What Is Good Customer Service, and Why Should Companies Improve Theirs?

What is good customer service, and why should companies care? This article deals with this question and explains more about the best practices of customer service. 

What Defines Good Service? 

If you ask 15 people, “What is great customer service?” you’ll get 15 different answers. What makes for a great experience is subjective, so it’s surprisingly difficult to nail this subject down. That said, there are some basics that apply across the board, and this section will look at these in greater detail. 

Why Provide Excellent Customer Service?    

Companies now know how to answer “What is good customer service?” but are they willing to implement the best practices customer service demands? The following statistics underline the importance of improving service levels: 

• 68% of customers will spend more with companies that offer outstanding experiences. 
• 86% of customers will become brand ambassadors after an exceptional experience. 
• 93% of customers will buy from a company again if they receive outstanding service.
• A customer who qualifies as a net promoter has a lifetime value that’s 6 to 14 higher than one who’s a detractor. 
• It takes 12 good experiences to remedy one bad one. 
• 80% of customers will move to a competitor after a bad experience.

Companies have to up their game as customers are becoming less likely to forgive transgressions. 

What Is Good Customer Service  

Good customer service refers to the satisfactory level of support and assistance a company provides its customers with. While it may not reach the level of exceptional experiences associated with “great” customer service, it still meets and fulfills customers’ basic needs and expectations. 

Good customer service includes the following key aspects.

Responsiveness

Companies should promptly address customer inquiries, complaints, or requests. They should also acknowledge suggestions made during feedback and act on compliments to show customers they value their input. 

Knowledge

A team should understand a company’s products and be able to provide accurate information. They should undergo regular training to keep them up-to-date with product and industry advances and learn how to match the best solution for customers. 

Courtesy and Respect

Companies must treat customers with respect, patience, and courtesy at all times. If they operate outside their local area, they should take time to understand the cultures of people in other countries. 

Effective Communication

A business’ team should convey information and instructions to customers in a way that is easy to understand. Companies can improve understanding by providing instructions with the help of texts, videos, co-browsing sessions, and so on. 

Problem-Solving

Issues will appear from time to time, so businesses must be ready. They should train their team members to offer workable solutions to customers’ issues and work to resolve their questions effectively. 

Timeliness

A support team should complete tasks and address customer needs within reasonable timeframes. Companies can go as far as to have their teams sign service-level agreements so that they clearly understand what is expected of them. 

Consistency

Businesses should provide a consistent level of service quality across all customer touchpoints and channels. Customers should have a similar experience whether they order online or in-store. 

Empathy

Support consultants should show understanding and consideration for customers’ concerns and frustrations. Role-playing exercises can be a useful way for consultants to build empathy. 

Transparency

Companies should be upfront and honest about products, services, pricing, and any limitations or restrictions. Customers will be willing to make compromises if they know about them upfront. By being open about products and services, companies build trust. 

Follow-Up

Companies should follow up with customers to ensure their satisfaction or to provide additional assistance if needed.

In essence, each of these covers a basic level of service that customers expect from modern businesses. Therefore, it makes sense for businesses to set these as the basic minimum. 

Businesses that are successful in this area improve customer satisfaction, loyalty, and retention. 

What Is Great Customer Service?  

Great customer service refers to the exceptional level of support, assistance, and care provided by a business to its customers. It goes beyond meeting basic expectations and strives to exceed them by creating positive and memorable customer experiences. 

Great customer service involves a combination of factors and qualities that leave customers feeling valued, satisfied, and likely to return for future business. There are some overlaps with good service, but here, companies take things a step further: 

• Personalization: treating customers as individuals and tailoring interactions to their specific needs and preferences. This includes providing exclusive offers and marketing appropriate for specific clients. 
• Empathy: going beyond merely understanding and acknowledging customers’ emotions, concerns, and frustrations, to envisioning the solution that best suits them. In such cases, the customer’s needs take preference. 
• Responsiveness: companies go beyond promptly addressing customer inquiries, complaints, or requests for assistance, to proactively doing so. They may, for example, contact customers to explain how a product works before a customer realizes there’s an issue. 
• Knowledge: having well-informed and knowledgeable customer service representatives who can provide accurate information and solutions is the first step. Going beyond means having an understanding of competitors’ products and how their company’s offers measure up. 
• Problem-solving: proactively finding solutions to customers’ issues and going the extra mile to resolve their questions. Many companies empower their consultants to take actions that can improve customer experience. 
• Positive attitude: maintaining a positive and friendly demeanor in all interactions with customers, even those that are more challenging to deal with. 
• Simple, effective communication: clearly conveying information and instructions to customers, avoiding jargon or technical language.
• Empowering customers: giving customers self-help tools they need to resolve simple questions. This could be an extensive and easy-to-search knowledge base or some simple self-help options.
• Timeliness: completing tasks and addressing a customer’s needs within reasonable timeframes, preferably faster than they expect. 
• Listening to feedback: actively seeking and considering customer feedback to improve products, services, and overall customer experience. Also listening to a support team and other stakeholders in this regard. 
• Going above and beyond: empowering and encouraging team members to take extra steps a customer doesn’t expect with the aim of delighting them. 

Great customer service is not just a one-time occurrence but an ongoing commitment to excellence. It helps businesses build strong customer loyalty, positive word-of-mouth referrals, and a solid reputation in the market. Ultimately, great customer service contributes significantly to the success and growth of a business.

An Example of the Best Customer Service Experience 

What is great customer service in respect of the company’s target market? The best experience will differ depending on the type of customer. 

For example, people buying designer brands might expect a more personalized approach and more attention. Those shopping at a discount store like Target, on the other hand, might prefer self-help checkouts to improve queuing times. 

Either way, the best customer service experience is the one that leaves a lasting positive impression on a customer, exceeding their expectations and making them feel valued and satisfied. Here’s an example of what the best customer service experience might look like:

Scenario: a customer purchases a high-end laptop from an online electronics retailer.

• Personalized assistance: as soon as the customer completes the purchase, they receive a personalized email from the company’s customer service representative, addressing them by their name, and thanking them for choosing their product. The email might also contain a link to a tutorial and an offer of free training in their area. 
• Proactive communication: a day after placing the order, the customer receives another email confirming the order has been shipped, along with a tracking number. The company also informs the customer about a 24/7 customer service helpline for any inquiries or concerns and keeps them up to date on the delivery’s progress. 
• Fast delivery: the laptop arrives at the promised delivery date, and the packaging is in pristine condition. The company goes a step further and sets up a delivery window according to the customer’s convenience. The customer may reschedule if necessary. 
• Surprise gift: inside the box, the customer receives a gift in the form of a high-quality laptop sleeve along with a handwritten thank-you note from the customer service representative who assisted them.
• Follow-up call: a few days after receiving the laptop, the customer receives a follow-up call from the same customer service representative. The representative checks if the laptop is working well and if the customer has any questions or needs assistance with anything related to the product. The consultant might also suggest useful software tailored to the customer’s needs. 
• Technical support: a customer encounters a minor technical issue with the laptop after a week of use. They decide to call the 24/7 customer service helpline for assistance. A knowledgeable and friendly support agent answers their call promptly, patiently listens to the issue, and provides step-by-step instructions to resolve the issue. 
• Customer feedback: a company sends an email to the customer, asking for feedback on their overall experience with the product and customer service. The customer takes a few minutes to fill out the survey and provides positive feedback.
• Loyalty program: as a gesture of appreciation for the customer’s feedback and continued support, the company enrolls them into their loyalty program, offering exclusive benefits and discounts on future purchases.

In this example, the experience is characterized by personalized interactions, proactive communication, prompt and effective support, surprise gestures, and a genuine appreciation for the customer’s business. 

The company goes above and beyond to create a memorable and delightful experience, fostering a strong sense of loyalty and satisfaction in the customer and increasing the likelihood of repeat business and positive word-of-mouth referrals.

Best Practices Customer Service Experts Recommend

Now that companies can answer, “What is good customer service?” more definitively, it’s time to look at the best practices customer service professionals recommend.

Active Listening

Companies should train their consultants to actively listen to customers’ concerns and questions, without interrupting or thinking about what they’ll say next. By focusing on what a customer says, a consultant picks up cues that are easy to miss. 

While a customer may say one thing, the root issue may be something different. They may, for example, complain about bad customer service, because they feel that consultants should call them by their name. Even if the interaction is perfect in every other way, the customer will still feel disrespected. 

Through active listening, a consultant can determine the root cause of the issue and make a note on a customer’s file. 

Prompt Response

Companies must respond to customer inquiries and complaints as quickly as possible. This may involve setting up automated replies for acknowledgment and follow-up, but may also mean outsourcing support. Most customers today expect round-the-clock support. 

Personalization 

Businesses should treat customers as individuals and personalize interactions whenever possible. Addressing them by their names and tailoring solutions to their specific needs is a good way to take things a step further. Companies can also tailor their marketing efforts so that customers only receive information relevant to them. 

This makes customers feel that the company knows them well and respects their time. They are more likely to read marketing blasts as a result. 

Knowledgeable Staff

Companies must train their team to deal with customers and make them subject-matter experts when it comes to products and procedures. At the very least, consultants should have access to an extensive database of information so that any customer always receives a correct answer. 

Intelligent Technology Use

Businesses should be wary of rushing technological solutions their customers aren’t ready for yet. For example, they should be wary of implementing technology their customers either don’t want to or don’t know how to use. 

Some examples of technology that might prove useful include: 

• Customer Relationship Management (CRM) Systems: they can help businesses manage customer data, interactions, and feedback effectively. They enable customer service representatives to access customer information quickly, track communication history, and offer personalized support.
• Chatbots and Virtual Assistants: AI-powered chatbots and virtual assistants can handle routine customer inquiries and provide instant responses 24/7. They can quickly direct customers to relevant information or escalate complex issues to human agents, reducing response times and improving customer satisfaction.
• Self-Service Portals: these allow customers to find answers to common questions, access FAQs, and troubleshoot issues on their own. Providing self-service options reduces the burden on customer service teams and empowers customers to resolve problems independently.
• Omnichannel Support: customers expect seamless support across multiple channels, and technology makes this possible. Implementing technology that integrates phone, email, live chat, social media, and other communication platforms helps provide consistent service and enables customers to choose their preferred contact method.
• Voice Recognition and Speech Analytics: these technologies help in call centers by automatically routing calls to appropriate agents, identifying customer sentiment, and analyzing conversations to improve service quality and identify training needs.
• Video Chat and Co-Browsing: these technologies enable customer service representatives to have real-time face-to-face interactions with customers, allowing for more personalized and effective support.
• Predictive Analytics: predictive analytics use customer data to anticipate customer needs and behavior. Also, by integrating inventory management techniques, businesses can maintain real-time tracking of hardware and software assets, ensuring efficient allocation and proactive resolution of IT-related customer issues. This approach helps minimize downtime and enhances customer satisfaction.
• Social Media Monitoring and Management: social media platforms are crucial for customer interactions. Utilizing tools to monitor brand mentions, engage with customers, and address issues on social media can enhance customer service and reputation management.
• Customer Feedback and Survey Tools: gathering customer feedback through surveys and feedback forms helps businesses understand customer sentiments and areas for improvement.
• Augmented Reality (AR) and Virtual Reality (VR): in industries like retail or technical support, AR and VR technologies can offer interactive product demonstrations, virtual tours, and troubleshooting guides, enhancing the customer experience.
• AI-Powered Sentiment Analysis: AI can analyze customer feedback and sentiment across various channels, helping businesses identify patterns and areas of concern.

Change the Company Culture

Companies must start the changes at the top, with executives setting the example. It’s only if the changes are company-wide that they will take root. 

Positive Language

It is a good practice to use positive and polite language in all interactions. Support consultants should avoid using jargon or technical terms that may confuse customers. 

Another tip is to only apologize once for a mistake and then present the solution. Doing so focuses attention on the outcome rather than a mistake, making the customer experience more positive overall. 

Multichannel Support

Businesses should offer support through various channels like phone, email, live chat, and social media to accommodate different customer preferences. Doing so allows customers to reach out in ways they feel most comfortable with. It also allows a company to use simple tools like chatbots to handle easy queries. 

Consistency

Striving for consistency in service quality across all channels and representatives will allow customers to have a similar experience regardless of the contact point. Examples include using a common greeting whether a customer is on live chat, telephone, or in-store. 

Customer Feedback

Companies should actively seek customer feedback and use it to improve their products and services. Surveys, reviews, and feedback forms can be helpful tools. Take things one step further by asking open-ended questions and advising customers of the results and steps the company took to improve their product, service, or communication quality. 

Handle Complaints Gracefully

Complaints often sting, but they can be a useful way to improve service delivery. A customer complaint is an opportunity to mend the relationship, as many customers won’t bother to make contact in this manner. 

When dealing with dissatisfied customers, businesses should maintain a calm and professional demeanor. They should focus on finding a resolution and turning their negative experience into a positive one.

Set Realistic Expectations

Support teams should be transparent about what their products or services can deliver. They should also avoid making promises they cannot keep. If a company makes a mistake, its team has to own up to it and fix the issue before someone notices it. 

Customer Empowerment

Providing customers with self-service options and resources to help them find answers to common questions and troubleshoot minor issues independently will help businesses build a loyal customer base. While not all customers will use this channel, those who do will appreciate the ability to do so and will be eager to come back. 

Employee Empowerment

It’s also important to empower every team member to come up with creative solutions they can implement on the fly. The Hilton Hotel Group, for example, gives their team a small discretionary allowance to make the customer experience better.  

Training and Development

Companies should continuously invest in the training and development of their customer service team to enhance their skills and keep them updated on best practices. Training might include refreshers on product information or how to deal with customers. 

Reward Exceptional Service

Companies should recognize and reward team members who consistently deliver outstanding customer service to encourage others to follow suit. If a company makes a reward worthwhile, a team will be happy to improve its service.

Examples of rewards might include cash, time off, vouchers for shopping, paid trips, and anything else teammates would find worthwhile. 

Measure Performance

Companies should use metrics and data to evaluate the effectiveness of their customer service efforts. They can use artificial intelligence to collect data and draw useful insights. They can then identify areas for improvement and make data-driven decisions.

Use Customer Journey Mapping

Understanding the customer journey is integral to creating a consistent experience. Companies should ensure they fully map each contact point and make note of any bottlenecks or other issues. 

A company can then smooth the procedures to improve the user experience. Companies should perform regular reviews of the processes, especially as technology changes. 

Conclusion 

Knowing the answer to, “What is good customer service?” is the first step in improving the customer experience. Companies that wish to retain their competitive advantage can no longer settle for “good” service, they must improve their offerings. 

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