Good Customer Service Commands Higher Prices

In many ways, good customer service is its own reward. The pleasure of meeting a customer's needs and getting the job done in a timely manner is one of the perks of working in the customer service field. Of course, providing good customer service offers additional advantages. For one thing, good customer service can help make up for shortcomings in other areas, such as bumpy product rollouts or other inconveniences. These effects are well known, but one advantage you might not think about is the premium price of service when you're able to consistently meet customers' needs. What that premium is and its relative value to your company are both good things to know.

Good customer service can smooth rough edges for any company. At its most basic, good customer service involves listening to the customer, addressing the issue that occasioned the call or visit, and doing so with a friendly, helpful attitude that leaves your customer feeling that the problem, if not solved entirely, was addressed seriously by a true customer service professional.

This impression is worth serious money. One metric by which the value of a business can be measured is goodwill. Goodwill is the favorable impression customers have of a company and its potential to translate into higher sales. This is a real benchmark that can be factored in during a company's IPO or sale and help determine liability in bankruptcy. A pleasant customer experience is almost as good as cash in the bank for an ambitious company looking to increase its market share or raise capital.

One effect of generally high goodwill among customers is license to charge a premium for goods and services. All things being equal, a pizza chain that delivers quickly and always takes complaints seriously will be at liberty to charge somewhat more per unit than a rival chain that produces a superior pizza but delivers slowly and handles angry customers dismissively. That price difference is profit, and delivering an outstanding customer experience drives it up.

Putting an emphasis on good customer service makes good business sense. The fully justified premium price of service that customer-conscious companies are able to charge increases goodwill, profitability, and the market position of the firm. When combined with the improved workflow that comes with quicker, less stressful customer contacts, incentivizing good customer service for each and every customer is a win-win proposition.

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