Myra’s answer to What exactly is customer recovery?
Customer recovery is the act of responding to complaints and problems in such a way that completely regains customer goodwill after any service failure. Customer recovery includes what employees say and offer (coupons, refunds, etc.) and the speed of response. A well designed and executed recovery literally “recovers” customers from thinking about going to the competition.
Myra’s book, Beyond WOW has a complete blueprint for developing a customer recovery plan.
You might also enjoy Myra’s interview with Paul Vann where she discusses Customer Recovery at length.