In the current recessionary time, there is ever increasing pressure to provide high quality customer service to ensure business survival.

The benefits of quality customer service include:

• High level of customer loyalty
• Increased profits
• Stronger position in the marketplace
• Increased customer retention 
• Increased job satisfaction and staff morale

There are various legal procedures which, if properly implemented, will assist in strengthening customer loyalty and minimise the likelihood of complaints potentially resulting in litigation proceedings. Achieving consistently high quality throughout pre and post sales activities leads to a long and mutually beneficial business relationship.

1. Terms And Conditions of Sale
Regular review of “Terms and Conditions” (T&C’s), which are rarely given the critical examination they deserve, is an integral part of any enterprise’s critical business and risk management system. It is imperative that each business organisation addresses the efficacy of its T&C’s and ensures they are legally binding and in compliance with current fair trading laws. Full compliance with governing legislation is the foundation underpinning good customer service relations. Once these technical legalities are observed, your business can focus on delivering the highest quality service to its customers.

2. Customer interaction and knowledge
Customer retention is vital in the current competitive market. Effective measures can be taken to avoid the unnecessary loss of existing customers. Customers should be clearly informed of the distinguishing features of your organisation’s customer service, which sets it apart from your competitors. Bespoke facilities and additional services should be advertised and communicated effectively to your customers.

Eliciting continuous customer loyalty remains largely dependant upon your interaction with your customers, both before and after the sales transaction. Transparency and effective redress are the hallmarks of good customer interaction. Details of your customer policies, especially your returns and complaints procedures should be clearly visible to all of your customers.
In addition, retailers must be conscious of the ever changing diversity of their customer’s needs and issues. Adaptability is essential to ensuring customer’s every changing requirements are realised. Customers should be provided with details of how they can submit individual customer requests or suggestions and measures should be implemented within the organisation to ensure that each request is adequately addressed. Customer feedback is an essential part of service excellence and should be conducted on a continual basis.

3. Strive to minimise negative customer feedback
Many organisations fail to fully appreciate the costs of negative customer feedback and the value of effective customer communications. It is estimated that a person with a complaint is likely to tell nine other people about their bad experience and name the business involved.  Loss of customers due to unresolved complaints invariably leads to lost revenue, not only from the customer affected but also from other potential customers who learn of the customer’s negative experience and this in turn leads to a loss of sales and money for the business.

It is imperative therefore for every business to have a detailed and well documented customer complaints procedure in place to empower all staff members to handle complaints more confidently, efficiently and effectively. From a managerial perspective, such a procedure helps identify potential weaknesses and, more importantly, opportunities for improvement.  A dedicated person or department focused on Customer Relations, where complaints can be immediately directed to for investigation is of assistance. This conveys a level of professionalism and reassures clients that complaints are taken seriously.  While the procedure itself can be quite simple, the benefits it will provide will be felt throughout the organisation. A systematic accounting of each complaint, along with a timely response and reaction, is essential to improving overall customer relations and customer retention.

Conclusion

Providing quality customer service requires continuous commitment. If your customers feel that they are valued your business will be rewarded not only with their loyalty but they in turn will tell others each of whom in turn becomes another potential future loyal customer.  Remember – if you don’t take care of your customers, your competitors will.

For further information, please contact Delia McMahon from our Litigation & Debt Recovery Department. 

*  This article was published on 21 February 2011 by Retail News.