What are the benefits of good customer service?

Good customer service creates a range of potential benefits for a business. From a marketing viewpoint, a rapid and effective response to customer questions about a product should increase customer understanding, helping them to decide whether a product will address their needs, hopefully resulting in a purchase. Even if the answer is 'no' in this particular case, effective service should create a positive and lasting image, which may lead to purchases in the future. Creating and improving customer loyalty through consistently excellent customer service can reduce the need for costly advertising, especially as customers are likely to make recommendations to family and friends, based on their own positive experience.

Training employees to deliver excellent customer service can also lead to benefits for the staff themselves - a positive working environment helps to increase wellbeing and motivation, which may lead to improved staff retention, lower absenteeism and greater productivity.

Good customer service means that the service provided to customers is of high quality and in-depth. Having good customer service increases the loyalty of customers. This means that customers will carry out repeat purchases due to being loyal, which therefore increases the business's customer base. An increased customer base leads to higher sales and therefore leads to revenue maximisation. This can also lead to higher profits, which the business can then invest back into the business to increase growth/reach e.g. investing in marketing.

Hi Damien. In answer to your question please note the following:-

Customer service involves the interaction between the business and the customer before, during and after the sales process.

The benefits to a business of providing good customer service are numerous. It can increase customer loyalty. If the customer has a good purchasing experience they are more likely to return to the same business in the future. Customers are more likely to purchase from a business and may increase their spending with that business. Through good customer service the business can build good relationships with their customers and gain a good reputation. The business may become well known for its good service and may attract new customers. In the long term this will lead to increased sales, market share and increased profits.

The benefits of good customer service would include: Customers would return to the business for repeat business, positive word of mouth advertising by customers and adding value (i.e. customers would pay extra for good service e.g. travelling first class in an airplane).

Good customer service has the following potential benefits:

• Improves retention, leading to repeat business
• Increases visibility through good reviews and referrals
• Lowers average cost to acquire a customer, as repeat customers are typically cheaper than winning new customers