While some companies such as natural monopolies and companies with a strong pricing advantage in their markets or a unique product may think that they can afford to skimp on customer service, any company which does not have a strong relationship with its customers is vulnerable to disruption. Companies, therefore, increasingly think of customer service as part of their branding and marketing, and as a source of profitability rather than just an expense. Thus many companies are moving to a philosophy of total "customer relationship management" of which customer service and loyalty programs are part.
The key to providing superior customer service is hiring the right people. They should be friendly, cheerful, and familiar with your products. Providing a good work environment and a genuine career path means that you will be able to retain your best staff. Next, you should make your customers feel that you care about them by aiming for quick response times and giving them a sense that you are concerned as much about their needs as your profits. Be proactive rather than reactive, following up rather than waiting for complaints.
One pitfall to avoid is inadequate staffing on or just after peak periods. You need to closely monitor staffing patterns to avoid bottlenecks. A second pitfall is social media. Both good and bad customer service can go viral very quickly. This means that you need to constantly monitor social media and proactively intervene before any negative issues become viral.
A recent survey shows that 9 out of 10 customers are willing to pay more for better customer service. If a customer has a good experience at a given store or website, the customer is not only likely to return, but to make recommendations to friends and to give the company positive reviews.
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