SAM JANUARY 2025

GUEST SERVICE

THE SERVICE RECOVERY PARADOX

Strategies to recover negative customer experiences, turning potential naysayers into loyal customers.

BY KENDRA SCURFIELD, VP of Marketing, Brand, and Communications, Banff Sunshine Village, Alberta

I immediately received a reply from a guest service manag- er apologizing for the frustrating experience. As an act of good- will, the manager offered me three dinner vouchers and three complimentary all-ages island train ride tickets. Having felt heard, my anger and frustration melted away. The simple gesture shifted my overall satisfaction with the company. To this day, I consider myself a promoter of the attrac- tion, praising the guest experience. GOING FROM FOE TO FAN The shift in brand affinity I experienced is called the “service recovery paradox.” This is the idea that a guest who experi- ences an issue with a business (brand, product, or service) will become a promoter of the business if they feel that the business has solved their issue. In other words, when a guest complains to a business about its service going awry, the company can use it as an opportunity to thoughtfully rectify the situation and win the guest as a lifelong fan. Why is it important for ski areas to prioritize customer recovery? As ski resorts, we grow participation in our sport by keeping our current guests engaged and by welcoming newer participants who are more likely to have a less than perfect impression. From a number’s perspective, the cost of losing a customer far exceeds the cost of recovering the experience. We all know the most effective form of marketing is word of mouth, and through the act of a thoughtful and timely recov- ery of a dissatisfied customer we can transform dissatisfied cus- tomers into ardent supporters. » continued

When was the last time you had a truly remarkable experi- ence as either a guest or client? Take a moment and think about it. The last time I raved about an experience came in the after- math of a frustrating interaction with the same organization. Sounds odd, doesn’t it? I’ll explain. My family and I were on a warm-weather holiday traveling with multiple generations—from toddlers to grandparents—and we wanted to make memories together. In that vein, we booked a safari tour assuming the activity was accommodating for both our youngest family member (my son, age 2) and our oldest (my grandma, age 92). Prior to booking, we may have failed to read the small print because, upon check-in, we were informed that due to liability concerns, neither my son nor my grandma was eligible to participate—thus, by default, neither was I. At that moment, I was frustrated. The young staff member working check-in apologized politely and, per their training instructions, stated that we had missed the cancellation win- dow and the company had a no refund or exchange policy. Having grown up in the hospitality industry, I knew the team member was performing their job as they had been instructed. Instead of raising my voice or pushing back on what I believed to be an archaic operating policy, I expressed my understanding before asking if I could have the manag- er’s contact information. Equipped with the name and email, I promptly strapped my son into his stroller and fired off an email explaining my frustrations while enviously watching the rest of my family board the open-air safari vehicle.

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