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
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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
Without good customer service and keeping your promises, your company would have loyal customers. According to 5 Focusing Steps, “If you’re not yet sold on the idea, consider that a 2 percent increase in customer retention has the same effect as decreasing costs by 10 percent. Not only that, but it costs over six times more to get a new customer than it does to keep one.” Customer satisfaction should be a golden rule of all companies.
Zeithaml, Valarie A, Berry, Leonard L, & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31. Retrieved April 1, 2011, from ABI/INFORM Global. (Document ID: 9401886).
High levels of customer satisfaction will not guarantee future sales, but are more likely to result in repeat future sales than indifferent or poor customer service. Moreover, satisfied customers are more likely to try out other products/services in the firm’s range, or recommend it to friends and family. Build on customer loyalty Customer loyalty is valued highly by most businesses and can be
1.1 Explain the value of customer service as a competitive tool Customer service is valued as a competitive tool by many organisations. It gives you the ability to gain customer loyalty while meeting the customer’s expectations. Staff will have the skills and knowledge that will provide a competitive edge. Most organisations are known for the quality of their customer service. This means that they are known for good customer service or poor customer service.
Close to the Customer: Customer satisfaction is very important throughout all the roles that the business plays. Many companies forget about their customers, whereas successful companies have an obsession with their customers. Excellent product quality and reliability will make a satisfied customer. Great service will keep the customer coming back.
Providing great customer service and having the ability to retain customers require consistency in delivering the anticipated services. Customer service encompasses having the ability to provide a service or product to customers by means in which it was promised. However, there are times when unforeseen circumstances may occur, resulting in customer service breakdowns. Understanding the effectiveness of customer service relations provides the assurance needed to handle complicated service related issues. A well qualified customer service representative has the acquired skill to effectively defuse a potentially damaging service related matter. Service recovery influences customer retention and improves customer satisfaction.
...ough quality or enough service, satisfaction will result. However, we have evidence to support that quality and service alone can not produce recurrent satisfaction. Satisfaction is a distinct and separate issue.
It's very well known that a companies success is not only dependant on the possession of a good product or service, but the key aspect to a successful business is excellent customer service. As the market grows, now more then ever companies are emerging, they are offering very similar types of products and services. Successful customer service can be a way a business becomes original and unique, it can be the key to attracting and maintaining loyal customers. Good customer service can start-up a business while bad customer service can harm a company. An average customer that experiences an issue will complaint to 9-10 people about the problem. A customer that received support to their problem and a potential solution will tell at least five
This essay will explain what is meant by excellent customer service, outline an excellent customer service structure and give ways in which it can be maintained. It will also state the impotence of customer service to a business or entity.
Customer service by definition is the ability of knowledgeable, capable, and enthusiastic employees to deliver products and services to their internal and external customers in a manner that satisfies identified and unidentified needs and ultimately results in positive word-of-mouth publicity and return business (Lucas, 2012, pg.7). In other words, it’s making the customer pleased so that they keep doing business with you all while making sure that the employees get along and work together well. In every business there is a form of customer service. Unfortunately, it is not always excellent or even decent. Some businesses just either don’t care or possibly just don’t have the training to deal with some of the obstacles that come with dealing with customers on a daily basis. I’ve been in the restaurant business for over 13 years and I can tell you that there are skills that some are born with and others need training on, yet either way they should be used whenever interacting with customers.
Customer service is constantly evolving. A few decades ago, businesses considered customer service an unnecessary expense. Now, companies view it as a competitive advantage in the marketplace. Research reveals that “80% of CEOs believe they deliver a superior customer experience, but only 8% of their customers agree”.
“Excellent customer service is defined as service that treats customers with a friendly attitude and tries to resolve their problem or question as efficiently as possible.” (Reference). Employees also need to realize that providing excellent customer service will provide positive word of mouth recommendations for the business that they work for in the community. A business wants their customers to say that I am coming back to this location because of the customer service that I received from this employee. “You’ll never have a product or price advantage again. They can be easily duplicated, but a strong customer service culture can’t be copied. -Jerry Fritz”.
(1) efforts to improve the quality of their services, and (2) efforts to market themselves more effectively. Both service quality and services marketing have received considerable attention from researchers over the years and the application of these concepts in the service settings is therefore not surprising (Parasuraman et al., 1985; Rust and Oliver 1994; Zeithaml et al., 1990). One evidence of the importance of service quality and service
I am a customer service representative at a health company funded by the state. I hear a lot and a lot is expected from me. My job description consists of talking to members over the phone. I explain about their benefits, services that we offer, obtain personal information, I verify authorization, look for provider and etc. With being the first point of contact I try hard to deliver the best customer service that I possibly can; so that I can show that I really cares about the members. The three core values that help me work with my customers are respect, honesty, determination, these three values has shaped me into the young lady that I am today, but most importantly they help me provide great customer services.
Customer Service is the act of dealing with the customers needs by giving and delivering professional, helpful, high quality service and help some time recently, amid, and after the customer's requirements are met.