Excellent Customer Service: A Summary of its Value in Business Transactions - Essay Sample

Introduction

Customer services are standard practices in today's business transactions and are essential for a successful business transaction. This paper aims to summarize the value of excellent customer service.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Due to the reluctance of businesses in providing CRM and sales data, most research is based on surveys, and the new trend of online shopping has helped create a platform for analyzing interactions between services representatives and customers. By using data from twitter we used the two industries that generate the highest number of complaints the airlines and wireless carriers. Customers remember the service interactions, and they readily treat services well.

Using more than 400,000 tweets from the five major airlines' top four wireless carriers in the U.S. from March 2015 to April 2016, we comprehensively reviewed customer interactions, including complaints, questions, and comments (Huang, Mitchell, Dibner, Ruttenberg &Tripp 2018). We established contact with the customer for up to six months and invited them for a brief survey. Customers who interacted with customer services were more likely to pay more for the brand or choose the brand more often from a comparably-priced consideration set, compared to those who did not have any interaction at all. In one such instance, customers who received any response were willing to pay an average of nine dollars more for an airline ticket in the future. The results replicated themselves in carrier services too. Customers who received a response improved the chances of recommending the service to others over the six months showing the possibility of being a permanent trend.

As the findings suggest that responding to customers is crucial even to the most upset customers helps in diffuse the customer anger towards the brand despite, in most instances, the possibility of addressing the customer-specific grievances being almost impossible to solve. In the study, receiving any response at all increased the willingness of the customer to pay more later, even in dire instances (Huang, Mitchell, Dibner, Ruttenberg & Tripp 2018). This behavior trend was more significant in carrier services whereby customers who did not receive any response at all did not change the consumption in later days. In contrast, those who did get a response spend an average of seven more dollars. Receiving a positive comment is a way of establishing brand loyalists, and a reply goes a long way in creating future transactions.

Even if there is a response, an immediate response is the be the most effective way of capturing more value. A reply within five minutes had the most impact on customers; in airlines, customers were more likely to spend twenty dollars more and seventeen dollars more in wireless carrier services monthly. While this research was limited to twitter, the response time shows a huge difference in generating customer goodwill, and this should be relative across all response channels. These patterns held even though customer issues remained unresolved. These teamed with other psychology research shows the dislike of the uncertainty of asking for something and hearing nothing back. Customers showed improved overall habits when a personal connection is established. For example, typing a few more characters personalizes the message.

Conclusion

In conclusion, the aim of this paper to summarize the value of good customer service has been showed and expressed in a short and equally understandable way as the original article and the benefits better illustrated.

References

Huang, W., Mitchell, J., Dibner, C., Ruttenberg, A. and Tripp, A., 2018. How Customer Service Can Turn Angry Customers into Loyal Ones. Harvard Business Review, 16.