Customer service definition, best practices, and more

Tag along as we break down how excellent customer service has become a key competitive differentiator in an increasingly saturated global marketplace.

With the proliferation of the internet and ecommerce companies, customer service has become increasingly important to buyers in choosing who they’ll do business with. And it’s not just us saying that. Studies have shown that 85% of consumers are willing to go out of their way to shop with a brand that offers superior service, while another 96% say it’s an important factor in whether or not they’ll continue to remain loyal to a business.

Thus, organizations must allocate their resources accordingly, sparing no time, effort, or expense when it comes to optimizing these initiatives. After all, as they say, “customer is king,” and the customer is saying that they demand an exceptional service experience.

Today, we’ll dive into what delivering great customer service involves, define customer service, how to set your support agents up for success, and some best practices that can help your team perfect its approach.

What is customer service?

Customer service refers to the support provided by a business to its customers before, during, and after they make a purchase or interact with an offering. It encompasses various interactions, such as answering inquiries, resolving issues, offering guidance, and ensuring that individuals feel valued throughout their entire experience with the company. 

Exceptional customer service goes beyond merely responding to customer concerns; it focuses on creating positive experiences that build long-term relationships. Organizations that invest in support initiatives aim to foster loyalty and trust, which can lead to repeat business, positive word-of-mouth referrals, and a stronger brand reputation. 

Why is customer service important?

It’s essential that modern businesses consistently deliver excellent customer service, as it directly impacts customer satisfaction, loyalty, and retention. Satisfied customers are more likely to become repeat buyers and recommend a company to others, helping to grow the customer base through positive word-of-mouth exposure. In an increasingly competitive marketplace, where products and services are often similar, standout support can be the defining factor that sets an organization apart from alternatives.

Moreover, customer service plays a vital role in shaping a brand's reputation. In today’s digital age, a single negative experience can spread quickly, damaging a company's public image. On the other hand, positive customer service interactions can enhance a business’s credibility and create loyal advocates. Studies suggest a direct correlation between an organization’s reputation and customer trust, as 95% of individuals say they’re more likely to rely upon a corporation with an outstanding reputation.

Why is customer service important?

It’s essential that modern businesses consistently deliver excellent customer service, as it directly impacts customer satisfaction, loyalty, and retention. Satisfied customers are more likely to become repeat buyers and recommend a company to others, helping to grow the customer base through positive word-of-mouth exposure. In an increasingly competitive marketplace, where products and services are often similar, standout support can be the defining factor that sets an organization apart from alternatives.

Moreover, customer service plays a vital role in shaping a brand's reputation. In today’s digital age, a single negative experience can spread quickly, damaging a company's public image. On the other hand, positive customer service interactions can enhance a business’s credibility and create loyal advocates. Studies suggest a direct correlation between an organization’s reputation and customer trust, as 95% of individuals say they’re more likely to rely upon a corporation with an outstanding reputation.

Benefits of optimizing customer service

Optimizing customer service is no longer just a way to handle inquiries; it has become a critical driver of overall business success as well. As consumer expectations continue to rise, companies that commit to refining their support strategies stand to reap significant rewards.

Expenditures in fine-tuning these efforts often lead to an immediate return on investment (ROI) in several different ways, including:

• Increased customer satisfaction: Providing quick, helpful, and personalized support improves the overall customer experience (CX).

• Enhanced customer loyalty: Satisfied customers are more likely to return and engage in long-term relationships with a business.

• Improved brand reputation: Positive experiences and reviews help build a strong and trustworthy brand image.

• Increased word-of-mouth referrals: Happy customers are more likely to recommend a company to others, expanding their customer base.

• Reduced costs: Optimizing customer service processes, such as automating routine tasks, lowers operational expenses and increases efficiency.

• Boosted sales: Great customer service often leads to upsell opportunities and additional purchases.

Types of customer service

Effective customer service is no longer confined to a single approach; instead, it encompasses a wide range of channels that cater to diverse customer preferences and behaviors. With the rise of technology and the digital transformation of businesses, individuals now expect to receive support through various mediums, including text messaging, chatbots, and self-service resources.

Let’s take a look at some of the most common ways in which modern customers prefer to access assistance:

Phone calls

Phone-based customer service is often used for urgent or complex problems where customers require immediate assistance or detailed guidance. When an individual calls, they’re typically connected to an agent or an automated voice response system that helps route their inquiry to the appropriate department. Phone support enables agents to easily ask follow-up questions and provide step-by-step solutions, making it ideal for troubleshooting technical issues or resolving disputes that require more human interaction.

Text messaging

Unlike phone support, text messaging allows for quick, asynchronous communication, enabling customers to interact without being tied to a live conversation. This method is often used for answering simple questions, providing updates on orders, sending confirmations, or handling straightforward troubleshooting. One of the key advantages of text-based customer service is its flexibility, as individuals can interact at their own pace without needing to stay on hold or in front of a computer. 

Email

When customers send an email to a company’s support team, they can detail their concerns at length, attach relevant files, and expect a response within a designated timeframe. Email-based customer service is ideal for handling more complex issues that may require detailed explanations or for situations where a record of the communication is essential, such as in dispute resolutions or warranty claims. It’s often used alongside other support channels, providing individuals with the flexibility to seek help at their convenience.

Social media

Platforms like Facebook, Twitter (X), and Instagram offer businesses a public-facing way to provide quick support, handle inquiries, and resolve issues. Customers often reach out to brands through comments, direct messages, or posts, expecting fast and accessible responses. If you do decide to utilize social media for customer support, it’s paramount that you have sufficient resources in place to manage these channels—40% of individuals expect a response within an hour, while 79% anticipate one within 24 hours.

Live chat/chatbots

Live chat provides immediate assistance for a variety of issues ranging from product inquiries to troubleshooting technical problems, without the need for phone calls or waiting for email responses. It can be especially effective for businesses that want to offer a fast, seamless customer experience, as agents can handle multiple chats simultaneously, providing quick and personalized service.

Even better, chatbots are often incorporated as a part of a live chat approach, acting as a quick, always-available option for customers with routine inquiries. Together, live chat and chatbots form a dynamic duo that enhances the entire CX by balancing automation with human interaction.

Self service

Self-service allows individuals to independently resolve their issues without direct interaction with a company representative. These resources typically include knowledge bases, FAQs, video tutorials, and community forums, all designed to provide customers with immediate access to information. This type of support is particularly useful for straightforward or frequently asked questions, allowing users to resolve issues at their convenience, 24/7.

In person

Customer service offered in person involves face-to-face interactions between customers and company representatives, typically in retail stores, service centers, or at events. One of the primary advantages of this type of support is that it acts as a prime opportunity for businesses to create a memorable experience that reinforces brand loyalty. Physical interactions allow representatives to convey empathy and attentiveness through body language and tone, which can significantly enhance the overall CX.

7 Important skills for providing quality customer service

Providing standout customer service involves more than just responding to inquiries; it requires a unique combination of skills that empower support agents to navigate diverse customer interactions effectively. As brands strive to create memorable experiences, the importance of having well-rounded, skilled customer service representatives becomes increasingly evident. 

Some of the core characteristics of a competent support agent include:

1. Communication

Clear and concise communication helps ensure that customers feel heard and understood, which is crucial for addressing their needs effectively. When support agents articulate solutions and responses clearly, they can reduce potential misunderstandings, leading to quicker resolutions of issues. Active listening is another integral aspect of effective communication; it enables representatives to identify the root of a problem and respond appropriately, thereby fostering trust and rapport with individuals.

2. Empathy

When agents demonstrate empathy, they acknowledge a customer's feelings and experiences, which can be particularly valuable in resolving complaints or addressing frustrations. By putting themselves in an individual’s shoes, support reps can respond in a more compassionate manner, thus making customers feel valued and respected. This emotional connection not only helps to diffuse tense situations, but also enhances the overall CX.

3. Product knowledge

Product knowledge is a fundamental aspect of effective customer service, as it empowers agents to provide accurate and relevant information to individuals. This expertise not only enhances the efficiency of service interactions, but also minimizes the likelihood of misinformation, which can lead to customer frustration or dissatisfaction. Individuals are more likely to trust a business when they feel assured that their representatives possess the knowledge necessary to assist them effectively.

4. A bias toward action

In an environment where individuals expect quick responses and efficient solutions, support agents who take the initiative to act promptly can significantly enhance customer satisfaction. This proactive mindset encourages reps to anticipate potential challenges and resolve them before they escalate, creating a smoother overall experience for customers. When individuals see that their concerns are met with a willingness to take action, they’re more likely to feel valued, usually leading to a more positive perception of the brand.

5. Patience

Customers often reach out for support when they’re confused, upset, or facing problems, and an impatient response can exacerbate these feelings. By exercising patience, customer service agents can carefully listen to an individual’s issue, ask clarifying questions, and offer thoughtful solutions without rushing the interaction. This not only helps to resolve the issue more effectively but also reassures the customer that their concerns are being taken seriously.

6. Collaboration

When support agents work together, they’re able to share knowledge, brainstorm solutions, and provide a more comprehensive support experience. This teamwork is particularly beneficial in complex situations where a single agent may lack the necessary expertise to address the problem fully. By collaborating, representatives can tap into the strengths of their colleagues, ensuring that customers always receive accurate and timely assistance.

7. Time management

Time management is crucial in customer service because it directly impacts the efficiency and effectiveness of support interactions. Support reps who prioritize their tasks and manage their time well can resolve issues more quickly, reducing wait times and minimizing frustration for customers. Efficient time management also allows agents to handle multiple inquiries simultaneously, ensuring that all individuals receive the attention they need without sacrificing the quality of service. 

Challenges in customer service

As the frontline representatives of their organizations, customer service agents navigate a dynamic landscape filled with challenges that can complicate their roles. Recognizing and addressing these difficulties is crucial for maintaining high standards of service.

Let’s examine some common obstacles that support reps may experience in their customer interactions and break down some ways in which they can address them:

Upset customers

Upset individuals present a significant challenge in customer service as their frustration can escalate quickly, impacting the overall tone of the interaction and potentially causing more agitation. When customers reach out in distress, they often express their dissatisfaction through heightened emotions, which can make it difficult for support agents to communicate effectively. If not handled properly, these interactions can result in further dissatisfaction, bad reviews, or even loss of business.

To overcome this challenge, support agents must approach emotional customers with a calm and empathetic demeanor. Active listening is essential; representatives should allow individuals to express their frustrations fully before responding. Training staff in conflict resolution techniques and equipping them with the authority to make certain decisions can also empower them to address concerns more effectively, ultimately turning a negative experience into a positive one.

Meeting expectations

Meeting customer expectations can be difficult due to the diverse and often evolving needs of consumers. Each individual comes with unique preferences, backgrounds, and experiences, leading to varied expectations regarding response times, service quality, and product knowledge. Moreover, as businesses introduce new offerings or adapt to market trends, customer expectations can shift rapidly.

Ensuring that your organization is constantly meeting these expectations requires support agents to prioritize effective communication and actively seek feedback. For instance, regularly collecting customer suggestions through surveys or follow-up interactions can provide valuable insights into areas for improvement. Additionally, ongoing training and development for representatives are essential, as it enables them to stay informed about product updates, best practices, and emerging trends in customer service. 

Troubleshooting

Troubleshooting can pose significant challenges for customer service agents, particularly when dealing with complex products or services that require in-depth technical knowledge. Individuals may present issues that are multifaceted or poorly defined, making it difficult for representatives to diagnose the problem accurately. Furthermore, agents often face time constraints, as customers expect prompt resolutions to their issues.

To alleviate these concerns, support reps can utilize troubleshooting guides, knowledge bases, or support software to help agents systematically identify and resolve issues more efficiently. Fostering a collaborative environment within the support team may also allow representatives to seek assistance from colleagues or escalate cases when needed, ensuring that complex issues are addressed effectively.

Customer service best practices

Delivering great customer service goes beyond simply addressing customer inquiries—it involves consistently applying a set of tried-and-true practices that enhance the overall CX. By implementing these guidelines, businesses can build lasting relationships with their customers, improve satisfaction, and foster loyalty in an increasingly competitive market.

Here are a few such practices that can help maximize the potential of your support strategy:

Ensure all team members are prepared for customer needs

First, it’s instrumental that business leaders provide their customer service teams with the knowledge and resources necessary to understand the products or services they support, as well as the tools used for customer interactions. This usually involves introductory training on the company’s offerings, customer service best practices, and troubleshooting techniques.

Beyond initial training, it’s also essential for supervisors to promote ongoing learning and adaptability to keep pace with evolving consumer expectations. This can be achieved by regularly assessing customer feedback and identifying areas where team members may need further support or skill development.

Provide proper resources to the customer service team

Efforts here begin with investing in the right tools, such as customer relationship management (CRM) software, knowledge bases, and communication platforms that streamline workflows and make information readily accessible. These resources allow customer service agents to quickly retrieve relevant data, track customer interactions, and offer timely and accurate solutions. 

In addition, business leaders must emphasize providing the necessary support systems for employee well-being and development. This includes offering adequate staffing to prevent burnout during peak periods, access to ongoing training programs to develop skills, and promoting a collaborative environment where team members can seek help from their peers.

Ensure customer service is accessible to all customers

Not all customers will prefer or be able to use the same methods of communication, so businesses should provide various options, such as phone support, email, live chat, social media, and self-service portals. This multi-channel approach allows individuals to choose the most convenient method for them, whether they need real-time assistance or prefer a more asynchronous interaction. 

It’s important to verify that these services are user-friendly and inclusive for all types of customers as well. This generally involves adhering to web accessibility standards, such as the Web Content Accessibility Guidelines (WCAG), which ensure that digital interfaces are usable for individuals with disabilities. For example, websites should be compatible with screen readers for visually impaired customers and customer service portals should be easy to navigate for those with cognitive impairments. 

Utilize tools and software

Modern customer service teams have no shortage of technology at their disposal which can help them carry out their support initiatives. CRM systems, for example, enable agents to track customer interactions, maintain detailed records, and provide personalized service based on past interactions. This ensures that representatives have all the necessary information to resolve issues efficiently and offer tailored solutions.

Even more, teams can leverage AI-powered chatbots and knowledge bases to provide 24/7 self-service options for customers, reducing the load on support agents and offering immediate answers to common questions. Reporting and analytics tools can also provide valuable insights into customer behavior, service trends, and areas for improvement, enabling businesses to make data-driven decisions.

Examples of high quality customer service

While customer service excellence can look different across industries, the underlying principles remain the same: attentiveness, quick resolution, and a personalized approach are all key. In this section, we’ll explore several examples of high-quality customer service where businesses go above and beyond to meet customer needs.

Offering easy accessibility of service to customers

Imagine an ecommerce business that provides multiple avenues for customers to seek help, ensuring that its service is easily accessible to a wide range of users with different preferences and needs. First, its customers can access a robust self-service portal, which includes FAQs, step-by-step guides, and detailed help topics covering everything from order issues to returns and refunds. For those who require immediate assistance, the company offers live chat and phone support, where individuals can speak directly with representatives.

Moreover, the organization caters to global customers by supporting multiple languages and incorporating accessibility features across its platforms. Its website and mobile app are designed to be user-friendly and adhere to web accessibility standards, offering features like screen reader compatibility and easily navigable interfaces for users with disabilities.

Prioritizing fast issue resolution

Suppose a major hotel chain has a guest who arrives late at night to find their room's air conditioning isn’t working. Rather than subjecting the guest to a lengthy process of reporting the issue and waiting for a solution, the chain’s customer service team can employ an integrated system that connects housekeeping, maintenance, and front desk teams in real-time. Using a centralized CRM platform, staff can log the issue immediately and dispatch the appropriate team to resolve it.

In addition, the hotel enhances its issue resolution speed by empowering employees to make decisions on the spot. For example, customer service agents may be authorized to provide complimentary services, such as a free meal or room upgrade, to compensate for any inconvenience caused. This not only resolves issues swiftly, but also turns a potentially negative experience into a positive one.

Offering self service

An auto-repair shop might opt to employ various self-service resources where customers can use their website or mobile app to access a self-service appointment scheduler, enabling them to easily book a repair or maintenance service at their convenience. The portal can also feature a comprehensive knowledge base that provides guides on common car issues, such as how to check engine oil levels or troubleshoot warning lights. 

Moreover, the shop may offer self-service tracking tools that allow individuals to monitor the progress of their repairs in real-time. Once a vehicle is dropped off, customers can log into the portal to receive updates on the repair process, view any additional services that may be needed, and even approve estimates digitally. This enhanced control gives customers peace of mind and reduces the need for follow-ups to check on their vehicle's status.

Providing proactive support

Envision a financial institution that leverages data analytics to monitor customer accounts for unusual activity, such as large transactions or changes in spending patterns that may indicate fraud. Instead of waiting for the customer to notice and report the problem, the bank can immediately send an alert via text or email, asking the client to confirm the transaction. 

Furthermore, the establishment delivers preemptive support by providing personalized financial advice based on customer data. For instance, if an individual consistently carries a high balance on their credit card, the bank could send them tailored recommendations on how to reduce debt, along with promotional offers for balance transfer programs or lower-interest loans. By using client information to anticipate financial needs and offer solutions before individuals seek them out, the institution can enhance its overall service experience.

Customer service tools and software

With new technological advancements seemingly emerging by the day, customer service teams now have more tools available to them than ever before.

A few of the most recent support innovations include:

• Chatbots: Provide automated self-service to your customers around the clock. When used across various channels and touchpoints, bots can dramatically reduce the number of conversations that human agents are tasked with fielding each day. 

• Unified dashboards: Give your customer service team a holistic view of conversations across communication platforms in a visual, easily digestible fashion.

• AI-driven technologies: Can suggest common solutions to frequent problems, recommend actions your agents can take to enhance customer support, and analyze data for improved productivity.

• Advanced ticketing solutions: Allow disparate departments to collaborate quickly and easily to resolve issues, track actions taken, and ensure no requests slip through the cracks.

Check out the top customer service software in 2024

Optimize your customer service offerings with Freshdesk!

Freshdesk serves as the preferred customer service solution for a plethora of organizations across the globe, offering a comprehensive set of features that help to deliver a complete, well-rounded support experience.

The platform is built around an extensive ticketing system that comes complete with omnichannel messaging, powerful automations, a unified team inbox, and much more. Freddy AI also contributes its intelligent capabilities to power chatbots, offer support to human agents, and continuously gather useful insights.

For customers who prefer to resolve their issues independently, various self-service options, including our knowledge base and community forums, are on hand 24/7 to help answer a wide range of inquiries. Freshdesk can also be configured in 33+ unique dialects, empowering companies to cater to global and multicultural audiences.

While we could go on for days about Freshdesk’s wide-ranging capabilities, we’d rather you experience it for yourself. Sign up for a 14-day free trial or request your demo today!