In the world of small business, customer service is not just a department, it's an attitude. It's the way you interact with your customers, the way you handle their complaints, and the way you make them feel valued. It's a critical aspect of any business, but it's especially important for small businesses, which often rely on a loyal customer base for their survival.
As such, understanding the terminology associated with customer service in small business operations is crucial for anyone involved in this sector. Whether you're a business owner, a manager, or an employee, having a solid grasp of these terms can help you provide better service to your customers, improve your business operations, and ultimately, drive your business towards success.
Customer Service
Customer service refers to the assistance and advice provided by a company to those people who buy or use its products or services. In the context of small businesses, customer service often involves a more personal touch, as business owners and employees have the opportunity to get to know their customers on a more personal level.
Good customer service can create loyal customers for life who are willing to refer your business to friends, family, and colleagues. Providing this type of excellent customer service can keep your clients coming back and it can also help your business stand out from the competition.
Customer Satisfaction
Customer satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is often part of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.
For small businesses, customer satisfaction is crucial. A satisfied customer is likely to come back, refer others to your business, and speak positively about your business in reviews and on social media. On the other hand, a dissatisfied customer can do significant damage to your business's reputation.
Customer Retention
Customer retention refers to the ability of a company or product to retain its customers over some specified period. High customer retention means customers of the product or business tend to return to, continue to buy or in some other way not defect to another product or business, or to non-use entirely.
For small businesses, customer retention can be even more important than customer acquisition. Acquiring a new customer can cost five times more than retaining an existing customer. Increasing customer retention by 5% can increase profits from 25-95%. The success rate of selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is 5-20%.
Customer Experience
Customer experience (CX) is your customers’ perception of how your company treats them. These perceptions affect their behaviors and build memories and feelings to drive their loyalty. In other words, if they like you and continue to like you, they are going to do business with you and recommend you to others.
You might think you’re providing the best customer service experience but if your customers perceive it as bad, then it’s bad. If they have a problem with your product or service, your team must resolve it. How you go about this is a large part of how they perceive their experience.
Customer Journey
The customer journey is the complete sum of experiences that customers go through when interacting with your company and brand. Instead of looking at just a part of a transaction or experience, the customer journey documents the full experience of being a customer.
Understanding the customer journey is about learning what customers experience from the moment they begin considering a purchase, and then working to make the journey toward buying a product or service as simple, clear, and efficient as possible.
Customer Touchpoints
Customer touchpoints are your brand’s points of customer contact, from start to finish. For example, customers may find your business online or in an ad, see ratings and reviews, visit your website, shop at your retail store, or contact your customer service. Each of these touchpoints shapes the customer’s impression of your brand.
Understanding these touchpoints can help you improve your customer service and overall customer experience. By identifying and improving these touchpoints, you can create a better experience for your customers, which can lead to increased customer satisfaction and loyalty.
Customer Feedback
Customer feedback is information provided by clients about whether they are satisfied or dissatisfied with a product or service and about general experience they had with a company. Their opinion is a resource for improving customer experience and adjusting your actions to their needs.
This information can be collected with different kinds of surveys (like email, website, SMS surveys), with the help of various types of feedback forms or it can be also gathered from social media, review sites or comparison sites.
Customer Reviews
Customer reviews are a form of customer feedback on electronic commerce and online shopping sites. There, customers can comment about a product or service and give a score a rating. Online shopper's feedback or reviews are mostly prevalent at shopping sites like eBay, Amazon, Zappos, and Overstock.
Customer reviews are an important part of building a company’s online reputation. They can provide valuable feedback for the company, and they can also help other customers make informed purchasing decisions.
Net Promoter Score (NPS)
The Net Promoter Score is an index ranging from -100 to 100 that measures the willingness of customers to recommend a company's products or services to others. It is used as a proxy for gauging the customer's overall satisfaction with a company's product or service and the customer's loyalty to the brand.
Companies can use the NPS to track their customers' loyalty and satisfaction over time, identify areas for improvement, and compare their performance with that of their competitors. A high NPS indicates that a company is doing well in terms of customer satisfaction and loyalty, while a low NPS suggests that improvements are needed.
Customer Service Channels
Customer service channels are the methods through which customers can reach out to a company for assistance. These can include phone, email, social media, live chat, and more. Each channel has its own advantages and disadvantages, and the best choice will depend on the specific needs and preferences of the customer.
For small businesses, it's important to offer multiple customer service channels. This not only provides customers with more options, but it also allows the business to reach a wider audience and cater to different customer preferences.
Phone Support
Phone support is a traditional customer service channel that involves customers calling a company for assistance. This can be a highly effective channel for resolving complex issues, as it allows for real-time communication and the ability to ask follow-up questions.
However, phone support can also be time-consuming and costly for businesses, especially if they receive a high volume of calls. It's also not always the most convenient option for customers, who may prefer to seek assistance at their own pace and on their own time.
Email Support
Email support is a customer service channel that involves customers sending an email to a company for assistance. This can be a convenient option for customers, as it allows them to seek assistance at any time and without the need for a phone call.
However, email support can also be slow, as it often involves a delay between when the customer sends the email and when they receive a response. It's also not always the best option for resolving complex issues, as it doesn't allow for real-time communication or follow-up questions.
Social Media Support
Social media support is a customer service channel that involves customers reaching out to a company on social media for assistance. This can be a highly effective channel for reaching younger audiences, who often prefer to use social media over traditional channels.
However, social media support can also be challenging for businesses, as it requires them to monitor multiple platforms and respond quickly to customer inquiries. It also requires them to manage their online reputation, as negative comments or reviews can be visible to the public.
Customer Service Best Practices
Customer service best practices are guidelines that businesses follow to provide the best possible service to their customers. These can include things like responding quickly to customer inquiries, resolving issues in a timely manner, and going above and beyond to exceed customer expectations.
For small businesses, following customer service best practices can be a key factor in their success. By providing excellent customer service, they can build a loyal customer base, differentiate themselves from their competitors, and drive their business towards success.
Active Listening
Active listening is a communication technique that involves fully focusing on, understanding, and responding to a speaker. In the context of customer service, active listening can help representatives better understand a customer's needs, concerns, or complaints, and provide more effective assistance.
Active listening involves not only hearing the words that the customer is saying, but also understanding the complete message that they are trying to convey. This includes paying attention to the customer's emotions, body language, and tone of voice, as well as the content of their words.
Empathy
Empathy is the ability to understand and share the feelings of another. In the context of customer service, empathy can help representatives connect with customers on a personal level, and show them that they genuinely care about their needs and concerns.
Empathy involves not only understanding the customer's feelings, but also validating them and expressing genuine concern. This can help to build trust and rapport with the customer, and make them feel valued and appreciated.
Problem-Solving
Problem-solving is the process of finding solutions to difficult or complex issues. In the context of customer service, problem-solving can help representatives resolve customer issues in a timely and effective manner.
Problem-solving involves identifying the problem, generating possible solutions, evaluating these solutions, and implementing the best one. It requires critical thinking, creativity, and decision-making skills, as well as a thorough understanding of the company's products or services.
Follow-Up
Follow-up is the process of checking in with a customer after a service interaction to ensure that their issue has been resolved and that they are satisfied with the service they received. This can help to build customer loyalty, as it shows the customer that the company cares about their satisfaction and is committed to providing excellent service.
Follow-up can involve a phone call, email, or even a handwritten note. The key is to make the customer feel valued and appreciated, and to ensure that they are satisfied with the resolution of their issue.
