Customer Service Like Completely Vital Component of Success

For a business, customer service is completely vital for their success. This is due to the fact that communication with an employee is often the first point of contact for the customer and as such will be how the customer gets their impression of a business. Therefore, it is very important and could determine whether or not a sale is made and whether the customer returns again.

For instance, if there were two businesses selling the same piece of clothing at the same price, the difference of gaining the sale could be down to how important and special the customer feels when they buy products from the store as well as the first impressions that play a key role. This is known as a ‘competitive advantage’.

Customer service is a key to a business's succession within the market sector. This is caused by creating an almost loving and welcoming first impression to help build a loyal customer database. As research shows that customers are much more likely to return to a more expensive shop if they believe they as customers are treated with respect and decency. Therefore, encouraging them to make repeat purchases.

Indicators of improved performance

Successful businesses identify key performance indicators (KPIs) to measure improvements. They could use results from a previous survey as a benchmark to evaluate the successfulness of planned improvements based on feedback.

Reduction in number of complaints

Amazon identifying customer complaints helps them to target issues and create desirable improvements within their e.g. website or customer service. When corrected the smallest problem can result in significant impacts -

• Major complaints often take longer to put right
• Simple or small problems can often become quick wins
• What appears to be a small problem might be significant when repeatedly complained about
• Complaints cost businesses money and reputation

Increase in profits

Amazon has seen that by having resolved many common complaints this has led to an increase in profit and is a key indicator for monitoring and evaluation. Businesses like Amazon will report their profits to stakeholders at key points of the year. This is used as a benchmark for success and analysts will review the accounts of a business to determine its success. Improved profits could be for a variety of reasons and an increase in profits is generally viewed as a key indicator of success.

Reduction in turnover of staff

Staff turnover is often reduced if businesses find out what their employees (internal customers) like about them and what they can do to improve job satisfaction. Businesses will use customer satisfaction data to monitor employee performance. Some firms reward employees with bonuses.

Businesses set targets for their employees which are reviewed at an appraisal. Good appraisals allow for the employee to reflect on their progress and achievements and identify possible training needs or methods of progression. Productivity will increase when employees feel motivated and loyal to the business.

Repeat business from loyal customers.

Loyal customers bring repeat business and retaining customers is usually the most cost-effective way of running a business. Many businesses offer customer loyalty schemes or cards. These methods vary in the rewards they offer. They also provide businesses with data about their customer in terms of shopping habits.

Disadvantages

Although there are many benefits for an organization to have a wide variety of employees in their stores and offices this can cause friction between the employees. This could lead to a disruption or the quality of work customer service to drop which could create a bad reputation for e.g. Amazon.

Methods to monitor and improve customer service

Amazon gives their customers the opportunity to provide them with feedback through the use of a rating on their product as well as by emailing them directly. This helps them to develop and shape their customer service more to fit the standards that their customers expect.

I believe this is a really useful way of getting first-hand customer service feedback as it is available to anyone at any time allowing for a wide range of customer feedback experiences.