Introduction

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In today’s business world, intense competition in many industries is eroding market share, turnover and profits. A variety of external risks, including fluctuations in the economy, social change, technological advancements, and new legislation, to mention a few, add pressure in the quest to remain profitable or for some, to merely survive. Internal risks, including low levels of productivity, conflict in the workplace, structural changes, a lack of motivation and inefficiencies are some of the issues that need to be dealt with on a regular basis.

For many years, industry leaders advocated improvements in the quality of service as one of the most important measures to maintain and increase market share.

A consistent theme shared by those businesses thriving in this competitive marketplace is a strategic emphasis on enhancing revenue by making quality, innovation, and customer responsiveness the central values of their corporate cultures. Research has shown that companies that have successfully carried out this differentiation charge more for their products, grow market share faster, and have a better return on sales than competitors who do not. On the other hand, businesses that neglect the service part are carrying the needlessly high costs of bad service through the active word of mouth of dissatisfied customers and increasingly expensive advertising and marketing to attract new customers.

Customer service is the provision of service to customers before, during and after a purchase or receiving service.

Finding new customers is much more expensive than keeping existing ones. Customer service is more than just keeping customers happy. It is about revenue, because a lost customer means lost revenue and an unhappy customer can damage your reputation.

In a competitive marketplace it makes sense to aim to provide superior service. Customers base their purchasing decisions on the service they receive, not just price, quality, and availability.

Word-of-mouth referral is the most effective form of promotion. It costs nothing and carries a lot of credibility as it is based on personal experience.

Satisfied customers not only tend to return to buy again from you but are also likely to talk positively about your business to others. A bad customer service experience is shared with as many as 10 other people who are likely to tell another 10. So, a negative reputation will spread quickly.

Superior customer service is service that exceeds your customers' expectations and will make your business stand out from your competitors'. To be effective, customer service must be consistently good in every part of your business. From the moment the customer thinks of purchasing, right through to the final sale, there are opportunities for the business to add superior customer service to the process.