Customer Service in Business (AQA GCSE Business)
Revision Note
Methods of Customer Service
Customer service includes a businesses actions and behaviours experienced by customers before, during and after their purchase
Good customer service involves meeting clients' needs and keeping them happy
It can be provided in a variety of ways
How Businesses Provide good Customer Service
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Pre-purchase information |
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In-store support |
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Business premises |
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After-sales service |
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Quality products |
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Communication |
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Safety |
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Convenience |
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Reliability |
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The Benefits of good Customer Service
Providing good customer service can be beneficial for a business for several reasons
Diagram: The Benefits of Good Customer Service
Good customer service leads to repeat sales, a good reputation, improved employee morale, competitive advantage and the ability to compete
Repeat sales
It persuades people to buy time and again and increase their average spend from a business with whom they have enjoyed a good experience, boosting revenue
Reputation
It enhances a businesses reputation and increases the chance of word-of-mouth promotion
Customers tell others about how well a business has taken care of them, resulting in additional sales through free promotion
Ability to compete
Small businesses that may be unable to compete with larger rivals on price may be able to maintain sales by offering good customer service
Customers are often willing to pay a premium price for good customer service, increasing profitability
Competitive advantage
Providing excellent customer service can set a business apart from its rivals, creating a valuable competitive advantage that can help smaller businesses increase their market share
Employee morale is likely to be high in businesses with a good reputation for customer service, leading to greater efficiency and productivity
Attitudes such as respect for others, kindness, and going the extra mile are aspects in which they can have pride
The Dangers of poor Customer Service
Failing to provide good customer service can cause significant problems for a business, including:
Unhappy customers are likely to take their business elsewhere, especially in competitive markets where there are many alternatives, reducing revenue
They can easily share negative experiences online through reviews, social media, etc, tarnishing the business's reputation
Poor service erodes customer loyalty over time, making it more difficult to retain existing customers without expensive price promotions, increasing costs
Customer complaints about poor service can overwhelm employees, affecting their motivation and productivity
Providing replacements, dealing with customer returns and offering compensation also increase costs
Examiner Tip
Remember, no business wants to provide poor customer service. Look for clues in the case study to understand why customer service may not be meeting customer expectations. Your recommendations need to refer specifically to these issues.
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