Good Customer Service: Definition, Examples, and Tips

Customer service is the backbone of every business. Satisfied customers become loyal customers that spend money and keep businesses afloat. Customers' experiences with a business help them form opinions about the brand that they may share with others.

The increase of social media and review websites have made it easier to learn about businesses. Customers can now take to Facebook, Twitter, and other social media platforms to talk about their experiences and how satisfied they are—or not. 

What is customer service?

Customer service is a team that helps customers solve problems they encounter with a business's products or services. As a customer service agent, you may help a customer before or after they complete a purchase. Some duties may include:

• Asking and answering a customer’s questions

• Suggesting products or services to customers

• Finding solutions for customers

• Interacting with customers face to face 

• Providing remote support through multiple channels, such as live chat or email

• Responding to questions and complaints

• Following up with customers to ensure they’re pleased with the purchase

• Processing orders

• Updating records

Types of customer service

Technology has made it possible to serve customers in many ways. Businesses often implement multiple methods of customer service so consumers can choose the one that works for them. Traditional walk-in customer service at brick and mortar stores are still thriving, with sales representatives creating a more personalized experience with customers. 

However, companies have expanded customer service options to include other means of communication. This allows them to assist customers when it's convenient for them. These options include:

• Phone: A number of customers prefer speaking to someone over the phone when they have a problem to solve. This is especially true for individuals who have complex problems or don't feel comfortable using technology.

• Email: When you receive a complaint or concern in writing, you have more time to resolve the issue and respond. Another advantage of email is having a discussion if necessary.

• Live chat: Businesses that offer live chat can provide immediate customer feedback, which can be less time-consuming than phone calls. It also gives the customer the ability to work on other projects while waiting for a representative to chat with them. This can be through an online chat function on the company’s website or through SMS text messaging.

• Social media: If you have the staff to monitor various social media channels, you can publicly and privately respond to inquiries and complaints. Publically-shared solutions allow others to see the exchange and how your business interacts with consumers.

• Interactive voice support: Automated telephone systems take the place of customer service agents for common questions. This lets customers find answers to frequently asked questions that don't require a response from a person.

• Online forums: Many companies have dedicated forums for customers’ concerns and feedback. customer service agents can respond to common questions on this forum and interact with customers.

Why is good customer service important?

Good customer service is important because most customers return to businesses that treat them well. Keeping customers costs less than attracting new ones. Researchers at HubSpot found that 65 per cent of sales come from existing customers, so it is more profitable for companies to devote time and money to retaining customers [1]. They, in turn, tell others about the service they received and those people may try new places when they hear good things. In this way, customer service directly affects your bottom line.

A company with good customer service may also notice additional benefits throughout the organization. These benefits include the following:

• Better alignment of brand and messaging

• Greater customer loyalty

• Higher revenue

• Increased leads and conversions

• Satisfied employees

• Improved brand reputation

Top customer service skills

When working with the public, it’s important to communicate effectively and knowledgeably. Speaking with confidence about the products or services offered and having answers to anticipated questions adds to a positive customer experience. Successful customer service personnel usually have a common set of skills that helps them positively interact with customers which may include:

• Adaptability

• Communication

• Empathy

• Listening

• Patience

• Problem-solving

• Information handling

• Business or finance skills

• Time management

Examples of good customer service

Good customer service is prompt, solves a problem, is easy to access, and is sensitive to the customer's needs. For example, self-service options like online FAQ sections let customers get answers to questions about business hours, return options, and shipping without waiting in a phone queue during regular business hours.

Tech giant Apple has a reputation for offering exceptional customer service. Not only do customers have access to personalized support portals at any time, but they also prioritize the relationship between the customer and the company. customer service agents have been known to go above and beyond to help customers fix their devices, and Apple has many policies in place to offer trade-ins, replacements, and extended return policies for customers. 

The Ritz-Carlton hotel group famously allows employees at all levels of the company to spend up to nearly $2,700CAD to support guests. One customer shared that an employee sent him the laptop charger he left behind in the room along with a personalized note. Another employee mailed a child's stuffed animal along with a photo album of the toy enjoying the hotel's amenities.

Customer service jobs

You can find customer service jobs in almost every industry. You can usually begin working as a customer service agent with a secondary school diploma and some on-the-job training. For some positions, a college diploma in business administration or a related field may be desired. If you enjoy working with customers in this capacity, you may move on to supervisory roles. Here is a list of manager roles and its Canadian annual salary: 

• Customer service agents: $38,645 [2]

• Customer service manager: $57,476 [3]

• Customer success manager: $69,333 [4]

• Customer care manager: $60,900[5]

*Note:  Salary data is sourced from Glassdoor and is accurate as of March 2023.

Next steps

Learning what customers want and how to interact with them is essential to successful customer service. Whether you're new to the field or want to brush up on the basics, consider taking Customer Service Fundamentals from Knowledge Accelerators on Coursera. If you already work in a call centre, you may find Telephone Language from Georgia Tech helpful for learning and practicing effective English communication techniques. You can find these courses, as well as Specializations and Professional Certificates on Coursera.