Service recovery paradox

A customer whose problem is fixed very well can end up more satisfied than one who never had a problem.

Emotion and memory Mainly on Post-purchase pages
Where it applies

Two of the eight page areas.

HomepageNot typical CategoryNot typical SearchNot typical ProductNot typical CartNot typical CheckoutNot typical Post-purchaseMainly here

It also applies sitewide, on every page. See everything at work on Post-purchase pages

How to use it

Three ways to use it, and two to avoid.

  • Invest in fast resolution of late, damaged or wrong orders.
  • Make the resolution generous as well as fast.
  • Set the goal as getting the customer back to baseline, which is the realistic aim.
  • Avoid: treating failure as an opportunity: the paradox appears only for a minor, first-time failure and disappears after a second.
  • Avoid: offering a repair, replacement or refund for faulty goods as a recovery gesture, when it is a legal floor.
What the research found

The paradox shows up in satisfaction scores only, mainly after minor first failures.

The paradox appeared for satisfaction scores only, not for repurchase, word of mouth or company image.

A meta-analysis by de Matos and colleagues found the paradox for satisfaction scores only, not for repurchase intentions, word of mouth or company image. It was most likely after a minor first failure, and in a 20-month study of real complaining customers it appeared after one failure but not after a second.

Key research

Four sources, each checked.

Last reviewed

de Matos, Henrique & Rossi (2007)Meta-analysis Service Recovery Paradox: A Meta-Analysis J. Service Research Read the source Maxham & Netemeyer (2002) A Longitudinal Study of Complaining Customers' Evaluations of Multiple Service Failures and Recovery Efforts J. Marketing Read the source Magnini, Ford, Markowski & Honeycutt (2007) The service recovery paradox: justifiable theory or smoldering myth? J. Services Marketing Read the source Smith & Bolton (1998) An Experimental Investigation of Customer Reactions to Service Failure and Recovery Encounters: Paradox or Peril? J. Service Research Read the source
Before you use it · UK law

Repair, replacement or refund for faulty goods is a legal floor, not a recovery gesture.

This is simply a pointer to check, not legal advice. Seek legal advice before you put this principle into action.