Customer service is a direct interaction between a customer buying a product or service and an agent from the company they transact. It is also a part of an organization dedicated to answering customer queries and other concerns. Similarly, it is a way of treating customers politely and courteously for business continuity.
While most organizations have dozens of employees working to meet common goals and objectives, only a handful interact with customers. Yet, customers will perceive the company and its products and services based on how customer service agents treat them. In this regard, most businesses strive to improve customer satisfaction levels.
There are many customer service types, but they all fall into three broad categories: traditional walk-in customer service, phone support, and online customer service. Walk-in customer service involves customers visiting a physical location where they get assistance. With phone support, businesses have dedicated hotlines where customers can call and talk to their agents. Studies claim that about 40 percent of customers prefer to call, especially regarding technical issues.
Interactive voice response (IVR) also falls under phone support. It is an automated system serving as a customer’s first contact point. It gives menu options for varying issues and can sometimes assist a caller in resolving a problem without necessarily connecting to a human being.
There is email support, live chat, social media customer support, chatbots, and self-service portals with online customer services. Each has its unique characteristics and benefits. Any choice of these depends on their availability and a customer’s preference.
Regarding email support, about half of the world’s population has email accounts making it an ideal channel. Live chat combines a human touch and a digital appeal for those seeking to combine the two. For social media, businesses have taken advantage of platforms such as Facebook and Instagram, owing to their vast following, to give their customers platforms for assistance.
Chatbots are automated virtual assistants that can handle most human tasks. Some people prefer them since they are quick and efficient. Last, self-service customer service entails a knowledge base where clients can get answers to their issues. Sixty-one percent of customers want to solve problems independently, making online self-service platforms a popular option.
Among the benefits, customer service increases a product’s or service’s value. Indeed, a good product or service by itself is satisfactory. However, excellent customer service makes it even more appealing. Consequently, customers will purchase more of it, increasing revenue for a business. Experts also claim that some even pay more for a product or service if it comes with good customer service.
Customer service also creates customer retention. When a business retains its customers, it safeguards its continuity. Studies claim that a 5 percent customer retention increase can increase profits by 25 percent, mainly through repeat business. With increased profits, a company may spend less on operating costs. Additionally, customer retention is cheaper than customer acquisition, advertising, and marketing.
Without customer service, customers may not understand what a brand represents. Therefore, they resort to creating perceptions about a business’ brand, some of which may hurt the organization. However, customer service agents talk directly to customers and help represent a brand. Research claims that customer service is essential in creating brand loyalty.
Good customer service also sets a business apart from others in its industry. Customer satisfaction ensures clients don’t switch brands. Ultimately, the business with the best service always has a competitive advantage.
Besides, satisfied customers become brand ambassadors. They help bring awareness to a business’ products and services. Consequently, the company may spend less on advertising and marketing.
