Considered a fundamental aspect of a business’s operations, customer service is an essential process which can offer the business brand loyalty, publicity and efficient function therefore increasing profits. This notion is extensively portrayed in operations process of Qantas.
Customer service statistics are a valuable internal input to the planning process and in forecasting future customer needs and expectations. It is an intangible output that requires extensive contact with customers, is labour-intensive and is very difficult to measure. A business can gain a competitive advantage within its market with customer is if it is lacking with its product. Good customer service is an aspect of relationship marketing and can enable a business to charge higher prices and lessen the need to reduce costs elsewhere in the business.
The result of having good customer service:
Brand loyalty; customers buy and keep returning
Assists in maintaining the 80/20 relationship
Identification; customer service can help differentiate itself from competing businesses
Publicity; customers who have experienced positive customer service is more likely to share a better review and publicise the brand in a positive way
Feedback; feedback provides continuous improve for the business and is also another way to get direct contact with the operations managers
Function; companies with excelling customer service is more likely to earn a larger profit due to brand loyal customers. Contrastingly a business with poor customer service is more likely to earn less profit therefore affecting the business function and survivability.
It costs more money for a company to acquire a customer than to retain them, due to advertising and the expense of sales calls.
Like there are positive qualities from have good customer service, lacking in this department can bring negative outcomes to the business such as:
Rework; every error the business makes it costs money to rectify which slows the businesses cash flow