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There are many benefits to a business of providing good customer service:

• customer loyalty
• improved reputation
• employee satisfaction

Customer loyalty

If customers receive a good quality service they will be more likely to return. This will lead to increased sales and profits. It would also mean that customers do not take their business to competitors.

Customer loyalty would make it easier for a business to promote new products as the customer is already loyal to the brand.

Improved reputation

Good customer service will improve a company’s reputation. Customers who have received a good service will be more likely to recommend the company to family and friends.

A good reputation may attract new customers meaning a larger market share for the company. It would also allow for higher prices to be charged.

Employee satisfaction

Customers who are satisfied are less likely to complain. Having fewer complaints to deal with contributes to a business having a more motivated work force.

If a company has a good reputation and operates with a low level of customer complaints then that business is likely to attract a higher calibre of employee.

Poor customer service

There are also consequences of a business failing to provide good customer service:

• decrease in profits
• bad reputation
• loss of market share
• loss of competitive edge
• low staffmorale