4 Ways Customer Service Impacts a Business

4 Reasons Why Customer Service Matters

What is a Customer?

1.   In the broad sense of defining what a customer is, a customer is a person with whom a business exchanges value. Customers can be identified using various labels, but all are consistent with the exchange of value. External customers are the individuals who are outside of the organization (consumers); Internal customers are most likely employees or people within the business.


What are the attitudes and orientations that define a customer relationship?

2.     Some of the attitudes and orientations that define a customer relationship are bolstered by a perspective of generosity and trustworthiness towards a company‚Äôs customers. A business can gain an intimacy with customers by overdelivering beyond the need or necessity. A company that can exchange value with its customers in an approach that displays compassion, care and transparency can prove to be a factor that strengthens the trust the customer establishes with the business. Employees who approach their interaction with customers in a genuinely happy manner help to build partner-like relationships between customer and company.


How are Customer Service Skills valuable?

3.     Customer service skills are valuable in multiple ways and can add value to a not for profit organization, or organizations that have little to no competitors. But the most important way that customer service skills add value to any type of organization is by retaining customers through effective customer service. The cost of a customer deciding to no longer do business with a company because they feel underappreciated as a customer can be greater than that one customer. The Ripple effects of a customer telling a friend, family member, co-worker, or neighbor about their poor experience or disappointment with a company can bankrupt a company with how much it costs a company to attract and replace a customer they already had.


What kind of impact does Customer Service have on Word of Mouth marketing & advertising?

4.     Word of mouth advertising and marketing work so effectively because it helps cut the cost of getting new customers and replacing those lost. Some of the largest expenses companies have on their profit and loss statements are related to attracting and converting potential customers into loyal consumers. In an online e-commerce business, word of mouth can move through social networks at speeds unthought of 25 years ago (Timm, 2014).