Aim: The study aims to explore the process of service recovery, its transformation into a marketing tool and identifying the outcomes of the tool to the organizations.

Methodology: The research employed a qualitative methodology with an inductive approach. Data collection was carried out via semi-structured interviews with participants from four organizations in Stockholm City. The analysis involved the use of questions based on the main concepts derived from the literature and manual coding scheme to identify new themes.

Findings & Conclusion: Service recovery is a powerful marketing tool that can benefit organizations in various ways. By implementing effective strategies such as employee training, transparency, multiple service recovery options, and process improvement, organizations can turn service failures into opportunities. The outcomes of using service recovery as a marketing tool include customer retention and repeat purchases, positive word-of-mouth marketing, confidence and trust, building customer relationships, competitive advantage, and business growth and sustainability. The findings of the study highlight the critical importance of service recovery in marketing for customer retention and acquisition.

Limitations and recommendations for further research: While this study provides valuable insights into how organizations can use service recovery as a marketing tool, further research is needed to understand its impact from a customer’s perspective and to broaden the scope of industries and geographic locations studied. Further research is also suggested to compare the performance of organizations that prioritize service recovery in marketing with those that don’t and to conduct a comparative analysis with other marketing tools. Also, exploring additional theories and concepts could provide a more comprehensive understanding of the topic.