What is a service recovery plan?

• A. A formal process to address service failures, offering remedies and follow-up to restore client satisfaction.
• B. A plan to increase prices after complaints.
• C. A policy for hiring replacements.
• D. A program to reduce service quality.

Answer: (A)

A service recovery plan is a formal process to address service failures, offering remedies and follow-up to restore client satisfaction. It guides how a business detects when things go wrong, communicates with the customer, and provides concrete remedies such as refunds, replacements, or discounts, all with timely follow-up to confirm the customer is satisfied. It also assigns responsibilities, establishes timelines, and documents actions so the issue is resolved smoothly and steps are taken to prevent recurrence. This approach focuses on repairing the relationship and maintaining trust, rather than trying to raise prices, hiring replacements as a policy, or lowering service quality. For example, if a service misses the mark, the plan would specify an immediate apology, a suitable remedy, and a check-in afterward to ensure the customer feels the issue was properly resolved.