Importance of Customer Service in a Business

We all can agree that businesses are not an easy thing to master, they require extra effort in order to make them successful, stable, and able to survive in the long term. And the fact of the matter is that the condition of every business around the world is in shambles, and that is due to various reasons. As businesses were already tough to run and this became even more difficult after the pandemic when the economy was badly hit and every economic sector was either closed or was functioning at the minimum capacity. And the closure of businesses is such a thing that affects every other part of the economy, as corporates and businesses are major hubs that offer employment opportunities to the general public. So when businesses close they have a devastating domino effect on the whole economy itself.

This domino effect was practically witnessed during the COVID pandemic when the closure of businesses soared the rate of unemployment to an all-time high. The unemployment crisis became so bad that the government had to launch assistance schemes in order to cater to such a larger population of unemployed individuals. Some states estimate that these assistance programs were covering almost 80 percent of America’s working class. And all of this was because almost every business and economical hub was closed due to the impending lockdowns placed in the aftermath of the pandemic. Although, the poor performance of businesses cannot be entirely blamed on circumstances, yes it is also a fact that COVID played a big part, but handling a business was always a tough cookie to crack.

The Main Problem of New Businesses and Startups

This tough job of sustaining a business is also shown in the stats from the US Labor Bureau of Statistics, which states that almost 20 percent of new businesses fail within the first year of operation, while 50 percent fail by the end of the fifth year, and after 10 years only a third of the market remains, and all the rest new startups that started 10 years back falters. But if carefully analyzed the failure of all these new businesses becomes quite apparent, because one of the main reasons in most cases is either bad customer service or no after-sale services at all. That’s because a common business mindset is that customer service is a burden on the overall infrastructure of a business as it serves no real purpose and consumes a lot of energy and resources. Not only is this narrative far from the truth, but mindsets like these are the main reason why many new businesses are not being able to flourish over a long time.

Impact of Customer Service on the Longevity of a Business

Customer service is a key component that decides whether a business will become a long-term stakeholder or will just fade away along with many others that came before. Here it is important to give the example of Cox Customer Service, Cox Communications had a humble beginning back in the 1960s but today it is the third-largest cable company in the US standing alongside the ranks of major telecom giants like Spectrum, Xfinity, and AT&T. This has all been possible only because of the exceptional customer service that Cox offers to its customers which is evident from online reviews of actual users. This is because customer service is an aspect that influences several core components of a business these components range from brand image, positive word of mouth which results in free marketing, a loyal customer base, and overall good standing in the consumer market.

All these things are quite important for the long-term survival of a business and we are going to discuss some of these factors below.

Positive Word of Mouth and Indirect Marketing

Marketing is an important aspect of a business where a company usually spends a lot, this expense is rather considered as an investment which if done the right way can open countless streams of revenue for any business. The basic purpose of marketing is to propagate a positive image of a company’s products and services in the market in order to grab more and more customers, which is why businesses spend so much on marketing. However, the best type of marketing is the one that spreads through positive word of mouth from existing customers, since it’s more believable as compared to any other type of print or digital advertisement.

Another benefit is that this marketing type is completely free and you only need to provide the user with a good service experience, this can only happen through good customer service. Through positive customer interactions, your existing customers become your brand advocates and spread a positive image of your brand in the market creating a great organic marketing channel.

Brand Image and Integrity

In the current consumer market, a brand image is everything, every multimillion-dollar company that is standing firm today has made this fortune on its name rather than on its products and services. Take the example of Apple, arguably the best performing smartphone company in the world today. On paper, their smartphones have weaker hardware as compared to their competitors like Samsung. Still, Apple beats its competition every year with a huge margin. That’s because people don’t buy the iPhone for its features or hardware but rather they buy it for the brand name of Apple. Thus a brand’s image is everything, and this image is created through a loyal customer base.

In order to gather a loyal fan base regarding your products that can uplift the image of a brand while also supporting it through all thick and thins, it is only possible if your customer is happy with your services, and customer service is the department that is directly related to ensuring customer satisfaction. Thus the better a customer service department will be to handle customer queries, the more the level of customer satisfaction will increase, and these satisfied customers will create a loyal user base for your brand which will ultimately uplift your brand image in the market.


By now we have already established how important customer service is for a business and through this article, we tried to explain how customer service plays a crucial part to uplift a business by influencing its different components. And through the above-mentioned arguments, there shouldn’t be any doubt regarding the viability of customer service and its ability to completely transform a business for good.