Ultimately, retaining customers by providing excellent service and avoiding or fixing service
failures is essential to organizational success. When the lost revenue of unhappy customers who don’t return is added to the lost revenue of customers who don’t come because of the negative word of mouth from unhappy customers, service failures have created an expensive problem.
For example, in the restaurant, there will be a lot of money to throw away by ignoring a complaint about one bad meal. These numbers get even bigger when the number of people that a positive word of mouth guest could bring to your hospitality organization is added in. Over the estimated life of a typical customer, this can add up to many thousands of dollars in potential revenues.