Small Business: Capitalize on Customer Service to Compete

It’s the little things in business that can mean the difference between success and failure, especially at the small business level. A prime example is customer service. What were once simple courtesies — offering a credit card processing option for all purchases and following up with customers to make sure they’re satisfied with their purchase — are now basic consumer expectations. According to a new survey by American Express, it’s customer services like these that small businesses should capitalize on to survive in a highly-competitive marketplace.

The 2011 American Express Global Customer Service Barometer surveyed a random sample of customers in ten nations, including the United States. Although many of the questions got very mixed responses, there was one area of accord: A large majority of all respondents agreed that small businesses place a greater emphasis on customer service than large businesses. Among those surveyed in the U.S., 81% agreed with that statement. 

While larger companies can afford to spend more on advertising and almost always offer lower prices, excellent service can become the competitive edge small businesses need to compete against the Big Boys. According to Jim Bush, executive vice president of World Service American Express, getting customer service right is more than just a nice thing to do — it’s a must do.

“American consumers are willing to spend more with companies that provide outstanding service, and they will also tell, on average, twice as many people about bad service than they tell about good service,” notes Bush. “Ultimately, great service can drive sales and customer loyalty.”

Obviously, since consumers expect better customer service from small businesses, merchants should be ready to deliver. One place to begin is by accepting credit cards. Study after study has confirmed that shoppers like the convenience and ease of paying with plastic over cash or checks. And now, with all the new, innovative credit card processing technologies available — wireless, Internet, mobile — merchants have more options than ever for taking the sale directly to cardholders, resulting in an increased level of customer satisfaction. Consult with a reputable merchant services provider to obtain the right merchant account for your credit card processing needs.

Other steps small businesses can take to ensure top customer service include hiring staff that share management’s enthusiasm and training them appropriately, keeping the lines of communication open with customers via email updates, social media and other techniques, and treating all customers with honesty and integrity that reflects well on your business.

Remember: Service is still the name of the game when it comes to competing for customers’ business!