michael, I would recommend Mr. Marc Gunther's latest literary work titled 'Faith and Fortune'. He states that most corporations with noted issues still employ 'post industrial' management principles. Having met Mr. Herb Kelleher, Southwest Airlines, I would agree with his assessment. Appropriate to your 'customer' satisfaction comment!

Posted by William R. Walling on May 21, 2005 at 11:19 AM MDT #

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