September 2012
Customer service guide
There’s a lot more to customer service than simply other people about their bad experience and name the
having a sign on your wall that says: ‘The customer company involved.
is always right’. For any business to be truly
customer‑focused, everyone from front‑line staff to the However, one of the nine is probably NOT you. Rather
chief executive should strive to meet and exceed service than lodge a complaint with the company involved,
standards. Australian customers are more likely to talk with their
friends and ‘talk with their feet’ by taking their business
Customers are your business elsewhere.
You may offer a quality, well‑priced product, but if a Providing only mediocre customer service also has its
customer receives inferior service before, during or after costs. Even when things don’t go badly, it is estimated
the sale, future sales may be lost. Providing superior that around 12% to 16% of customers will still leave,
customer service in today's competitive marketplace because they were not totally satisfied with the service.
is crucial. Quite simply, customers are your business It is only through completely satisfying customers that
and lost sales through poor service means you will lose true loyalty is built.
money.
The benefits of quality customer service include:
Customer satisfaction ● increased customer retention
Providing quality customer service means ensuring your ● reduced marketing costs
customers are satisfied by consistently providing value in ● stronger position in the marketplace
a way that is perceived as valuable by the customer. ● offers a competitive advantage
● increased job satisfaction and staff morale
To provide quality customer service you need to have ● increased profits.
a long‑term focus. Aim to make quality customer
service part of your business culture. Targets for service
delivery and customer satisfaction should be included
Role of management
in the business plan and in employee job descriptions. Management must ensure the staff, processes, systems
Encourage employees to understand it's the customers and policies are supportive of each other and focused
who ultimately pay their wages. on meeting customer needs. To provide quality customer
service also requires examining what stops this
Where's the cents in that? supportive network from working, and a commitment
to make necessary changes to end the blockages and
Research and case studies have repeatedly shown many problems.
benefits can be achieved by quality customer service.
Consider the following tips for good management:
By keeping customers longer they will spend more with
you over time. The cost of maintaining a customer’s ● provide leadership and aim to make quality customer
loyalty over time is also lower than the cost of gaining a service part of your business culture
new customer. ● create a customer service focus across your whole
business
Poor service...low profit ● display and follow a Customer Service Charter, which
clearly outlines the quality of service to be expected
If the service you provide is poor then you are actively by your customers
driving your customers away. Not only that, it is estimated ● ensure your systems and procedures, incentive
that a person with a complaint is likely to tell nine programs and feedback mechanisms support the
provision of quality customer service
September 2012
● provide quality customer service to the people you ● information should be accurate and concise, clearly
rely on to meet customer needs (internal customers) displayed and able to be mailed
as well as to paying customers (external customers) ● update information regularly
● ensure a system exists to capture regular, reliable ● meet all legislative requirements.
feedback from customers about their needs and your
service Fair trading laws
● welcome customer feedback and complaints as an
opportunity to build relationships with your customers The Australian Consumer Law sets the rules businesses
and improve your product and/or service must follow when selling goods or services to consumers.
● actively encourage quality customer service and Breaking the law could ruin your business reputation
continuous improvement in everything your business in the eyes of your customers, lending institutions and
does. industry organisations.
If you think implementing customer service is too costly
or time‑consuming, think again. It doesn't have to
be. Walk in to any large bookshop and you will find a
selection of practical 'how‑to' guides on customer service
that you can implement easily. Business Enterprise
Centres Australia also have resources and short courses
to help you improve customer service.
Implementing customer service in your business can be
relatively simple and cost effective.
For more information about customer service
visit Business Enterprise Centres Australia at
www.becaustralia.org.au to find your local Business
Enterprise Centre.
Communicating with customers
To grow your business, you need to let your customers
know what you do. What is your business? What is the
product or service you are offering?
The initial information you provide is critical to building a
relationship with the customer and must be clear, concise
and honest. Information can be in a variety of forms
including paper, audio, video or website. However, it must
clearly explain what you offer. Unclear information may
result in lost sales. Here are some handy tips:
● use plain language and simple diagrams
● don't use technical language, abbreviations or jargon
www.fairtrading.nsw.gov.au This fact sheet must not be relied © State of New South Wales through NSW Fair Trading
Fair Trading enquiries 13 32 20 on as legal advice. For more You may freely copy, distribute, display or download this information with
TTY 1300 723 404 information about this topic, refer to some important restrictions. See NSW Fair Trading's copyright policy at
Language assistance 13 14 50 the appropriate legislation. www.fairtrading.nsw.gov.au or email publications@services.nsw.gov.au
