Marketing: Customer service - CCEA

Customer service

Many factors contribute to providing good customer service:

• knowledgeable, helpful and friendly staff

• meeting all legal requirements

• quick delivery

• efficient service

• excellent after-sales service and support

• good product availability

Good customer service is important. Not only is it an effective way of gaining new customers, but those who are satisfied with their purchase and the customer service they have received are more likely to be retained as customers, potentially becoming regular customers. When customers post recommendations online, or speak positively about a business to people they know, this helps the business to build a good reputation and positive brand image.

Good service can attract customers to a business and make them feel valued. Customers are usually happy to pay more for a product or service if it is accompanied by good customer service and is good quality and good value for money.

Excellent customer service is a good way to differentiate a product from the competition and can provide a competitive advantage, which allows businesses to charge a premium price. This can also lead to increased sales via repeat purchases.

Reasons to provide good customer service: a summary

Effective customer service is important because:

• it gives a business a competitive advantage over other businesses

• it will be rewarded with customer loyalty – the customers will remain with that organisation

• if it deals with complaints effectively, customer loyalty is further strengthened

• this will improve sales and profit levels

• it will attract new customers

• it will make the employees more efficient

• it will improve communication in the business

• it will make employees more aware of the needs of all types of customers – different age, groups, cultural backgrounds, customers with young children and groups with other specific needs

Good customer service does not stop once a purchase is made. After-sales service involves providing support for customers who have bought a product or service from a business. For example, a business might provide assistance to a customer who has bought a new computer and needs help using it. Alternatively, after-sales service may involve dealing with complaints efficiently when a product or service is faulty or does not meet customer expectations. Many retailers do this by providing an online service, eg a chat facility with customer service personnel, where questions and problems are dealt with quickly.

How can you measure customer service?

Customer service can be judged in the following ways:

• Timelines eg – calls should be answered in 20 seconds

• Accuracy eg – customers should always receive the correct order

• Appropriateness eg – if the customer has two difficulties with the firm, both of them should be solved

Final check