We often stress to our customers the importance of service recovery-the process of resolving a customer’s issue after a service failure, with the goal of restoring trust and satisfaction through timely solutions and corrective actions-and embedding it into their organizations. In a recent conversation, I even said, “Service recovery and closed loop is the key to maximizing ROI,” a phrase I firmly believe in and stand by every day. Closed loop is a critical component of an organization’s relentless listening efforts and typically consists of two focus areas: the inner loop, which focuses on addressing customer issues in the moment, and the outer loop, which aggregates feedback to drive broader structural improvements.
“ Service recovery and closed loop is the key to maximizing ROI.”
Surprisingly, many companies and industries fail to follow up with their customers in real time or leverage aggregated feedback to drive meaningful improvements. Even when a service recovery program exists, it can sometimes feel half-hearted, leaving customers more frustrated than if no effort had been made at all. I was reminded of this recently through two personal experiences with well-known companies: Ford and Chase. The lack of follow-up, transparency, and overall poor customer service in both situations was shocking.
My experience with Ford, in particular, has been so frustrating that I’ve decided not to renew my lease when it’s up in March 2025, despite my love for the Bronco. Their service recovery team seems to be in place, but I’ve been dealing with a “Customer Experience” specialist who is gathering information I’ve already provided multiple times through a detailed paper trail to the Head of Service. There seems to be no clear escalation path, which is hard to believe and reflects a half-hearted approach. Despite escalating my issue with both the dealership and corporate, and sharing my experience publicly, I’m nearly a year into this issue with no resolution.
Ford has lost a loyal customer—and not just me. My dad, who’s in the market for a pickup truck, has decided against any Ford options. My brother and sister-in-law, who need a bigger SUV for their growing family, have vowed never to do business with Ford either. Because of my unresolved issue, Ford has lost at least three potential customers.
The purpose of this article is not to dwell on my experience with Ford, but rather to highlight how fragile a company’s relationship with its customers can be in today’s world. In almost every scenario, customers have choices about where they do business. And in a world where products and features are often very comparable, the true differentiator remains the service—and more importantly, the service recovery processes—that companies have in place to retain their customers and ensure a great experience.
Implementing a robust closed-loop program, whether in Contact Centers, Digital Platforms, or any area where you actively or passively listen to customers, must include a strong service recovery component. If it doesn’t, you should ask yourself: why are you listening in the first place? Is it just to chase an NPS score? To keep up with competitors? Or to give the appearance of listening without true follow-through?
If these questions resonate with you, I challenge you to rethink your approach to service recovery. Consider what you can learn from both your customers and employees to drive improvement across your products and organization. Service recovery processes can uncover product issues, innovative ideas for future enhancements, process breakdowns, and even highlight areas where employees are excelling.
No company is immune to product or service issues, and most people understand that mistakes happen. However, every company can invest in a robust service recovery program so that when issues arise, they are prepared. This not only protects the delicate relationships they’ve built with their customers but also helps drive future growth. Salesforce’s 6th Edition – State of Service Report reveals a significant gap in service perceptions: while 61% of service professionals believe their organization addresses issues proactively, only 33% of customers agree. This stark contrast underscores a major disconnect between companies’ perceptions of their service recovery efforts and the actual customer experience.
The bottom line is this: service recovery isn’t just a “nice-to-have”—it’s a must-have for any organization committed to customer retention, brand loyalty, and sustainable growth. In today’s competitive landscape, where customers can switch brands with a click, a single unresolved issue can lead to not just one lost customer, but potentially dozens, as negative experiences ripple through personal networks and online reviews. Companies that prioritize service recovery, that genuinely listen and act on customer feedback, will not only retain their customers but will turn these moments into opportunities to build deeper trust, drive future recommendations, and strengthen their brand reputation.
Ready to elevate your team’s service recovery and drive meaningful change? Cortico-X has expertise in designing and implementing robust service recovery strategies and closed-loop systems, which will help you take your customer experience to the next level.
Let’s connect and discuss how we can help you delight your customers.
Dani Dudek
is a Principal at Cortico-X with extensive industry experience as a Client Experience leader. Dani has a passion for solving complex business problems and improving people’s lives through exceptional experiences.
