Balancing the Needs of Customers and Employees Following Service Failure
A Dyadic Psychosocial Approach
Service industries are a large component of Australia's economy and service quality is critical to a company's success. Service encounters (the interactions between customers and front-line staff) have great potential to create customer loyalty but have equal potential for customer dissatisfaction.
When service encounters fail, conflicts can arise, leaving both the customer and the employee feeling angry and stressed. Customers may switch firms and complain widely, whilst workers experience a range of stress-related problems. The social and economic costs can be enormous.
This three-year research project investigates the dynamics of problematic service encounters. It uses an inter-disciplinary, multi-method approach to identify service encounter strategies and processes that meet participants' psychosocial needs and thereby enhance outcomes for all concerned.
Findings will strengthen Australia's social and economic fabric by providing strategies to increase customer satisfaction and reduce worker stress. Service firms will benefit from a more loyal customer-base, and reduced employee absenteeism, turnover, and compensation claims.