What is Customer Service and Why is it Important?

Customer Service – Definition

Customer service is all the support that a company or a business offers its customers, both before and after they purchase its products or services.

Customer service can be done in a variety of ways – by phone, email, website, social media accounts and more.

In large companies, there is a dedicated customer service department, but it is important to understand that customer service is actually done every time the customer comes into contact with the business or one of its employees.

What is the importance of customer service to the success of a business?

Customer service is now considered a central component of the relationship between each business and its customers.

If in the past, customers have chosen to purchase products primarily on the basis of their offered product or service and prices, many customers today also take into consideration the quality of the company’s customer service from which they make the purchase.

Good customer service underpins a positive customer experience and can help create high customer loyalty for the business and its products.

The impact of customer service on the bottom line of business

It is well-known that it is “cheaper to retain existing customers than to find new ones,” and indeed, the cost of acquiring new customers is estimated to be 6 times higher than retaining existing customers.

Quality customer service can increase customer retention rates, reduce marketing expenses and significantly improve the overall line of business profits.

The reputation of the business also depends on customer service

Customers who are dissatisfied with the customer service they receive from one company or another today share their dissatisfaction with social networks.

In some cases, such collaborations become viral and quickly reach large audiences.

Good and efficient customer service can prevent reputation damage to the business, and prevent, or quickly deal, with cases of customer dissatisfaction.

Customers are willing to pay more for a better experience

Many customers know how to appreciate a good customer experience. Surveys show that 86% of consumers are willing to pay more for better customer experience, and good customer experience is also directly related to superior customer service.