Airing the Dirty Laundry: The Missteps of Professional Service Firms After Client Service Failures

This study considers the complexities associated with service failures and recovery in professional service firms. Interviews with sixty clients of professional accounting firms serve as the source of the data. The study results confirm that service failures occur in the professional services context, and provide insights into the most common types of service failures and service recovery efforts experienced by these clients. Of particular interest is the finding that clients often consider alternative service providers when service failures take place, but rarely switch. Possible explanations for this behavior and the implications for client retention are discussed.