essay about good customer service

Why Customer Service is Important: 16 Data-Backed Facts to Know

Published: June 13, 2023

When you have a small budget for your business, there are probably several high-priority teams to consider when allocating funds.

The importance of customer service shouldn’t be underestimated, so your support team should be one of those teams. Investing in your customer service team now pays dividends in many ways later. Here’s why.

Table of Contents

• Importance of Customer Service

Financial Benefits of Excellent Customer Service

How customer service supports marketing efforts, customer service’s impact on brand image, the power of well-equipped employees, what businesses need to improve customer service, why is customer service important.

Customer service is important because it's the direct connection between your customers and your business. It retains customers and extracts more value from them. By providing top-notch customer service, businesses can recoup customer acquisition costs. This helps to cultivate a loyal following that refers new customers, serves as case studies, and provides testimonials and reviews.

Investing in customer service helps activate your flywheel because loyal customers will help you acquire new customers free of charge by convincing prospects to interact with your brand. Their positive testimonials will be more effective than your current marketing efforts—and cheaper, too.

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A company with excellent customer service has a team that does more than answer questions and solve customer issues. Providing excellent customer service can save—and make—a lot of money for a business. In fact, improving the customer experience can increase sales revenue by 2-7% and profitability by 1-2%.

Here are some additional financial benefits of excellent customer service.

1. Customer retention is cheaper than customer acquisition.

According to our research team , the customer acquisition cost (CAC) —how much it costs to acquire a new customer—is higher for a company that doesn't invest a small percentage of its budget in customer service. Ultimately, investing in customer service can decrease your churn rate . Decreasing churn rate reduces the amount you must spend on acquiring new customers and decreases the overall CAC.

That’s because it’s more profitable to pour efforts into retaining existing customers in the long run. A massive amount of sales will come from existing customers , and only 20% of your current customers will be the source of 80% of your company’s profits .

Pro Tip: Crafting a good customer experience improves customer retention. An excellent onboarding experience and customized offers can go a long way in keeping customers satisfied and around overall. McKinsey says companies with experience-led growth strategies see 5-10% higher wallet share and 20-30% higher satisfaction and engagement.

2. Customers will pay more to companies with better customer service.

It’s hard to put a price on great service, and an extraordinary number of customers are willing to pay a premium to get it. Customers place a high value on how a customer service team treats them, and companies will directly profit from positive customer service encounters. Over 80% of customers reported that receiving value during a service experience makes them more likely to repurchase even when given a chance to switch to a competitor.

In an era where companies are learning to prioritize customer service, any company that doesn't do so will crash and burn. Moreover, one positive experience could make them stick to a brand, whereas one negative interaction could send them running to a competitor.

Pro Tip : To offer the good customer service customers stick around for, continuously solve for the customer. This looks like being quick to bring resolutions, you’re empathetic during conversations, offering omnichannel support options, and actually using customer feedback to improve your practices so you always have your customer in mind.

3. Customer service grows customer lifetime value.

Customer lifetime value (CLV) is a pretty important metric when you're running a business. CLV represents the total revenue you can expect from a single customer account. Growing this value means your customers shop more frequently or spend more money at your business.

But businesses have room for improvement in utilizing this vital metric— only 42% of companies can measure customer lifetime value.

Investing in your customer service team is an excellent way to improve customer lifetime value. If customers have a great experience with your customer service and support teams, they'll be more likely to spend money with your company again. Or, at the very least, they'll share their positive experience with others, which builds rapport with your customer base.

Customer service makes new customers more trustworthy of your business and allows you to upsell and cross-sell additional products with less friction. New users will trust that your sales team is recommending products that truly fit their needs, creating a smoother buying experience for both the customer and your employees.

Pro Tip: To increase CLV, focus on building long-lasting, beneficial relationships with your customers. Offering an excellent product/service and excellent support when customers need help makes them more likely to purchase and repurchase what you offer. Every single positive experience increases the likelihood of their return and extends the length of your relationship, creating a higher CLV.

4. Customer service can lead to more revenue.

Business leaders understand that budgeting and other business decisions are about the bottom line. But customer service can also bring in revenue and impact the bottom line.

A report showed that customer experience leaders across all industries have 2X greater revenue growth than their peers , and this has been consistent since 2016.

Additionally, American companies reportedly lose about $136.8 billion yearly because of avoidable customer losses. Therefore, a positive or negative customer experience directly impacts your company’s revenue and growth.

Customer service team members are on the frontlines, communicating daily with current and potential customers. As a result of this proximity, customer service can offer valuable insight that can help improve marketing outcomes.

1. Customer service employees can offer important insights about customer experiences.

It doesn't matter how you perceive your brand. What matters is how your customer perceives it.

For instance, if you work for an athletic wear company, you might associate your brand with fitness, health and wellness, and people who play sports.

However, your customers may purchase from you because they associate your brand with leisure, comfort, and attractiveness. So, you should align your marketing with those values as well.

Your customer service team can answer many of these probing questions for you. Rather than spending time and money surveying customers constantly, you can have your customer service employees simply ask these questions while interacting with customers. Their response can give you many insights into improving your products, marketing, goals, and employee training .

The more you improve the customer experience, the harder your employees will work. Research shows that companies that invest in customer experience also see employee engagement rates increase by an average of 20%.

2. Proactive customer service creates marketing opportunities.

Consider adopting proactive customer service if you're looking for a cost-effective way to invest in your business. Rather than waiting for customers to report issues, this approach reaches out to them before they know the issues exist. This tells customers you're constantly working to remove roadblocks from their user experience.

But proactive customer service isn't only used for customer delight . It's also an effective marketing tool for introducing and promoting new products and services. For example, if you create a new feature that solves a common problem with your product, your customer service team can refer it to your customers.

They can use your CRM or ticketing system to look up customers who have had this problem in the past, reach out to them via the service ticket, and introduce the new feature and its benefits. This can be more effective than a sales pitch because customers feel the service rep understands their issue after troubleshooting it.

Current data shows that proactive customer service is more crucial than ever. Customers of every industry are accustomed to the fast-paced digital revolution and expect customer service teams to be speedy in resolving their issues.

A main customer frustration is long wait times when seeking support, and their rage only increases the longer they wait .

3. Personalized customer service can improve your online conversion rate.

Your online conversion rate can improve by 8% when you include personalized consumer experiences. A higher conversion rate should lead to more sales and more revenue. Customer service keeps your flywheel moving, like marketing and sales.

But service that isn’t personalized and makes customers feel like no more than a ticket number in the system harms customer retention. 62% of consumers think businesses can do more in terms of personalization because they’d prefer to feel like an experience is all about them.

Data supports that great customer service is an expectation, not a "nice-to-have." You'll attract new customers, prevent customer churn, and build your brand reputation and image with excellent customer service.

Every company is known for its customer service to some degree. Of course, you always want a positive brand image and customer service can be a significant determining factor.

1. Customer service affects your brand image and loyalty potential.

In many ways, your customer service team is the face of your brand. Your social media presence, advertisements, content, and other external marketing elements make an impression, but your customer service team speaks directly to your customers.

They are responsible for representing your brand when interacting with potential buyers. Customer service can break a company’s chance to turn a potential customer into a loyal customer. After a positive customer service experience, 89% of consumers report they are more likely to return and make another purchase. While making apurchasedecision, a critical factor for 66% of customers is the customer service reputation of the brand. W hen they receive poor customer service, 61% of consumers say they have cut ties with a brand.

Customer service is a key player when it comes to building your brand image and brand loyalty. Nearly three out of five consumers report that good customer service is vital to feel commitment toward a brand. Therefore, investing in a customer service team that accurately represents your mission and values is a worthy investment and a wise branding strategy.

2. Excellent customer service will protect relationships with customers who experience a mistake down the road.

When customers have a poor customer service experience, they're more likely to quickly share about it and leave the company than in previous years. And if you work in the B2B space, data shows that 51% of B2B companies start to avoid vendors after a poor customer service experience. However, if your company provides excellent customer service, 78% of consumers would do business with a company again after a mistake.

Additionally, only one in five consumers will forgive a bad experience at a company whose overall customer service they rate as “very poor,” while nearly 80% will forgive a bad experience if they rate the service team as “very good.”

3. A positive customer service reputation makes people more likely to do business with you.

Consumers consider customer service when they're making purchasing decisions. In fact, 78% of consumers use customer service to decide whether or not to do business with a company. This means that your company’s reputation for customer service will impact a large majority of potential customers.

Additionally, customer service doesn't begin and end with your frontline reps. The customer service potential customers experience during the sales process will also impact their purchasing decisions. Therefore, delivering positive customer service experiences should be the goal for any customer-facing role.

If a company doesn’t appreciate and properly resource its customer service team, it will show in the quality of service that customers receive. But when companies provide the proper training, technology, and work environment, customer service employees are a powerful force to turn satisfied customers into booming businesses.

1. Happy customer service employees will create happy customers.

Studies consistently show that happy employees are good for business. For example, recent research that studied customer service employees in a call center setting reported that happy employees were 13% more productive .

Despite this fact, not enough companies take employee satisfaction seriously—particularly in the case of customer service employees. According to our 2022 State of Customer Service report , almost 40% of customer service leaders say that their company views customer service as an expense rather than a driver for growth.

Companies can support their customer service team with the resources, technology, and respect they need to get more happy customers. When customer service staff are equipped to do their jobs well, they are more comfortable and motivated, and your customers are too.

2. Happy customers will refer others.

When humans have a memorable experience—good or bad—it’s natural to want to shout about it from the rooftops. But, of course, today’s rooftops are review websites and social media, with 55% of consumers sharing their purchases socially on Facebook, Twitter, Pinterest, and other social sites.

For better or worse, your most impacted customers will do word-of-mouth advertising for you. In fact, 66% of salespeople say that the highest quality leads come from existing customers. Since great customer service translates to happy customers, your customer service team can be a major catalyst for cheap promotion through positive word-of-mouth and referrals.

Much like your most loyal customers, referred customers are a business treasure. Referred customers:

• Amount to 5 to 15% of new customers
• Drive $6 trillion of annual consumer spending
• Can offer a 25x return on ad spend

"The purpose of a business is to create a customer who creates customers."

–Shiv Singh, Strategic Advisor

3. Good customer service encourages customers to remain loyal.

As we’ve covered, it's much cheaper to retain an old customer than to acquire a new one. So in this sense, the higher a customer's lifetime value—the total revenue a company can expect a single customer to generate throughout their relationship with that company—the higher the profit for your company.

In comparison to hundreds of possible competitors with similar products and services, your company has to do more than relish the exciting features of your products. You can differentiate your company from your competitors by providing stellar customer service. This is especially crucial when it’s time to launch a new product or service.

Your existing customers are 50% more likely to try a new product and spend 31% more money on it than a new customer, while new customers are only 5-20% likely to buy a product. But for those existing customers to stay long enough to consider a new product, it takes effort via customer service to keep them satisfied. 71% of consumers cited poor customer service as the reason they ended a relationship with a company.

Conversely, when your company’s customer service is excellent, you’re more likely to see your customers stick around and eventually try more of your offerings.

Loyalty is rooted in trust, and customers can trust real-life humans more than the ideas and values of a brand. So, by interacting with your customer service team, those customers can hopefully build life-long relationships with your business.

Beyond understanding how essential it is to put considerable effort into building a solid customer service team, companies need to provide employees with all the tools they need to deliver the type of consistent, proactive customer service required today.

Here are a few stats to keep in mind when improving your customer service team:

1. Customers expect high-quality service.

People don't just expect your business to have a customer service team; they anticipate your customer service team to be world-class and ready to help at a moment's notice.

In fact, according to new data gathered after the COVID-19 pandemic, more than half of those surveyed (58%) said their customer service expectations are higher today than they were a year prior.

Customers demand higher quality customer service: 66% said they would switch brands if they felt they were being "treated like a number, not an individual." And there’s plenty of room for businesses to grow, as 71% of customers say they want a consistent experience across channels, but only 29% say they get it.

Customers now have more options than ever before, and they're not afraid to take their business elsewhere if unsatisfied with their experience. So it's now on brands to meet customer expectations if they want to attract and retain loyal customers.

2. Businesses need omnichannel solutions.

Before COVID-19, businesses gradually explored new, digital ways to engage and support customers. But once the pandemic hit, this timeline accelerated significantly, and it was no longer a commodity for businesses to communicate with customers via social media, live chat, or video calls .

These communication channels appear to be here to stay for the foreseeable future. But, as we shared in our 2022 State of Customer Service report , only 50% of companies have enabled their service teams with the most basic service features a CRM can provide: a help desk, knowledge base, and shared email capabilities. As a result, many businesses have much catching up to do to provide their customer service teams with the tools they need to serve customers well across every channel.

Our State of Service report also found that all of the high-growth companies surveyed implemented several channels and tools, empowering their customer service teams and improved customer service.

Customers not only enjoy using these channels but, over time, they’ll expect them as a standard in the customer service industry. As a result, businesses need to invest in omnichannel solutions to link these new mediums together and create a seamless customer service experience.

The image below explains how omnichannel experiences work:

Image Source

Rather than having each channel operate independently, the channels link together so they can share messages and information freely. That way, customers don’t have to navigate away from what they’re doing to get help from your business.

Instead, any time they need help, they can reach out on any channel of their choice and will get an immediate, reliable response.

3. Excellent customer service is a competitive advantage.

No matter your industry, you want your business to stand out. After all, nobody strives to be the "second-best" at something. Instead, you want to be better than every other company you're competing with and want your customers to know it, too. That's the key to keeping customers loyal and getting them to interact with your brand continuously.

Customer service can be an excellent differentiator for your company. But churn occurs when a customer stops doing business with a brand and it’s often because of a poor customer service experience. At least 67% of this churn is preventable if the customer's problem is resolved during their first interaction.That means if you provide excellent customer service, you'll not only retain your customers but also acquire your competitors'.

It's undeniable that a well-trained, positive customer service team can make your company the best version of itself. Their ability to communicate directly with customers can revolutionize your company and grow your customer base .

“We see our customers as invited guests to a party, and we are the hosts.

It's our job every day to make every important aspect of the customer experience a little bit better.” –Jeff Bezos, Amazon Founder

Invest in Your Customer Service Team Today

There’s a strong, data-based case for the positive, multi-layered impact that great customer service can have on a business. The proof is in the research and the results: one significant aspect of a thriving business is to put effort and resources into recruiting and training top customer service talent.

So, now that you’ve seen the numbers, what will you do to raise the standard of customer service at your company?

Editor's note: This post was originally published in October 2018 and has been updated for comprehensiveness.

Don't forget to share this post!

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Lean more about customer service stats and best practices for 2022.

Service Hub provides everything you need to delight and retain customers while supporting the success of your whole front office

Good customer service definition, best practices, and examples

What is good customer service?

I like that LiveAgent provides such close support to our team, never leaving our agents without a reply. Also, they care about their customers and provide close interactions. Happy customer review

I really love the quick, responsive and helpful customer service given by LiveAgent. They have always gone above and beyond in answering questions, without leaving you waiting for hours or days trying to DIY it yourself. Satisfied customer review

7 key elements of good customer service

6 benefits of good customer service, customer insight and market understanding.

Software solutions like LiveAgent can also be valuable in delivering excellent customer service. LiveAgent combines ticketing, live chat, call center , and social media management capabilities into one platform, enabling businesses to centralize customer interactions and gain a comprehensive overview of customer needs. Its robust reporting and analytics features provide valuable insights that can be used to optimize customer service operations and improve customer satisfaction .

Building customer loyalty

Higher customer lifetime value, positive word of mouth and referrals, faster problem resolution, enhanced employee satisfaction, 7 qualities of good customer service, 1. responsiveness, 2. speed and efficiency, 3. competence, 4. consistency, 5. professionalism and courtesy, 6. convenience, 7. being proactive, 6 tips to deliver top-notch customer service, implement self-service options, offer omnichannel support.

A great way to provide this level of support is by implementing a solution like LiveAgent help desk software . With LiveAgent, your customer support team can easily manage all the customers interactions from one universal inbox instead of switching between multiple platforms and losing track of all the customer inquiries.

Streamline with a ticketing system

LiveAgent offers a ticketing tool that can help you organize all communications and keep any customer communication in one ticket thread. You can also create internal tickets that are only visible by other team members. You can use them as notes, reminders, or share important information with your colleagues to facilitate collaboration.

Practice active listening

Show gratitude and appreciation.

By expressing gratitude, whether it is through a personalized thank-you note or a simple verbal acknowledgment, you create a memorable and positive customer experience. This can lead to increased customer loyalty and advocacy because it makes the customer feel valued for choosing your business. Customers who feel appreciated are more likely to become repeat customers and recommend your business to others, driving growth through positive word-of-mouth.

Train and empower your team

Inspire your team, 5 real-life excellent customer service examples.

Zappos is an online retail company that is known for its exceptional customer service through Twitter. Their customer support team actively engages with customers, resolves issues, answers queries, and offers timely assistance in a friendly and helpful manner.

Another great way to show your customers that you care is by offering random acts of kindness. It doesn’t have to be anything big. The important thing is listening to your customers, what they want or need and act on it. One example of a brand that does this well is Lego.

Another example of great customer service is Apple. With their diverse range of products, Apple has revolutionized the tech industry and gathered a devoted following worldwide. But that’s not all! Not only does Apple provide great products, they also set the bar high when it comes to their customer service by offering a personalized approach to technical support.

Uber is a transportation and ride-hailing platform that revolutionized the way people travel by connecting riders with drivers through a mobile app. With its competitive pricing and extensive availability, Uber has become a popular choice for individuals seeking reliable and efficient transportation services.

With a focus on offering affordable and stylish solutions for everyday living, IKEA has gained worldwide popularity. More than that, it is a popular store for individuals and families to spend their free time at.

You are one step closer to excellent customer service

Frequently asked questions, what are the 5 must-have qualities of support reps, what are the most common mistakes that negatively influence effective customer service, what is the role of feedback in improving customer service, how can you provide outstanding customer service using liveagent, what is excellent customer service in bpo.

Discover the benefits of customer service metrics. Learn how to calculate and improve them for enhanced customer satisfaction and loyalty.

Learn tips on how to drive a high level of engagement through personalization and build long-lasting relationships with your customers.

Customer service is an interaction between customer and service provider. CS helps people solve their problems and it builds relationship with customers.

Take your customer service from good to great with our 5 strategies for repeat orders and watch your business grow rapidly.

You will be in Good Hands!

99 Customer Service Essay Topic Ideas & Examples

🏆 best customer service topic ideas & essay examples, 👍 good essay topics on customer service, ❓ customer service essay questions.

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• Customer Service Training The main objective of a needs assessment in an organization’s training program is to identify performance weaknesses and necessary knowledge and skills needed to eradicate the weaknesses.
• Customer Service and Interpersonal Experience: Starbucks The focus of the paper is on the principles on which the company was created and this is tackled in the background section of this paper.
• Role of Customer Service in Technology Industry However, it is significant to note that the preciseness of the value of customer service in an organisation varies in relation to the industry, the service offered and or the product being offered for sale.
• Developing Competitive Advantage Through Customer Service The achievements of the company are attributed to its ability to attract and retain large numbers of customers from all parts of the world.
• Customer Service Improvement: Mobilicity Phone Company With this situation in mind, I would like to propose to the CEO on the best advertisement solutions that would assist in improving the popularity of the company and hence its sales as well as […]
• Stress Management among Customer Service Employees: Antecedents & Interventions A focus on the identification of current and potential stressors affecting this group of employees, and the subsequent development of interventions which could be used by the employees to manage and curtail stress effectively, is […]
• Customer Service Excellence and Customer Satisfaction In service offering, product refers to a service concept that has the capacity to give value to customers. Here, their aim in the customer service system should be to boost the quality of their interactions […]
• Socially Responsible Marketing and Customer Service To achieve this, organizations need to bring both the internal and external stakeholders together in such a way that they can share in the effort of maximizing the bottom line of the company.
• The Problem of Customer Service in Companies In fact, one of the founders noted how customer service greatly impact on the products that the company sells and highlighted the very important part of their policy which is allowing the customer to provide […]
• Empowerment in Customer Service Management The term empowerment refers to the process of providing more authority to the employees of an organization. Chebat and Kollias argue that the service industry is hugely dependent on the capacity of employees to deliver […]
• Customer Service Operations and Excellence The Meriden Hospital is one of the many hospitals and clinics belonging to the BMI Healthcare organization owned by the General Healthcare Group PLC.
• Hospitality Customer Service – Service Recovery Project As such, it is always important that the customer service supervisor is able to read the psychology of his or her staffers and ensure that all are of positive attitude to avoid service breakdown.
• Customer Service Representative It will help to collect the necessary data to design the most effective training program for customer service representatives. It is also important to note that questionnaires should contain data concerning the future training program.
• IT Role in Business Processes and Customer Service More importantly, the company implements the concept of full transparency of operations and is more attached to a scientific way of thinking.
• Customer Service at WestJet The success behind WestJet as a low-cost carrier is mainly attributed to the quality of service that the airline provides to its passengers.
• Customer Service Coordination Self-management on the other hand is the key factor because the coordinator must be self-aware all the time in relation to the environment and the needs of the customers.
• What Constitutes Good Customer Service?
• How Consistent and Reliable Customer Service Contributes to Customer Satisfaction?
• How Customer Service Grown and Changed Over the Years?
• How Does Customer Service Help Your Team?
• How Can Email Improve Your Customer Service?
• How Can Marketing Research Improve Customer Service of Popular?
• How Are Millennials Redefining Customer Service?
• What Reasons for Using Customer Service Policies Marketing?
• What Recommendations for the Customer Service Branch?
• What Makes Good Customer Service?
• Where Has Customer Service Gone?
• Why Customer Service Needed in Globalization of Logistics?
• Will Improving Customer Service Result in Higher Stock?
• Does the Web Reduce Customer Service Cost?
• Can Customer Service Affect the Business a Restaurant Has?
• What Relationship Between Customer Service and Logistics Management?
• How Are Strategic Management and Customer Service Connected?
• What Is the Customer Service Perspective?
• Which Administrative and Customer Service Skills Need?
• How Different Communication Techniques Used in Customer Service?
• How Can International Retailers Achieve a Competitive Advantage Through Customer Service?
• What Are the Three Essential Qualities of Customer Service?
• What Is the Role of Customer Service?
• What Are Customer Service Skills?
• What Words Describe Good Customer Service?
• How Is Culture and Customer Service Excellence Connected?
• Chicago (A-D)
• Chicago (N-B)

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Importance of Customer Service Essay Sample

Customer service is the support offered to customers that helps to provide an easy and enjoyable experience with your company. Customer service is about going above and beyond to keep the customers happy. Answering their questions, addressing concerns, and simply listening allows the customer to know you are putting them first. It is about the clear communication between the customer and business, making sure that the customer is content. Even by resolving their issues with a positive attitude, it is an important part of the promise your company makes to ensure your customer’s needs are being met. To provide quality customer service, there are many rules to ensure quality service. Being helpful, listening, and taking the extra step are all important. The biggest rule is that employees of the company must be trained properly. Companies must train their staff first and foremost because if a customer’s needs are poorly met, this will affect how satisfied the customer is or not at all. If the employee is not taught the knowledge on how to satisfy their customer, this not only affects business but the customers perceptions as well. That being said, employee training has a positive and negative impact on customer satisfaction in customer service. 

In the hospitality industry, the direct interactions between the consumer and business are crucially important. Businesses simply do not exist without customers. Catering to the needs of each customer is key to customer retention, to create loyal returning clients. To provide excellent customer service, the culture of aiding customers must be widespread throughout the organization. This creates a powerful work environment, where the goal for all staff as a team is to make each and every customer happy and do what it takes to get there. When quality customer service is understood, employees become empowered and only strive to succeed more with the organization. Satisfying customers leads to a successful business, and that's where the initiative will be taken to keep providing quality service across the board. Overall, this training is an important tool that businesses use to ensure all employees within this culture are on the same page. As a necessary part of onboarding, you may have to pour some money and mainly time into it. According to the ATD report, employers use an average of 33.5 training hours per employee (Gray).  Despite the process, in the long run, successful training helps to provide more revenue for the business and increase employee retention. Training the employees properly the first time helps to reduce the risk of employee turnover. In the same report, one study found that 43.98% of employee turnovers take place within the first six months (Gray). Since training and the onboarding process also take place during this time, making sure training methods are effective is crucially important. Otherwise, the process may have to start over, taking away more time and money for your business a second time. 

Effective training methods provided by your employer help to create star employees. By being trained with the proper knowledge of customer service consumers are happier with their experience. In the archive, Customer Service Delivery Research and Best Practice, the third chapter goes into research of using employee perspectives to improve organizational performances. In training, employees have written development plans to take advantage of the skill opportunities that exist within the company, they have the training to perform their current jobs well, and new employees are oriented and able to come up to speed quickly, without undue burden on existing staff (Fogli, Lawrence 56). When looking at the results of training, employees understand their role in the organization, and now have enough information to do their jobs. There is a larger opportunity for teamwork, as the employees can collectively strive to achieve their individual goals. Employee retention and satisfaction are now created as the employee can now see their value and are satisfied with their organization’s work. Employees value their relationship with the organization and have no short-term interest in leaving (Fogli, Lawrence 57). Employee motivation is also evident. According to the study “Impact of employee motivation on employee performance,” it is considered a force that drives the employees toward attaining specific goals and objectives of the organization. Nowadays, it is one of the sizzling  issues in organizations since everyone wants to make the best use of their financial and human resources (Shahzadi). By the organization providing all the tools and knowledge to this employee, are skills developed as the employee can now effectively work successfully for the company. Understanding the true values of the organization helps to properly serve customers so their needs are met. Proper training has a positive impact on customer service ensuring that customers are happy, as well as the employees with themselves. 

Although quality customer service is important, sometimes it is not always what the customers receive. In the web archive, The effect of employee training and participation on customer satisfaction, does Jacob Zulnaidi dig deeper into the true impact of poor training and the impact it has on the customers. It is stated that “Training is essential for organizational aims, to develop effective and positive employee attitudes...This report revealed the positive outcome of employee training on both employee and customer satisfaction. The training itself is found to be one of the most important factors for employees to remain motivated in performing their jobs, because training provides them with new skills and knowledge, both of which require them to perform their jobs.” In addition, “Training would enable employees to improve their knowledge and skills related to their work, which later becomes translated into higher productivity…” The archive supports the idea that training has a direct correlation to both employee and customer satisfaction. Proper training has many opportunities including employee retention, customer retention, and even employee empowerment in the workplace. It is evident that through improper training, there is no chance for any of this. Poor training falls back to how that employee handles customers and how they are treated/serviced. Employee training can harmcustomer service and satisfaction.

In conclusion, it can be proven that employee training has a direct correlation with customer satisfaction within customer service. There are many factors that are impacted by this, but most importantly, poor and proper training affects the individual, the organization, and the customer's experience. This research has shown many insights on the positive and negative aspects of training, as well as the impact on customer service. Any business values quality customer service as there is the need to keep customers and clients happy. Within the hospitality industry specifically, customer service is even more crucial as guests need to be engaged in order for repeat business and referral purposes. If customers are happy with their experiences, there is an increased chance they will create a positive word of mouth and help your business succeed. To ensure that the organization values this quality service, it is important to properly train staff in accordance with this. Knowing how to fix problems and solve them with a positive attitude is a helpful skill for anyone to learn. It is important through proper training to learn this skill set and understand why quality customer service is so important. Happy customers make happy employees. By ensuring customer satisfaction are employees happier and more confident in their work. Proper training creates an empowering work environment, where the employee values themselves and the company. Strong quality customer service is achieved when the employees are happy, and the customers are happy as well.

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Essay on Customer Service Experience

Students are often asked to write an essay on Customer Service Experience in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Customer Service Experience

Understanding customer service experience.

Customer service experience is about how a business treats its customers. It’s about making customers feel important and valued. Good service means quick and helpful responses to questions or problems. It’s about making sure the customer is happy.

The Importance of Good Customer Service

Good customer service is important because it helps businesses grow. When customers are happy, they keep coming back and they tell others about their good experience. This can lead to more customers and more sales for the business.

Ways to Improve Customer Service

Businesses can improve customer service in many ways. They can train their staff to be polite and helpful. They can also use technology, like websites and apps, to make it easy for customers to find information or get help.

Impact of Bad Customer Service

Bad customer service can hurt a business. Customers who have a bad experience may stop buying from the business. They might also tell others about their bad experience, which can damage the business’s reputation.

250 Words Essay on Customer Service Experience

What is customer service experience.

Customer Service Experience is about how a company treats its customers. It’s about how happy or sad a customer feels after buying a product or service from a company.

Why is it Important?

Customer Service Experience is very important for a company. If customers are happy, they will buy more from the company. They will also tell their friends about the company. This will help the company make more money.

Parts of Good Customer Service Experience

A good Customer Service Experience has many parts. First, the company must listen to the customer. They must understand what the customer needs. Second, the company must be nice to the customer. They must treat the customer with respect. Third, the company must solve the customer’s problem. They must make sure the customer is happy with the solution.

Bad Customer Service Experience

A bad Customer Service Experience can make a customer very sad. The customer may not want to buy from the company again. They may also tell their friends not to buy from the company. This can make the company lose money.

In conclusion, Customer Service Experience is very important for a company. A good Customer Service Experience can help a company make more money. A bad Customer Service Experience can make a company lose money. So, companies should always try to give their customers a good Customer Service Experience.

500 Words Essay on Customer Service Experience

Customer service experience is the feeling a customer gets when they interact with a company. It’s all about how a company treats its customers. This can happen in person, over the phone, or online. The goal is to make the customer happy and satisfied. Good customer service can make people feel valued and want to come back. On the other hand, bad customer service can make people feel upset and not want to do business with the company again.

Customer service experience is very important for a company. It can make the difference between a company’s success and failure. When customers have a good experience, they are more likely to buy more products or services. They might also tell their friends and family about the company, bringing in new customers. If customers have a bad experience, they might stop buying from the company and tell others about their bad experience.

Elements of Good Customer Service Experience

There are several things that make up a good customer service experience. First, the company needs to listen to its customers. They need to understand what the customer wants and needs. Second, the company needs to be responsive. If a customer has a problem, the company needs to fix it quickly. Third, the company needs to be polite and respectful. Treating customers with kindness can go a long way.

How can Companies Improve Customer Service Experience?

There are many ways a company can improve its customer service experience. One way is to train its employees. Employees need to know how to handle different situations and how to treat customers well. Another way is to use technology. Technology can help companies track customer complaints and see how they are resolved. This can help them learn from their mistakes and do better in the future.

Impact of Online Customer Service Experience

Online customer service experience is becoming more and more important. This is because many people now shop online. Just like in a physical store, customers want to have a good experience when they shop online. This means that the website needs to be easy to use. It also means that the company needs to respond quickly to any problems or questions. If a company can do this well, it can attract and keep more customers.

In conclusion, customer service experience is a crucial part of any business. It can greatly affect a company’s success. Companies need to work hard to provide a good customer service experience, both in person and online. This will help them keep their customers and attract new ones.

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Importance of Customer Service

Good customer service can boost customer retention and build your brand’s reputation. Learn more about the importance of customer service here.

The importance of customer service for your business cannot be overstated. Your customer service team is a direct connection between your customers and your company. Implementing essential customer service can improve your relationships with customers and improve your business. Essential customer service is also what keeps your customers coming back to your company over time.

With top notch customer service, companies can cut down on customer acquisition costs and develop a loyal following. Loyal customers even bring companies more business. They convince other prospects to purchase your brand and that is great free advertising for any business.

In this article, we go over the reasons why customer service is important. With a better understanding of the importance of customer service, you can optimize the customer experience at your company. So keep reading to learn more about the importance of customer service.

8 reasons why customer service is important

Good customer service entails listening to your customers and valuing their opinions. A company's culture is expressed with good customer service—they go hand-in-hand. Maintain good customer service, and your company culture will be recognized by your customers.

But good customer service has an impact that goes beyond company culture. In fact, providing a good customer service experience has several real-world impacts on your business performance and how your company is perceived by the public.

By providing excellent customer service, companies can enjoy all sorts of benefits. Below, we’ve listed eight examples of important benefits so that you can better understand how important customer service really is.

1. Retain your customers

Good customer service always helps retain your customers. It is what keeps your customers coming back for more purchases. Retaining customers increases your revenue and it’s also much cheaper to keep a customer than to try to gain a new one. You can retain your customers by offering personalized experiences, convenience, and attentive customer service.

When it comes to the importance of customer service, customer retention is one of the biggest factors to keep in mind. This is illustrated by the fact that 89% of customers are more likely to complete an additional purchase following a good customer service experience. Thus, when you give your customers great experiences, they’ll continue to come back for more.

2. Encourage customer loyalty

Customer loyalty is a customer’s commitment to your business or to your brand. A loyal customer will always select your business over another brand and this helps to eliminate your competition. Without a doubt, loyal customers are a very valuable asset for a business to have. Repeat customers almost always purchase more and more often. You can encourage customer loyalty by offering your customers rewards programs, good discounts, and excellent customer service.

3. Build a strong culture and reputation

A strong culture and reputation goes a long way for any brand. The culture is the psychology, attitudes, and beliefs that influence a brand experience. The story of your company and how your team members engage with it is what develops culture and reputation.

In order to first develop your culture, you first need to define your brand culture. You need to define what values you want your employees to embrace. Take time to think about it and write it down. Keep in mind that your customers need to be able to differentiate you from your competitors when it comes to values.

Next, you need to flaunt it, and that starts with top management. Visual branding is also important. Make sure your brand's logo reflects your culture. Also, use your company’s social media pages to display your brand and demonstrate good customer service. Encourage employees to share positive customer experiences and have your employees actively engaged with your brand's culture. Doing all of this will help build a strong culture and reputation. The end result will be growth for your brand. Referrals are a powerful way to have your customers do your marketing for you.

4. Get referrals

Where do you go when you have a problem? You turn to your network of family and friends. Whether you're looking for a new car, a doctor, or a realtor, you reach out to the people that you trust. The importance of referrals is undeniable.

Referrals are a powerful way to get your customers to do the marketing for you and, with great customer service, you increase the chances that current customers will refer you to their social circle.

At the same time, remember that referrals can work in a negative way as well. For instance, if you provide inadequate customer service, your customers may share their experiences with friends and colleagues. Bad referrals can be the building blocks of a negative reputation, and can ultimately drive away future customers in the long run.

5. Boost sales

Implement an effective customer service approach in order to boost sales at your company. You can accomplish this by quickly handling any issues that arise and ensuring that your customers are treated in a special way. Let them know that they are appreciated. You might even offer discounts, free samples, and promotions.

By providing consistently great customer service, you incentivize repeat business and draw new customers in. Over time, this can help your organization expand its reach and increase sales.

6. Upsell products

Upselling is when you offer the customer a high priced option or an add-on to the product they are buying. For example, you can add a warranty to a product ,or you can introduce a newer, larger screen to TV that a customer is already looking at.

When you focus on delivering great customer service, it becomes easier to upsell your customers and increase your bottom line. This is because customer service builds trust between a company and consumer. If a customer feels that they have been treated well by your organization in the past, they’ll likely be more inclined to increase their spending with you and explore additional services you may offer.

7. Improve employee happiness

While you may think that providing great customer service only makes the customer happy , it’s important to note that a good customer service system can boost employee happiness as well. This is because happier customers tend to lead to happier employees. Positive professional relationships facilitate happiness for both parties, whereas upset or confused customers can lead to employee stress and burnout.

8. Remain competitive in the marketplace

Good customer service can be a valuable selling point for your business. After all, if two companies offer a similar product but one provides much better customer service than the other, which company do you think more consumers will choose?

Every customer wants to be supported and treated with respect. When you employ effective customer service strategies, you can gain a competitive advantage over other businesses by building lasting relationships with customers.

Tips for providing good customer service

Good customer service is essential in order to stay in business. Be sure to train your employees to provide good customer service. Train them to be good listeners and problem solvers. To help you do this, here are a few tips for providing good customer service.

Be proactive

In order to provide proactive customer service, you should anticipate customer problems and address them before they become an issue. This may mean setting up an easy-to-use customer support center on your website, writing out detailed FAQ pages, or tweaking the customer journey to streamline the customer experience.

In any case, being proactive is better than being reactive. When you have to react to customer problems, it can often be difficult to find a quick solution that’s satisfying for both you and the customer. Avoid this dilemma entirely by being proactive with your customer service.

Get feedback

Getting feedback is an effective way for learning your weaknesses and strengths. It sets the groundwork for improvement. A good way to get feedback is to provide opportunities for both your employees and your customers to rate the customer service experience.

In order to solicit feedback, you may send out customer surveys or set up focus groups to find areas for improvement. However you get feedback, try to keep it anonymous. People are always more honest when they can be anonymous with their responses. Once you get all of the feedback, you can implement changes where needed.

Provide training

Always provide training for your employees. Training should always be ongoing, as one can never stop learning. Keep your employees informed about new products and ways to use them. They will transfer that knowledge to your customers. Also, it will help you employees feel more confident on the job and create a positive customer service experience for everyone involved in the process.

In order to keep your employees trained, devise a training schedule and stick to it. A training schedule may include anything from customer service workshops to lectures about how to use new technologies. Just remember that well-trained employees are going to be better equipped to provide customers with excellent service.

Final notes

As already mentioned above, excellent customer service cannot be overstated, and all of the categories discussed above are an important part of the puzzle to accomplish excellent customer service. If you don't implement all the categories above, the puzzle will remain unsolved and your business may suffer for it. That means that your customer service will always need improvement, thus delivering excellent customer service should always be a work in progress for companies.

Keep in mind that with the right technology and tools, it becomes much easier to manage customer relationships and provide a great customer service experience. At Mailchimp, we understand why customer service is important. That’s why we provide organizations with the tools they need to optimize the customer journey and build long-term customer relationships. So, whether you want to use our CRM tools or our email marketing platform, sign up for Mailchimp to get the tools your business needs today.

Related Topics

• Customer Retention
• Audience Insights
• Customer Re-Engagement
• Segmentation
• Connect with Customers
• Target Your Audience
• Grow Your Audience

Home — Essay Samples — Business — Customer Service — Excellence in Customer Service

Excellence in Customer Service

• Categories: Customer Service

About this sample

Words: 1287 |

Published: Dec 12, 2018

Words: 1287 | Pages: 3 | 7 min read

Table of contents

Customer relationship marketing, service communications, demand and capacity management, performance measurement.

• An ideal performance management system is one that energizes the people in an organization to focus effort on
• Improving things that really matter
• One that gives people the information and freedom that they need to realize
• Their potential within their own roles and that aligns their contribution with the success of the enterprise.

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Customer Service Essay Examples

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