Role of Customer Service in Business
Effective customer service is having a system in place to identify a customer's needs and then satisfying those needs. Customer service is no longer an option selling point. Customers expect to feel valued for the money they are spending. Customer service plays a critical role in the survival of any business.
Other People Are Reading
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Customer Retention
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Competitive prices can lure customers in, but the customer service experience is what the customer will remember most. In the book, Small Business for Dummies, Eric Tyson and Jim Schell explain that "Poor after-sales service communicates to your customers that after you have their money, you don't really care what happens to them." In the customer's mind, poor service also offsets the financial savings the customer may have gotten by choosing you over another company. Next time, they'll take their business elsewhere.
Product Improvement
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Customers are the single most important variable in improving your product offerings. The most successful businesses give customers what they want. Judy Zolkiewski and Barbara Lewis in a Manchester School of Management report explain that a way to solicit feedback from a customer is by first addressing his or her immediate service needs and then creating an environment that is less formal, which invites a more open discussion about what he or she likes and dislikes about your products. Customer feedback helps improve products.
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Referrals
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In Western society, customers expect great customer service. When they receive terrible service, they tell their friends, family and everyone in their social network about the bad experience. When they receive good service, because it's expected it, they rarely broadcast it. However, when the service goes the extra mile, they are more likely to recommend that business within their social circle. Their credibility is at stake if they recommend a company with lackluster service.
Educating & Sales Opportunities
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In the book Superior Customer Service, Dan W. Blacharski explains that customer service gives businesses an opportunity to bring in a lot of extra revenue. Satisfying customer needs makes them more receptive to hearing about other service and product offerings. Blacharski says every business should come up with a way to ask a variation of "Do you want fries with that." Every time a customer calls your service department, there's an opportunity for a cross-sell or an up-sell.
Opportunities
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The simplest way to develop a customer relationship is by keeping promises. Be receptive and listen to your customers because your products are created for their consumption. Even if there isn't any immediate profit to be made, be helpful. Business coach Tom Connelly says, "Inform customers right away that as a small business, you are interested in a long-term relationship with them." Then, show them that you're serious by going the extra mile with your customer satisfaction efforts.
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References
- Tom Connellan; The Role of Customer Service for the Small Business Entrepreneur
- An Assessment of Customer Service in Business-to-Business Relationships, a Literature Review and Methodological Issues; Judy Zolkiewski and Barbara Lewis
- Superior Customer Service: How to Keep Customers Racing Back to Your Business ... ; Dan W. Blacharski; 2006
- Small Business for Dummies; Eric Tyson, Jim Schell; 2008
Resources
- Photo Credit customer service image by Mat Hayward from Fotolia.com
