Understanding the Effects of Customer Service

Introduction to Customer Service

What is good customer service?

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• Good customer service is important in providing a good customer experience. There are four main aspects to good customer service:
• Friendliness – greeting customers and showing courtesy and politeness is important in making them feel welcome.
• Empathy – the customer needs to know that the service provider appreciates their wants and circumstances.
• Fairness – the customer wants to feel they receive adequate attention and reasonable answers.
• Information – customers want to know about products and services but in a pertinent and time-sensitive manner. It's important to show product information and knowledge.

Effects of good customer service:

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• Increased business and profits​​​​​​​
• Customer loyalty
• Staff motivation and career progression
• Competitive advantage
• Reduced customer dissatisfaction and complaints​​​​​​​
• Improved mystery shopper reports and consumer reviews

What is bad customer service?

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• Not listening to customers
• Negative body language
• Lack of responsiveness
• Ignorance
• Failing to meet customer expectations
• Poor attitude
• Poor appearance and presentation
• Unclean and untidy displays
• Poor signage

Effects of bad customer service:

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• Reduced profit
• Poor reputation
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• Reduced customer loyalty
• Increased customer complaints
• Reduced staff morale