What is customer service?

Customer service explained

Customer service refers to the assistance and support provided by your business or organization to your customers before, during, and after a purchase or interaction. It covers a range of activities and interactions aimed at addressing customer inquiries, resolving issues, and ensuring a positive experience throughout the customer journey.

Why is customer service important?

Effective customer service is a cornerstone of successful businesses, as it fosters customer satisfaction, loyalty, and advocacy. Good customer service can be the key differentiator for your business among your competitors. Businesses that prioritize exceptional customer service stand out by retaining customers and building a positive reputation that contributes to long-term success. Bad customer service can lead to negative reviews and a loss of customers.

Types of customer service

Phone calls

One of the most traditional types of customer service is also one of the most popular. For many organizations, phone interactions are the primary way customers can reach them. You’ve no doubt experienced calling a toll-free number, joining a queue, or navigating a phone tree to reach a person in a customer support role. 

Text messaging

If you’re like most people, you rely on text messaging far more than phone calls in your daily interactions. Customers are increasingly expecting companies to include this contact method in their services, though only about half currently do so. Businesses that embrace texting for customer service can place themselves closer to the front of the pack and gain their customers’ support. 

Email

Like with texting, email communication is helpful for customers, especially those with busy or demanding schedules, as they can choose the time and place to send and respond. Adding personalized greetings, using empathy and transparency when describing the returns process, for example, and following up to ensure the customer’s satisfaction are all ways your business can offer great customer service. 

Social media

Businesses have increasingly embraced social channels to interact with customers, and those who excel at service respond quickly and usually with a more casual or humorous touch than with other forms of communication. This means a business needs to devote resources to keep up with social media mentions and requests, to truly make an impact in this area. 

Live chat/chatbots

Let’s face it, nobody likes to wait in long queue lines on the phone. Live chat and chatbots both offer quick, on-site help and are often faster at resolving questions or issues. Like with social media, live chat requires constant supervision, so many companies have embraced chatbots, who can perform the role 24/7. Even in situations where chatbots can’t provide the service the customer is looking for, they can often gather information from the customer that human agents can act upon later. 

Self service customer support

Customers with basic internet skills can take advantage of self-service options like knowledge bases, where companies publish and collect articles, blogs, manuals, and videos that explain common issues or how to use certain products or services. This can help cut down the number of calls your business receives (and the resources needed to answer them) and caters to customers who want to get a problem fixed without dealing with a live person. 

In person

Brick-and-mortar stores in food and retail industries have always relied upon in-person customer service, from approaching customers proactively on the sales floor to ringing them up at the cash register. Sometimes a simple smile and a thank you, or a genuine “How are you?” can lift a customer’s mood and make a lasting impression.

Benefits of providing quality customer service

For businesses of all sizes to gain and maintain happy customers, it’s important to place good customer service at the frontline of customer communication before, during, and after a sale. Let’s look a four real-world benefits of delivering good customer service:

• Increased brand awareness/customer loyalty: Satisfied customers are more likely to share their positive experiences with friends, and family, and on social media platforms. Also, customers who feel valued, heard, and supported are more likely to remain loyal to your brand, make repeat purchases, and even advocate for your brand among their networks. 

• Reselling/upselling opportunities: When customers experience great service, they gain a positive perception of your brand, trust your products or services, and are more likely to engage in further transactions. Satisfied customers are also more willing to make repeat purchases and become loyal advocates for your brand, leading to ongoing reselling opportunities through referrals and positive reviews. 

• Future referrals: Good experiences with knowledgeable, responsive, and empathetic customer service representatives create a lasting impression and build trust and credibility. Satisfied customers are more likely to share their positive experiences with others through word-of-mouth recommendations, social media posts, or online reviews. These referrals not only bring in new customers but also tend to have a higher conversion rate and longer-term loyalty, as they come with a trusted endorsement.

• Differentiate yourself from competitors: By providing great service experiences, you can create a unique value proposition that sets your business apart from competitors. When customers receive personalized attention, prompt responses, and effective solutions to their inquiries or issues, they develop a positive perception of your brand and are more likely to choose it over competitors. Consistently delivering high-quality customer service also builds trust, loyalty, and emotional connections with customers, making it harder for competitors to replicate or imitate.

7 skills for providing customer service

Customer-facing employees need to develop or possess the right mix of good customer service skills to be successful in their roles. Without these hard and soft skills among your team members, your organization could risk losing customers—and revenue—as a result. Here are some important customer service skills to prioritize when hiring and promoting:

1. Communication

Communication enables clear understanding, effective problem-solving, and positive interactions. It allows representatives of your organization to convey information clearly, listen actively to customer needs, and provide timely and relevant responses, ultimately enhancing the overall customer experience.

2. Empathy

Empathy allows your employees to understand and relate to the emotions, concerns, and perspectives of customers. By showing empathy, representatives can build trust, establish rapport, and create a more personalized and supportive experience, leading to higher customer satisfaction and loyalty.

3. Product knowledge

Strong product knowledge enables representatives to answer inquiries accurately, recommend appropriate solutions, and address customer concerns effectively. Having in-depth knowledge of products or services instills confidence in customers and builds their trust in your brand. 

4. A bias toward action

A bias toward action empowers representatives to proactively address customer needs, resolve issues promptly, and prevent potential problems from escalating. Taking initiative and demonstrating a willingness to go above and beyond for customers not only enhances their experience but also showcases your organization's commitment to delivering exceptional service.

5. Patience

Patience enables representatives to remain calm, listen attentively, and empathize with customers, especially during challenging or emotionally charged interactions. Demonstrating patience helps build rapport, defuse tense situations, and find mutually satisfactory solutions.

6. Collaboration

Collaboration promotes teamwork, knowledge-sharing, and cross-functional support within your organization. By collaborating effectively with colleagues from different departments, representatives can access expertise, resources, and solutions that enhance their ability to address customer inquiries, resolve complex issues, and deliver seamless experiences across touchpoints.

7. Time management

Time management ensures representatives can prioritize tasks, allocate resources effectively, and respond to customer inquiries or issues in a timely manner. Efficient time management allows them to handle a higher volume of customer interactions without compromising quality, leading to faster resolutions and improved satisfaction.

Challenges in customer service

Treating your customers well, and successfully handling the customer service challenges that inhibit your support team will keep customers returning to your business. Here are some common challenges companies face. (In the next section, we’ll cover some solutions.)

Upset customers

Dealing with upset customers is a common challenge for businesses, but it presents an opportunity to turn a negative experience into a positive one. Upset customers may be frustrated due to product issues, billing errors, service disruptions, or other reasons. Avoid being defensive or argumentative, as this can escalate the situation further. Instead, remain calm, patient, and professional throughout the interaction.

Meeting expectations

Customers today have high standards and demand personalized, efficient, and seamless experiences across all touchpoints. This makes understanding and managing customer expectations a challenge. Businesses need strategies to help set and meet expectations to ensure greater customer satisfaction. 

Troubleshooting

Troubleshooting can be a complex and challenging task, often involving diagnosing technical issues, addressing customer complaints, and finding timely solutions. One challenge is accurately identifying the root cause of the problem, which may require technical expertise, thorough investigation, and collaboration with internal teams or external partners. Effective troubleshooting also requires strong communication skills to interact with customers professionally, gather relevant information, and manage expectations throughout the resolution process. What’s more, troubleshooting often needs to be done under time constraints, especially for critical issues or service disruptions, adding pressure to the process.

Customer service best practices

Challenges to good customer service are real and formidable, though your business can take proactive steps to reduce their number and complications. 

Ensure all team members are prepared for customer needs

Your customer service team members are your front line and the most visible representation of your brand. Ensure they’re prepared by:

• Providing comprehensive training and onboarding programs to new team members, covering product knowledge, service protocols, and communication skills. 

• Offering ongoing development opportunities to keep team members updated on industry trends, customer expectations, and best practices in customer service.

• Fostering a customer-centric culture within the organization, emphasizing the importance of empathy, active listening, and problem-solving skills in addressing customer needs effectively. 

Provide proper resources to the customer service team

You can empower customer service teams to deliver exceptional service experiences and build strong customer relationships by investing in the right resources and support:

• Provide access to tools and technology that streamline customer interactions and enhance efficiency, such as CRM systems, knowledge bases, ticketing systems, and communication platforms. 

• Foster a supportive and collaborative work environment that encourages teamwork, knowledge-sharing, and continuous improvement. 

Ensure customer service is accessible to all customers

By embracing inclusivity and accessibility in customer service efforts, you can create positive experiences for all of your customers.

• Offer multiple communication channels, such as phone support, email, live chat, social media, and self-service options, to accommodate different customer preferences and accessibility requirements. 

• Ensure customer service representatives are trained in cultural competency, empathy, and active listening to effectively engage with customers from various backgrounds and experiences. 

• Provide multilingual support and translation services for customers who may prefer to communicate in languages other than the primary language of the business.

• Prioritize accessibility by making customer service platforms and resources compliant with accessibility standards, such as providing options for text-to-speech, screen readers, and keyboard navigation. 

Utilize tools and software

By leveraging tools and software solutions effectively, your business can create seamless, personalized, and memorable customer experiences that drive satisfaction, loyalty, and advocacy.

• Implement a robust CRM (Customer Relationship Management) system that centralizes customer data, interactions, and preferences, enabling personalized communication and targeted marketing efforts. 

• Use customer feedback and survey tools to gather insights, measure satisfaction, and identify areas for improvement in products or services. 

• Incorporate communication platforms such as live chat, chatbots, and social media monitoring tools to provide real-time support and engage with customers across multiple channels. 

• Use analytics and reporting tools to track key metrics, analyze trends, and make data-driven decisions that optimize the customer journey. 

• Invest in automation tools and workflows that streamline processes, reduce response times, and enhance consistency in service delivery.

Customer service tools and software

With tech advancements continuously evolving how companies handle customer service, there are an increasing number of tools available. 

• Chatbots can provide automated self-service to your customers. When used across channels and touchpoints, they can dramatically reduce the number of conversations your live team members must field each day. 

• Unified dashboards can give your customer service team members a holistic view of conversations across channels.

• Artificial intelligence technologies can suggest common solutions to frequent problems, recommend actions your agents can take to enhance customer support and analyze data for better productivity.

• Advanced ticketing solutions can allow your departments to collaborate quickly and easily to resolve issues, track actions taken, and ensure nothing is forgotten. 

Check out the top customer service software in 2024

Unleash exceptional customer service with powerful CX software

In today's competitive landscape, exceptional customer service (CX) is no longer a differentiator, it's a necessity.  Boost your customer satisfaction, loyalty, and brand reputation by delivering exceptional experiences at every touchpoint.

Invest in the right CX software and empower your team to consistently provide outstanding service.

4 Examples of customer service

For companies striving to stand out in today’s hyper-competitive market, proven examples of excellent customer service can provide valuable insight into what works and why it matters.

That being said, let’s explore some specific instances of businesses going above and beyond the call of duty to satisfy customer needs:

Offering multiple support channels

Contemporary customers expect convenience and flexibility when reaching out for support, whether through phone calls, emails, social media, live chat, or self-service options. By providing multiple communication channels, businesses ensure that individuals can select the support method that best suits their unique needs.

For example, Zappos, a well-known online shoe and clothing retailer, excels at offering various communication platforms to cater to its diverse customer base. In addition to traditional phone and email support, Zappos provides live chat on its website and maintains active customer service on social media channels like Twitter and Facebook.

Providing timely responses

Timely responses show that a business values its customers and is committed to resolving their concerns efficiently. This, in turn, builds trust and enhances the overall customer experience, as individuals feel confident that their needs will be met promptly.

Amazon serves as a prime example of an organization that prioritizes prompt customer service. Highly regarded for its efficient support, the company offers multiple ways for individuals to receive help, including live chat, phone support, and an extensive self-service help center. Amazon’s commitment to fast resolutions is reflected in its ‘Alexa’ offering, with which individuals can instantly access certain support options through voice commands, such as tracking packages or checking the status of an order.

Personalize your interactions

When companies tailor their communication to each customer’s unique needs, it shows a level of attentiveness that goes beyond generic service. Personalization can include addressing customers by name, recalling past interactions, or offering suggestions based on previous purchases. This approach not only improves customer satisfaction, but also builds loyalty, as customers are more likely to return to a business that treats them as individuals rather than just another transaction.

Consider Netflix for instance, who customizes the content recommendations for users based on their viewing history, preferences, and ratings. This personalization extends to its customer service interactions as well, where its support team has access to each individual’s personal information and account activity, allowing them to provide specific, tailored advice.

Proactively reach out to customers

By initiating contact, whether through follow-up emails, reminders, or notifications, organizations can prevent small problems from escalating and demonstrate that they genuinely care about the CX. Proactive outreach also helps to build a positive reputation, as individuals are more likely to view a brand favorably when it goes out of its way to ensure they’re informed and satisfied.

For example, Apple has long excelled at preemptively supporting its customers. After purchasing an Apple product, customers typically receive follow-up emails with setup guidance, tips for maximizing their device's potential, and troubleshooting resources. The company also offers the Genius Bar, a service designed to help users with technical issues before they occur by offering maintenance tips and software updates.