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The Importance of Customer Service

Guest post by: Drew Stevens Ph.D.

Article Overview: Gain insights of how to use customer service as a branding and marketing differentiator.

The Importance of Customer Service

The odds of your business surviving five years are 50-50 according to David Birch, former head of a research firm specializing in studying small business data. (Isen 2007) There are many reasons why a business will fail. Much research is available to denote which factors are the most important, however, it appears that most business fail because they lack focus on the organization’s most vital asset - customers.

Solo practitioners begin a business for two reasons; money and passion. Business professionals desire to take their passion and make money from it, and there is little harm in this. There is no better way to enjoy your time on earth than to do the thing that you enjoy.

However, with passion there is a need for focus. Presently with the cacophony of noise due to the Internet and social media resources, consumers are overwhelmed with messages. Consumers today require differentiation to denote whom to shop and whom to avoid. Unfortunately the Internet’s ubiquity hinders variety so that only option remaining the builds brand and business success is customer service.

Customer service is simply the organizational culture and processes that entrepreneurs create to ensure allure. Consumer decisions are driven by emotion. Service must be enculturated into the organizations so all staff become dependent on the client. This is an important construct; there is little difference from one retailer to the next or one restaurant to the next with one exception- customer service. When treated correctly, customers inform others of their experience helping to manifest the organizations brand and announce it to others. No marketing tactic in the IMC process is as cost effective as a word of mouth.

When customers believe and trust their vendor they tell others helping to create brand differentiation. Exemplars include Apple whose retail outlets are the busiest of any mall and Zappos.com whose unblemished customer service helps helped to brand to proliferate.

If there is little belief in customer service think again. According to both Dun and Bradstreet and the Small Business Administration, businesses with fewer than 20 employees have only a 37% chance of surviving four years. Customer service can provide the life raft of success if used correctly. In reviewing the success statistics, would you rather be a follower or a leader?

©2010. Drew Stevens PhD. All Rights Reserved.

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Re: Service Or Product? - I agree with starting a Service-based Business in the economy. Here is what I think is critical: 1. Researching that your Service business has a market. 2. Marketing the Service with as much leverage as possible. 3. Product-izing the Service (aka Package Expert Knowledge). This will only help elevate you as "the" expert in your niche and make you accessible to people in different price points.
Marketers, Learn What You Can, Cannot Control Online - I am a Customer Service Representative in my company so naturally every once and a while I get angry customers fed up with my companies policies. Oh! I remember one day on my way home from school I was walking by a gas station and there was a man with a huge cardboard sign outside a small car mechanic business telling people not to go there because they are crooks. I am pretty sure they lost tons of business. I know my mama kept away from there after I told her about it. I found it pretty funny. I wonder if the guy got arrested or fined though....
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Re: Two Useful Books To Help You Focus On The CLIENT - Hi David, To add to your thread, I'd like to recommend Jonathan Tisch's "Chocolates On The Pillow Aren't Enough: Reinventing The Customer Experience". Tisch's book includes content on "Welcoming Customers", "The New Art of Customization", "The Challenges of Customer Diversity" and "Offering Something Extra to Your Customers" to name a few.
Who Said Twitter Doesn't Work...? - Last month, the BBC World Service programme, The Strand, featured 21 year-old Icelandic pianist/composer Olafur Arnalds. Arnalds achieved extraordinary success through his internet-led project to compose 7 tunes in 7 days, post them on his website and then post links to it via TWITTER. As a result his website got thousands of visitors eager to listen to his music, catapulting him to fame and bringing his music to the attention of the BBC, who featured an interview with him on the World Service programme, The Strand! So who says Twitter doesn't work? (HINT: It does help if you have something uniquely your own that other people want to get hold of...)


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