Service Recovery
Part of Service recovery
Avoiding compensation that leaves the underlying issue untouched
Distinguish an owed remedy from a goodwill offer, then check both the customer response and the original service issue.
Before offering money, credit or a voucher, identify the failed customer outcome and what the proposed offer would address. A payment may be an owed remedy or a discretionary gesture. Delivery does not establish that a wrong record, delayed action or possible recurring failure has been corrected.
Identify the payment’s purpose
Ask whether the proposed payment is a remedy the customer may be entitled to, reimbursement for a consequence, or a goodwill gesture. These can overlap, so assess the transaction and circumstances rather than a label in a support tool. Tell the customer which part of the problem the offer addresses.
For questions about an applicable consumer-law remedy, check the relevant guidance or seek appropriate advice before deciding whether to add a discretionary gesture.
Owed Remedy vs Goodwill Gesture: Key Differences
- Owed RemedyA customer is legally entitled to this under Australian consumer law (e.g. refund, repair, replacement).
- Goodwill GestureA discretionary offer (e.g. voucher, credit) to acknowledge inconvenience, not required by law.
Track the original failure separately
Consider a hypothetical customer charged incorrectly who then receives a small credit for the time spent pursuing the complaint. The credit might address some inconvenience. The charge still needs to be checked and, if wrong, corrected. A possible error affecting other accounts calls for its own investigation.
| Track | Question before closing it |
|---|---|
| Customer remedy | Was the assessed payment or other remedy delivered, and what consequence did it address? |
| Original service issue | Was the failed task corrected or fairly resolved, and was any possible recurring cause assigned for review? |
Payment confirmation alone cannot answer the second question. A wider investigation need not postpone an individual remedy that can already be provided.
Check what the customer will still face
Before presenting an offer, ask what problem the customer will face after accepting it. Will they still need to chase a document, repeat a request or work around an incorrect account status? If so, name the action or decision that addresses that issue, its owner and the next update point.
Explain whether a payment is additional to a correction or intended to settle a defined part of the complaint. If the cause remains uncertain, say what is being checked.
Verify the outcomes
Confirm delivery of the payment through the relevant record. Separately check any promised correction or explanation. Ask the customer about the result when they can reasonably see it, and keep an unverified outcome marked as unknown.
Review later cases for the same failure type if a recurring cause was suspected. Fewer paid claims alone would not prove improvement; complaint activity or payment policy could have changed. The individual complaint can receive a fair, final response while a wider service investigation remains open.
Key Statistics on Complaint Handling in Australia
- Consumer Law RemediesUnder the ACL, consumers may be entitled to repair, replacement, refund or cancellation.
- Goodwill OffersUsed to build trust; not a substitute for fixing the core issue.
- Service Investigation RateOrganisations should investigate recurring failures even after individual complaints are resolved.
