Customer Service Research Paper

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Good customer service is vital to ensure an organisation is successful. There are many benefits but there are also costs to an organisation to committing to a high-quality service.
Costs are not just related to financial outlay; poor customer service can cost reputation, customer loyalty and ultimately market share. The benefits of good customer service are easy to see in customer retention, repeat business and customer feedback.
Other benefits of good customer service include not only retention of customers but new customers due to a good reputation and word-of-mouth of the company likely due to the customers experience; this in itself can cause an increase in revenue. Providing a good customer service can also give your business a competitive edge against competitors, which again can have an increase in customer retention, loyalty and sales.
It is not always the organisations with the highest budgets that have the ability to maintain customer satisfaction to the highest levels. In a 2015 customer satisfaction survey carried out by Which?, it was shown that in a survey of UK energy suppliers the largest, most-profitable organisations were not among the ones scoring the highest in the survey. In fact the handmade cosmetics firm …show more content…

One cost of poor customer service is customer loyalty. If customers are not happy with service, there is a lot of research to show that they will go elsewhere. Information shows that around 13% of unsatisfied customers tell more than 20 people of their experience and also that people are twice as likely to talk about bad customer service experiences, than they are to talk about good experiences. This then has a negative effect on the business finances and sales revenue as customers will look elsewhere that provides a higher quality customer service. Here is a chart I found by Marketing Sherpa displaying their findings between customer sales and

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