Researchers have recently investigated the efficacy of different strategies for recovery from service failure. This paper reports 2 studies that test the effects of a reactive (compensation) and a proactive recovery strategy (establishing prior rapport between service provider and customer). These strategies, plus aspects of the service problem, were manipulated using written scenarios. Consistent with predictions based on justice theory and the service recovery literature, customer evaluations were more favorable following high rapport, high compensation, minor service failures, and nonfinancial losses. Rapport and compensation interacted in a manner consistent with the fair process effect, although this interaction varied with failure severity and the dependent variable studied. The research underscores the importance of relationship building in the management of service failures.