How do you define the importance of customer service in business?


Quick Answer

Define the importance of customer service in business by creating measurable metrics that incorporate the duties of the customer service department and tying them into other success metrics for the company to see quantifiable results of positive customer service. This can include brand awareness, converting paid customers and retaining the loyalty of existing customers.

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Full Answer

Many companies struggle to determine and define the importance of their customer service departments because they do not have clear and direct revenue sources but instead provide passive and more complex benefits that vary depending on the nature of the companies and their industries. One method to rectify this is to implement different tracking methods for key customer service metrics and connect them to other major areas of the company. For example, an online gaming company may track the number of complaint tickets in a day and compare it to daily revenue to identify correlations between customer unhappiness and low revenue.

Measuring these metrics allows the company to understand how the work of the customer service department affects customer behaviors. Similarly, it may also look at the purchasing habits of customers after complaining to the service department, identifying when a positive interaction results in a future purchase from that customer. Some companies may also track the customer service interactions of high profile clients to learn about how the departments keep those customers happy and spending money.

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