Reasons Why Customer Service is Important?
March 3, 2024
6 min read

In the fast-paced and highly competitive business world, we live in today, it’s no longer enough to simply offer a good product or service. To truly stand out from the crowd, businesses need to go above and beyond by providing exceptional customer service. Why customer service is important? Because customer service is the secret ingredient that can make or break a business. It’s the intangible factor that leaves a lasting impression on people’s minds and hearts. 

Moreover, 81 percent of consumers say a positive customer service experience increases the chances of them making another purchase.

Therefore, when customers interact with your business, they don’t just remember what they bought; they remember how they were treated. 

Did your team go the extra mile to solve their problems? 

Did they feel valued and heard?

These are the things that stick with customers long after the transaction is over.

Why Customer Service is Important at all?

When you prioritize customer service, you’re not just ensuring satisfaction at the moment; you’re creating a lasting connection that sets you apart from the sea of similarities. By delivering exceptional service, you tell your customers, ‘We value you, and we’re here to exceed your expectations.’

When customers feel genuinely cared for, they’re more likely to become brand advocates, spreading the word about your exceptional service to their friends, family, and social networks. This organic promotion can be far more powerful than any marketing campaign, attracting new customers and boosting your reputation.

Benefits of Customer Service

Based on a study, it was found that 36 percent of consumers express a preference for waiting to engage with a live customer service representative when they require assistance.

Therefore, exceptional customer service gives you a competitive advantage in a crowded marketplace. It becomes your unique selling proposition that sets you apart from competitors who may offer similar products or services. When faced with choices, customers gravitate toward businesses that consistently go above and beyond to ensure their satisfaction. By making customer service a top priority, you’re not just surviving in the market; you’re thriving.

So, let’s have a look at some of the advantages that ultimately prove why customer service is important and has become the need of the hour. Here are some of the advantages of customer service.

Increase in Revenue

The failure and success of businesses are measured based on the revenue of the company. What matters the most is the profitability, regardless of whether it appears on day one or after a decade. The primary reason why customer service is important in a business is that it associates with revenue. Reportedly, 84% of businesses working to enhance customer service recorded an increase in revenue.

When it comes to business success, revenue growth is a crucial indicator of performance. While there are various strategies to increase revenue, exceptional customer service has proven to be a potent driver in this pursuit.

It significantly increases the likelihood of repeat purchases and customer retention. When customers have a positive experience with a company’s support team, they develop trust and confidence in the brand. This trust translates into a higher probability of customers returning to make additional purchases, contributing to recurring revenue.

Customer Retention

The most unobstructed path to business success is customer retention. Making current customers satisfied results in added steady revenue and more reliable predictions. When you up your game in not just attracting consumers, but retaining them, then it sets a firm foundation for your whole business.

As per reports, 75% of people would return to a business without standing service. Good customer service is the reason why several customers stick to a single company. In today’s world, beyond product satisfaction or value, customer contentment prevails supreme. Undoubtedly, your uncommon product or service may weave customers in, but customer service holds them.

When customers receive consistent, personalized, and efficient service, they are more inclined to remain loyal to the brand. Loyal customers not only continue to choose the company’s products or services but also stay retained for a longer period.

Promote Branding

Reputation plays a very vital role in a business. It draws investors, customers, employees, and partnerships. When you seek to improve the reputation of your business, then you must start with exceptional customer service.

Reportedly, after getting a positive customer experience, 69% of people would promote/recommend the company to others. In a market full of innumerable options, a recommendation from a friend or an acquaintance often helps in easing the tedious task.

Out-of-the-box social media campaigns and paid ads have their place in the market, but nothing surpasses the oldest trick in the book. Exceptional customer service leads to delighted customers who talk about your service or product with future customers.

Enhance Customer Satisfaction

These days, consumers aren’t the only ones who have alternatives but good employees are too in demand in any economy. Particularly at startups, employee comfort goes beyond a paycheck.

Reportedly, highly involved employees achieve a 10% improvement in customer ratings. Businesses must focus on creating a mission-driven organization where employees return every day to find new techniques to please the customer. Businesses must also try to give their team a chance to be a part of something larger than themselves.

Businesses must let their employees know that how much each customer depends on their work. The intangible sense of having a goal motivates employees way above what free food ever could.

Brand Awareness Towers

Positive consumer experiences play an enormous role in brand recognition, as they often lead to word-of-mouth advertising. As per reports, 55% of consumers become a customer of a business because of its reputation for exceptional customer service.

Give a positive experience for existing consumers and watch them rant about your brand/business. Businesses can take the help of analytics to track awareness by mapping everything from social media sentiment to online reviews to recommendation potential. When businesses constitute a brand awareness strategy encompassing customer loyalty, they will see sustainable and authentic growth.

Valuable Customer Feedback and Insights

Interacting with customers through customer service channels provide invaluable feedback and insights for businesses. By listening to customers’ concerns, suggestions, and feedback, companies can identify are as for improvement, uncover trends, and make informed business decisions.

This feedback loop enables businesses to continuously enhance their products, services, and overall customer experience, ensuring they stay relevant and responsive to evolving customer needs. But how does it make any difference for businesses?

Well, genuine feedback and suggestions help businesses to modify their product or services according to their target audience preferences. This, in turn, increases customer loyalty and keeps the customers hooked to your services for a longer time.

Competitive Advantage

In today’s crowded marketplace, where customers have numerous options to choose from, exceptional customer service can provide a substantial competitive advantage. Businesses that prioritize customer service differentiate themselves from competitors and create a unique selling proposition.

Moreover, customers often choose companies that offer outstanding support, even if the products or services are similar, as they feel confident that their needs will be met.

Therefore, in a marketplace saturated with options, customers are likelier to choose a company they trust will prioritize their needs and provide exceptional support. By making customer service a top priority, a business can position itself as the preferred choice for customers, giving it a competitive advantage over rivals who may not prioritize the same level of customer care.

Customer Base Expansion

Exceptional customer service plays a critical role in expanding a business’s customer base. When existing customers have positive experiences and receive outstanding support, they are more likely to refer friends, family, and acquaintances to the company.

Additionally, when customers have positive experiences and feel valued, they become brand advocates, willingly sharing their satisfaction with others. These referrals can result in new customers who are more likely to trust and engage with the business based on positive recommendations.

All of this directly works in the favor of businesses by increasing their customer base and enhancing their overall revenue. That’s why polite and helpful conversations with your customers can do wonders for your business.

Types of Customer Service Models

Customer service models are frameworks that organizations use to provide effective support and assistance to their customers. These models outline the strategies, processes, and approaches employed to meet customer needs and enhance their overall experience.

Companies employ different strategies to cater to the diverse needs of their customers. So, let’s explore 4 common customer service models: Tech Touch, Low Touch, Mid Touch, and High Touch. Each model offers unique approaches to delivering exceptional service based on the level of human interaction and technology involved.

  1. Tech Touch
  2. Low Touch
  3. Mid Touch
  4. High Touch

Tech Touch

The Tech Touch customer service model leverages technology to provide efficient and self-service solutions to customers. It focuses on empowering customers with the tools and resources they need to resolve their issues independently. Self-help portals, knowledge bases, FAQs, and interactive tutorials are some common examples of this model. By investing in robust technology platforms and resources, companies can ensure that customers can find answers and solutions quickly and conveniently, without relying on direct human assistance.

Low Touch

The Low Touch customer service model strikes a balance between self-service and human assistance. It involves minimal human interaction but still provides a personalized touch when necessary. Common channels used in this model include email, live chat, or automated chatbots. Companies employing the Low Touch model focus on efficiency and responsiveness, aiming to address customer queries and concerns promptly. By implementing automated systems and personalized responses, they streamline interactions while maintaining a human touch when required.

Mid Touch

The Mid Touch customer service model emphasizes human interaction while incorporating some self-service elements. It caters to customers who value a more personal touch and seek assistance beyond what self-help resources can offer. Companies employing the Mid Touch model often rely on phone support, video calls, or live chat with dedicated customer service representatives. These channels allow customers to interact with knowledgeable agents who can provide tailored solutions and guidance. This model fosters a deeper level of engagement, allowing customers to build rapport with the company.

High Touch

The High Touch customer service model places significant emphasis on personalized, one-on-one interactions. It is tailored to customers with complex needs or premium service expectations. Companies employing the High Touch model prioritize direct human contact, often assigning dedicated account managers or customer success representatives to individual customers. This model aims to build strong relationships, providing proactive assistance, and personalized support. Regular check-ins, on-site visits, and tailored solutions are common in the High Touch model.

By understanding these models, companies can align their strategies to deliver exceptional service experiences and enhance their workflow.

Consumer Service Factors

Customer service is an essential aspect of any successful business, as it directly impacts customer satisfaction and loyalty. To provide exceptional customer service, several factors come into play. Let’s explore these crucial elements that contribute to a remarkable customer service experience.

  1. Prompt Responsiveness
  2. Clear Communication
  3. Empathy and Understanding
  4. Active Listening
  5. Knowledge and Expertise
  6. Personalization
  7. Problem Resolution
  8. Professionalism and Courtesy
  9. Consistency Across Channels

Prompt Responsiveness

Customers appreciate quick and efficient responses to their inquiries, whether it’s through phone calls, emails, or live chats. Timely communication demonstrates respect for their time and urgency in addressing their needs.

Clear Communication

Effective communication involves active listening and using clear, concise language to ensure that customers fully understand the information being conveyed. Avoiding jargon or technical terms that might confuse them helps build rapport and fosters better understanding.

Empathy and Understanding

A customer-centric approach requires empathy toward customers’ concerns and challenges. Understanding their perspective and showing genuine care builds trust and reassures them that their needs are being heard and prioritized.

Active Listening

Once customers engage with a company’s customer service team, active listening becomes paramount. Representatives attentively listen to customers, allowing them to fully articulate their concerns or questions. This shows respect and empathy, helping to build trust and rapport. Taking comprehensive notes during interactions aids in understanding the customer’s situation and ensures accurate documentation for future reference.

Knowledge and Expertise

Customers expect assistance from knowledgeable and competent customer service representatives who possess a deep understanding of the product or service. Staff members should receive comprehensive training to handle various queries and provide accurate information to customers.


Treating customers as individuals rather than just another number can significantly enhance their experience. Personalization involves addressing customers by name, understanding their preferences, and tailoring solutions to their specific needs. This approach fosters a sense of importance and makes customers feel valued.

Problem Resolution

Promptly addressing and resolving customer issues is crucial. This requires a proactive approach, actively seeking solutions, and keeping customers informed throughout the process. Customers appreciate being updated on the progress of their concerns and receiving timely solutions to their problems.

Professionalism and Courtesy

Maintaining professionalism in all customer interactions is essential. Polite and respectful language, along with a positive and friendly demeanor, creates a welcoming atmosphere that leaves a lasting impression. Treating customers with courtesy builds a strong foundation for a long-lasting relationship.

Consistency Across Channels

With the prevalence of multiple communication channels, it is crucial to maintain consistency in customer service across all platforms. Customers should receive the same level of service, regardless of whether they engage through phone calls, emails, social media, or in-person interactions.

Proven Customer Service Strategies

According to research conducted by Microsoft Dynamics, customer service plays a significant role in customers’ purchasing decisions, with a remarkable 90% considering it important when choosing a product. 

Additionally, an alarming 91% of customers express their reluctance to choose a particular product again after encountering a negative customer service experience.

However, we still have some promising news for you. 

Despite initial setbacks, a considerable 78% of consumers are willing to forgive and give your brand another chance if you deliver exceptional customer service. This highlights the immense value and potential for businesses to turn around a negative customer experience through proactive and outstanding service.

So, let’s have a look at some proven customer service strategies that can take your business to new heights exponentially.

Cultivate a Customer-Centric Culture

Customer service should be ingrained in your company’s DNA. Foster a culture that places customers at the center of every decision and action. Encourage empathy, active listening, and a genuine desire to solve problems. Train your employees to prioritize customer satisfaction and empower them to make decisions that benefit customers.

Personalizing Experience

Collect and utilize customer data to personalize interactions and anticipate their needs. Address customers by name, remember their preferences, and tailor your service accordingly. Personalization shows customers that you value their business and creates a sense of loyalty.

Clear and Effective Communication

Communication is the foundation of great customer service. So, it’s essential to ensure two-way communication for better understanding. Clearly convey information, respond promptly to inquiries, and provide updates on the status of customer requests. Train your staff to communicate effectively, using a friendly and professional tone across all channels.

Proactive Problem-Solving

Don’t wait for customers to come to you with issues. Be proactive in identifying potential problems and addressing them before they escalate. Implement customer feedback systems to gather insights and promptly resolve any concerns. Anticipate customer needs and provide proactive solutions, offering suggestions or alternatives that enhance their experience.

Empowerment and Ownership

Empower your employees to take ownership of customer issues and resolve them effectively. Encourage a sense of ownership, accountability, and pride in delivering exceptional service. When employees feel empowered, they can confidently address customer concerns and create positive experiences.

Continuous Improvement

Embrace a culture of continuous improvement in your customer service strategy. Regularly review and analyze customer feedback, metrics, and industry trends to identify areas for enhancement. Implement measures to address pain points, streamline processes, and stay ahead of customer expectations. Actively seek feedback and use it to refine your approach, ensuring that your customer service evolves with changing needs.

Remember, customer service is an ongoing journey, and it requires consistent dedication and effort. By implementing these strategies, you can build strong customer relationships, differentiate your brand, and create a reputation for exceptional service.

Final Words

Businesses must focus their support efforts on amusing their customers, and they can expect to notice gains in customer advocacy, retention, and as a result their increased sales revenue. The most undervalued asset in businesses is customer service. If you or your business can establish its worth, and get your team on the platform to harness its power, its success affects every level of your business.


What are the 7 qualities of good customer service?

The seven qualities of good customer service include empathy, responsiveness, effective communication, knowledge, adaptability, patience, and a focus on problem-solving.

What are the benefits of customer satisfaction?

The benefits of customer satisfaction are increased customer loyalty, positive word-of-mouth referrals, improved brand reputation, higher customer retention rates, and a competitive edge in the market.

What are the 5 types of customer value?

The five types of customer value are-  

1. Functional value (meeting basic needs)

2. Emotional value (creating positive emotions)

3. Social value (enhancing social status)

4. Epistemic value (providing knowledge or information)

5. Conditional value (offering exclusive or unique benefits)

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Vinay Krishna Gupta
(Co-Founder & CEO, Antino)
An alumnus of IIT Kharagpur, with experience in working across various industries like Information Technology, Automobile, Education, E-Commerce, Travel, etc. Well-versed in leading software development teams focused primarily on iOS & Backend development.