Importance of good customer service and meeting customer expectations

There are many factors that contribute to providing good customer service:

  • knowledgeable, helpful and friendly staff
  • meeting all legal requirements
  • quick delivery
  • efficient service
  • excellent post-sales service and support
  • good product availability

Good customer service is important, as customers who are satisfied with their purchase and the customer service they have received are more likely to become regular customers. When customers post recommendations online or speak positively about a business to people they know, this helps the business to build a good reputation and a positive brand image.

Differentiation is the process of making a product or service different from others so as to make it more appealing to a particular target market, eg smartphone manufacturers often differentiate their products by offering faster processing speeds and a longer battery life. Excellent customer service is a way to differentiate a product from the competition and provide a competitive advantage, which allows businesses to charge a premium price. This will also lead to increased sales via repeat purchases.

Having good customer service has a number of advantages:

  • increasing customer loyalty
  • ability to increase prices
  • increasing customer spending
  • improving reputation
  • attracting new customers