Customer service is an essential aspect of any business, regardless of its size. Small businesses, in particular, have a unique opportunity to build strong relationships with their customers by providing excellent customer service. 

Customer service is essential for small businesses because it can have a significant impact on customer satisfaction, retention, and overall success. 

My Business Entrepreneurship Facilitator Chris Mooney said it was important to manage the service expectation against the value proposition.  

Each customer has a different perception of what customer service means to them. To provide good customer service, you'll need to know the needs of the customer and how to fulfil those needs.

Find out how your customers expect you to meet their needs. The expected level of service may vary between consumer groups, industries and marketplaces.

“The first thing to consider is what is the actual service expectation for the business,” he said.

“It is about the service expectation, which is part of the value proposition I set for the customers that are buying from my business. Now if I have set that customer service expectation, that means I have also communicated that to everybody in my supply chain, from suppliers, staff and customers.”

“Most importantly, once people understand what the customer service expectation is, you need to consider if you are measuring yourself against that, not just the whole company but also from an individual client level.”

On the supply side, businesses equally can’t deliver good service if they haven’t got the same expectations of the suppliers, according to Mr Mooney.

“So, you better be measuring their performance because if you don’t get that bit right, you can’t pass it through to your customers. The supply side problems will then become your customer’s problems, and they’ll become your problems very quickly,” he said.

“It is important to set the customer service standard, deliver against that standard and subsequently measure against that standard.”

It will be important to listen to customer feedback, whether it is positive or negative, according to Mr Mooney. Use feedback to improve your products or services and enhance the customer experience. Make it easy for customers to provide feedback through various communication channels. 

Businesses will need to understand what their customers consider to be good customer service and take the time to find out customers' expectations.

It will also be important to follow up on both positive and negative feedback you receive, monitor for positive and negative comments and ensure that you consider customer service in all aspects of your business.’

By focusing on customer service, small businesses can build strong relationships with their customers, increase customer loyalty, and ultimately, drive profitability.   

“In turn, that will feed back into the referrals and feedback into repeat business. The key message is don’t be afraid to ask your customers how you’re doing. The biggest failure you’ll have is not asking how they are doing, and you’ll only find out when you realise they’re not buying from you anymore,” Mr Mooney said.