Customer service – how to do it right

In modern business, customer service is one of the most important factors for success. In order to maintain a good market position, it is necessary to constantly ensure the highest possible level of customer service.

From this article you will learn:

• What is customer service?
• What is included in customer service?
• What challenges does customer service face on a daily basis?
• What can be gained from efficient customer service?
• How to improve the quality of customer service?
• How do you measure the effectiveness of customer service?

Customer service – definition

Customer service refers to the process of providing support and service to people who use your company or organisation’s products or services. It aims to ensure customer satisfaction, solve their problems and build positive relationships. It is also vital to the success of a business – satisfied customers are more likely to use your company again and recommend it to others.

Today’s approach to customer service is often based on understanding and meeting individual needs, which is key to maintaining their loyalty and competitive advantage in the marketplace. Technology also allows you to communicate more efficiently and effectively with your audience and solve their problems.

Customer service is the set of activities and processes for providing satisfaction and support to customers before, during and after they purchase products or use services. This includes communication and interaction to solve problems, answer questions, provide information about products or services, and handle complaints and comments. The main objective is to build positive relationships with customers, increasing their satisfaction and loyalty to the brand or company.

Definition of customer service

Elements of customer service

Customer service is a complex process. One of its key aspects is communication. It should be clear, courteous and effective, as this enables customer problems to be resolved. Customer service representatives should have an in-depth knowledge of the company’s products or services. This will enable them to assist customers more competently and effectively.

Accessibility is another important element; customers should be able to easily contact your company by phone, email or social media. During the interaction, representatives should show courtesy and empathy, treating each customer individually and tailoring the approach to their needs and expectations.

Managing complaints and grievances effectively is equally key. This includes accepting responsibility for mistakes and taking steps to rectify them. Modern customer service often also includes an element of self-service, where customers have access to, for example, a knowledge base or FAQs, which allows them to solve some problems themselves.

Many companies are developing loyalty programmes and other initiatives that reward customers for their commitment and long-term relationship with the brand. All elements work together to provide a holistic approach to customer service. It should focus not only on solving current problems, but also on building positive relationships.

Customer service challenges

There are many challenges in customer service that companies need to understand and address in order to provide a high quality service. Solving them requires a strategic approach, investment in technology, staff training and continuous monitoring of the quality of customer service. The process must also adapt to changing customer expectations and market conditions. The most common challenges are:

• High expectations – customers often have very high expectations regarding speed, quality and level of service. Meeting them can be difficult, especially during busy periods.
• Diversity – dealing with a group of customers with different preferences, needs and levels of knowledge presents a challenge in adapting the approach and communication.
• Managing negative feedback – complaints and negative feedback are inevitable, but how your business responds to them is important. It should minimise the further spread of negativity.
• Maintaining continuity of service – providing a consistent quality of service regardless of the time of day, week or season is a challenge, especially with limited resources.
• Leveraging technology – implementing and optimising new technologies in customer service can be complex, but are nowadays essential to effective operations.
• Customer data management – protecting customer data and privacy is key, but also challenging in the face of changing regulations and likely hacking attacks.
• Internal staff training and development – maintaining and developing the skills of your customer service team can be a bit of a challenge, but is an essential investment in the growth of your business.
• Resolving complex issues – customers sometimes raise issues that are very complex and require a multi-step solution. Resolving these quickly and effectively can be a challenge.
• Personalising services – offering personalised services on a mass scale is difficult, but customers increasingly expect it.
• Language and cultural challenges – in a global economy, serving customers from different countries and cultures requires understanding and accommodating language and cultural differences.

Benefits of good customer service

Good customer service has many benefits for both your business and your customers. When they are satisfied with the service, there is an increased chance that they will remain loyal to your brand, which translates into longer relationships and a greater chance of repeat purchases. In addition to this, satisfied customers often recommend the company to their friends and family. As part of your customer service efforts, use referral marketing and get referrals from trusted people have a strong influence on purchasing decisions.

It is also worth remembering that with increased customer loyalty and recommendations, your business may see an increase in sales and revenue. It also reduces the likelihood that customers will leave for competitors.

Good customer service helps to build and maintain a positive brand image, which can attract new customers and differentiate your business from the competition. In today’s economy, which is full of similar products, excellent customer service can be a key factor in differentiating a company from its competitors.

Direct communication with customers allows you to gather valuable feedback that can be used to improve your products and services. Alongside this, it helps to detect and resolve problems early, which can prevent escalation to crisis levels that could damage a company’s image.

By resolving customer issues effectively and quickly, a company can avoid repeated complaints that require more resources to handle. It is also worth noting that employees who are part of a team that helps customers effectively often feel more satisfied and engaged in their work.

Ways to improve the quality of customer service

Improving customer service is crucial to the success of your business. Here are some ways that can help you achieve this:

Training for employees

Through regular training, employees not only acquire the necessary knowledge, but also develop skills that are invaluable in their daily interaction with customers. One of the key elements that should be developed during training is communication. Teaching employees how to communicate effectively with customers, not only in terms of the message, but also in terms of listening and understanding needs, is essential for building positive relationships.

Problem solving is another skill that employees should master. Training in this area should focus on methods for identifying problems, analysing situations and proposing effective solutions to the customer’s satisfaction. Empathy is also extremely important. Training should help employees to put themselves in the customer’s place and show understanding of the customer’s situation and emotions.

In addition, training should also include knowledge of the products or services offered by the company, so that employees can competently answer questions and advise customers. It is also worth introducing elements of stress management and techniques for dealing with difficult situations, so that employees are prepared for a variety of challenges.

Continuous improvement is equally important. Regular training should be complemented by systematic appraisals and feedback so that employees can continually develop their skills and adapt to the changing needs of customers.

Introducing multi-channel communication

The introduction of multi-channel communication (omnichannel) responds to modern customer expectations of speed and convenience of contact. The telephone is the classic channel, valued for its direct conversation. Email allows more detailed information to be sent without time pressure. Live chat on websites enables quick, real-time assistance. Social media is popular with younger audiences and enables relationship building. Mobile messaging is also worth considering. It is important to integrate different channels so that information is consistent, and to maintain a high quality of service on each.

Collecting and analysing customer feedback

Collecting feedback from customers is key to improving customer service. Surveys allow you to assess service quality and customer satisfaction. Ratings are a simple way to understand how a customer feels about a service or product. Reviews give a broader insight into the customer experience. Once this information has been collected, it should be analysed, looking for patterns and trends. Based on the analysis, the company should develop an action plan to improve the service and then inform customers of the changes, which builds trust.

Establishing clear procedures

When employees know how to handle different situations, they are able to act faster and more effectively, which translates into customer satisfaction. Standardising communication is one aspect worth paying attention to. By setting the right tone and style of communication, you can ensure that all employees present the company in a consistent manner.

Problem-solving procedures should be well defined. Employees should know how to identify customer problems quickly and what steps to take to resolve them. Putting in place procedures for handling complaints and returns is also important. Clear guidelines on how to deal with dissatisfied customers can help avoid escalation of problems and maintain good relations even in difficult situations.

Personalise service

When customers feel they are treated in a personal way, it increases their engagement and satisfaction. The first step in personalising service is capturing customer data, which includes collecting information such as names, purchase preferences, purchase history, and previous interactions with customer service.

Segmenting customers allows you to group them based on common characteristics or behaviours. It also allows the creation of personalised messages and product recommendations. These can also be based on the customer’s purchase history and preferences. Customising the experience on a website can also be part of personalisation.

Quick and personalised solutions to problems is another aspect. When a customer contacts support, it is useful to have access to their history and be able to quickly tailor a response or solution to their specific case. However, it is important to be mindful of data privacy and to be sure that the collection and use of information complies with current legislation.

Use of technology

Technologies such as customer relationship management (CRM) systems, chatbots and analytics tools play an important role in improving and streamlining customer service processes. Customer relationship management (CRM) systems provide a central repository of customer data, allowing for a better understanding of customer needs and behaviour. They integrate different communication channels and allow employees to quickly access customer information, which is particularly useful during face-to-face interactions.

Chatbots are programmes that simulate conversations with people, and can be used on websites, social media or communication applications. They can answer frequently asked questions, help with purchases and even solve simple problems. This allows customer service to be available 24/7, significantly improving the customer experience.

Analytical tools allow you to collect and analyse data on customer interactions. They can be used to identify trends, monitor customer satisfaction and measure the effectiveness of various initiatives. For example, analysing CRM data can help you understand which products or services are most popular with customers, as well as their communication preferences.

Integration of technology is equally important. Different tools and platforms should be linked together in a way that allows for a seamless flow of information. For example, integrating chatbots with a CRM system can allow information from conversations to be automatically stored in a customer profile.

Rapid response to requests

Nowadays, with information at their fingertips, customers expect quick responses and solutions. Increasing resource availability can be one way to achieve this. If your customer service team is sufficiently large and prepared, it will deal effectively with a large number of requests.

The use of technology is another important aspect. Chatbots can provide instant answers to frequently asked questions, and CRM systems can help you access information more quickly. The optimisation of in-house processes is also important. Reviewing and adjusting customer service processes to make them more efficient can significantly reduce response times.

Creating a knowledge base and frequently asked questions (FAQs) on the company’s website can also be effective. Giving customers the ability to solve simple problems themselves and get answers to their questions reduces the burden on the service team, allowing them to focus on more complex queries.

Monitoring and measuring response times is the last but equally important element. You should regularly review how long it takes to respond to customers and set targets for improving this indicator.

Flexibility in approach

Sometimes standard procedures can be insufficient or inadequate, so flexibility is important. Listening to the customer is the first step. You need to be open to information and signals from customers in order to understand their needs and expectations. A personalised approach is a key feature in such situations. Looking for solutions that best meet their needs can help build loyalty and a positive image of the company.

Decision-making authority for employees is important in enabling flexible responses to unique situations. Employees should be equipped with the right authority and knowledge to make decisions on the spot, without having to constantly consult senior management. It is equally important to analyse the consequences. Deviation from standard procedures should be thought through in terms of financial, operational and long-term consequences. Sometimes a concession to one customer can have negative consequences for others or for the company itself.

Analysing procedures and improving is essential to minimise the need for deviations. It is worth evaluating and updating procedures on a regular basis to best meet customer needs and minimise the need for modifications.

Provide self-service options

Allowing customers to resolve simple issues themselves is an effective strategy that has many benefits for both customers and the customer service team. FAQs (frequently asked questions) are one tool that can be used. By providing answers to common questions, customers can find quick answers to their problems without having to contact the customer service team.

Knowledge bases give access to detailed information and instructions on products or services. By providing clear step-by-step instructions, customers can solve simple problems themselves, without the need to involve the service team. Also, tutorials and instructional materials are valuable sources of information for customers. They can contain examples, tips and advice on how to use products or services in an optimal way.

Motivating and rewarding employees

Introducing incentive and reward systems for employees who demonstrate high quality customer service is an effective way to increase engagement and continuously improve service standards. Recognising achievements is a key element in incentive systems. Rewarding employees for their efforts and high quality customer service reinforces a sense of satisfaction and motivates them to continue improving.

Here, fair and transparent evaluation criteria are important. Employees should know on what basis they are being evaluated and what they need to achieve to receive a reward. This motivates them to take specific action and sets clear expectations. By regularly monitoring performance and assessing progress, employees’ progress can be tracked and areas for improvement can be identified.

Financial rewards can be one element of an incentive system. Awarding bonuses or raises to high-performing employees in customer service is an effective way to recognise their efforts. Intangible rewards are also important. This can include public recognition, internal praise or promotion opportunities. Introducing these rewards can build a bond with an employee and motivate them to continue excelling.

Transparency and accountability

Being open and accountable when communicating with customers is critical to building trust and long-term relationships with customers. Especially in situations where something goes wrong, taking responsibility and communicating effectively can negate negative consequences and increase customer loyalty.

A quick response is crucial. When a customer reports a problem or dissatisfaction, a response must be given as quickly as possible. This shows that the company is aware of the situation and places importance on taking customer problems seriously. Apologising and accepting responsibility is another important step. If something has gone wrong, the company representative should apologise and accept responsibility for the situation. This shows that the company recognises its mistakes and is prepared to take corrective action.

Employees should explain the situation to the customer in a clear and understandable way, provide information on how to rectify the problem or next steps, and explain what actions are being taken to avoid similar incidents in the future. Monitoring progress and keeping the customer informed are important for long-term problems or difficult situations. Customers appreciate regular updates on progress in resolving a problem and expect to be kept informed.

Methods for measuring customer service performance

The first step is to set measurable and achievable customer service targets. Measuring customer service effectiveness is key to identifying areas for improvement and monitoring progress in service quality. Combining different measurement methods and analysing data from different perspectives can help to provide a more complete picture of customer service effectiveness and point to directions for further development. The following methods are generally used:

• Customer Satisfaction Index (CSAT) – a simple method that asks customers how satisfied they are with a particular aspect of service or product, usually on a scale of 1 to 10.
• Net Promoter Score (NPS) – measures the extent to which customers are willing to recommend your business to their friends or family. The question is usually “To what extent are you willing to recommend our company/business to a friend or family member?” and answers are measured on a scale of 0 to 10.
• Customer Effort Score (CES) – measures how much effort a customer had to put in to solve a problem or get an answer to a question. This is usually assessed on a scale, for example from ‘very low’ to ‘very high’ effort.
• Analysis of feedback and comments – reviewing and analysing feedback left on social media, websites or other platforms can help you understand what customers think of the service.
• Response time indicators – measuring how quickly the customer service team responds to requests and how long it takes to resolve an issue is an important performance indicator.
• First Contact Resolution (FCR) rate – measures what percentage of customer requests are resolved first time, without further interaction.
• Customer retention rate – checking whether customers are still using the company’s services can be an indicator of customer service satisfaction.
• Complaint trend analysis – can help identify areas that need attention.
• Mystery shopping – using mystery shoppers posing as regular customers to assess the quality of customer service can provide valuable information about the actual customer experience.
• Cost of service analysis – can help to understand whether investments in service are delivering the desired results.