Presented herein are techniques performed in a network comprising a plurality of network nodes each configured to apply one or more service functions to traffic that passes the respective network nodes in a service path. At a network node, an indication is received of a failure or degradation of one or more service functions or applications applied to traffic at the network node. Data descriptive of the failure or degradation is generated. A previous service hop network node at which a service function or application was applied to traffic in the service path is determined. The data descriptive of the failure or degradation is communicated to the previous service hop network node.