Strategic Impact of Customer Service on the Organisation

Lecturer Broadcast

Click here to view an explanation about customer service and strategic impact.

Klik hier om na ‘n verduideliking van kliëntediens en strategiese impak te luister.

Explanation by lecturer Johan Kleingeld from Edge Consulting, an expert on customer service.

A consistent, theme shared by those businesses thriving in this competitive marketplace, is a strategic emphasis on enhancing revenue by making quality, innovative, and customer responsiveness the central values of their corporate cultures. Research has shown that companies that have successfully accomplished 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 component are carrying the needlessly high costs of bad service through the active word-of-mouth action 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 are much more expensive than retaining existing ones. Customer service is more than just keeping customers happy. It's 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 from you again but are also likely to talk positively about your business to others. A bad customer service experience is shared with around 10 other people, who are likely to tell another 10. So, a negative experience 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.