How customer service affects the success of an organization

Businesses typically have several primary goals. Most businesses work to sell a product or a service to create a profit while fulfilling their primary mission statement. Businesses which trade stocks publicly also have many shareholders to please by increasing the size and value of the organisation. Other businesses may have social or humanitarian concerns. Central to the success of these goals is good customer service and customer relationship management.

Customer service refers to how a business interacts with its customers and their needs. Customers who know exactly what they are looking for and how they are going to pay for it may not need much help locating a product or understanding a service, but they still expect good service when completing a transaction. Other customers need advice, information and updates in order to make their decisions or understand more about the business. Some customers want to hear about discounts or inquire about business operations. Customer service deals with all these issues and more while trying to impress the customer and draw more of them in.

Loyalty is one of the primary rewards for good customer service. A loyal customer is one who goes to a business, has a good experience there and then continues to use that business for future needs because of the quality of service. Most businesses aim to create a large pool of loyal customers since these consumers represent a dependable source of revenue and tend to stick with the company even in trying economic times.

Customer service is also a very easy way to market the business brand and spread the word about its services. Some of the most effective marketing is done by simple word of mouth. A customer who has a good experience can tell other consumers about it, creating positive buzz for the business and making new customers. This word of mouth marketing can be more effective than any advertising campaign by the business.

Many organisations have a reputation for excellent customer service. Organizations which create this reputation make it part of their identity and seek to impress both employees in the company and others outside of it with customer service techniques and approaches. This type of strategy creates a positive effect among investors, who like to see a company become successful by working with customers. This makes it more likely that investors will be interested in the company and contribute funds.

Quality customer service requires a great amount of training. Employees, both new and experienced, need to be taught how to interact with customers, what things to say, and how to respond to angry or troubled customers. This type of training encourages employees to be understanding, open-minded and industrious. This often has a beneficial effect on the company as a whole.