Customer Service

I’m curious to know if there are studies that could tell us whether offering a higher level of customer service renders higher income and a more secure revenue stream. I suspect that providing better customer service would be better for your business based on some other truths that we know about business. We know the following about customers:

  • It is more expensive to gain a customer than keep a customer. 
  • Every purchase is an emotional purchase.
  • The network effect (word-of-mouth, referrals) is one of the best ways to get customers. Social proof is a strong driver for purchasing. 

From the preceding notes, we can see that good customer service would drive people to stay as customers, feel good about their purchases, and tell others about their purchase. 

Treat your customers well, and they will talk about you, feel good about you, and stay with you. 

I’ll see if I can find some literature that tells us whether this is true.