The Customer Interaction Process: Managing Customer, the Service Encounter and Service Recovery

Service interactions are next to customer relationships one of the primary value processes of a service provider. Due to the fact that in service situations value is created via the throughput of the customer through the service production process, and this throughput is realized in service interactions, these interactions are one of the major value drivers of a service firms value. As one of a service providers primary value processes, the interaction process aims at managing the service interactions by integrating the customer, providing the service in the service encounter and a recovery service in case of service failures. These three main value-enhancing sub-processes contribute differently to a service firms value by influencing both revenues and cost. Revenues are created first by the customers throughput through the service process, and secondly by preventing customer defections as a consequence of service failures.