Even with the increasing popularity of online shopping, in-store transactions dwarfed e-commerce business in 2023. Last year alone, in-store shopping logged $7.05 trillion in sales versus $1.24 trillion online in the United Stats (CapitalOne Shopping Research). A recent Retail Council of Canada survey indicated that 3 out of 4 consumers would prefer in-store shopping for the upcoming back to school season. Preferences for in person interactions are still strong but with a sagging worldwide economic situation, it is critically important for small and midsize businesses to capitalize and maximize each customer engagement. The size advantage for SMBs gives them the ability to quickly examine processes and pivot quickly when needed. The downside is that customer facing SMBs feel the impacts, almost immediately, of negative customer experiences. A quick run down of current customer service processes and skill sets can prepare frontline staff to fully engage those customers, driving positive experiences and ultimately the bottom line.
The Good, the Bad, the Ugly
For SMB owners and managers, it could be more practical to understand what exactly is bad customer service. Quantifying the causes and symptoms can help leadership quickly identify opportunities that can elevate the individual experience. Some common ‘bad customer service’ ‘symptoms’ are:
- Quoting company policy frequently to customers
- Frontline teams lacking in appropriate tone and customer empathy
- Unclear or no defined customer service culture within the business
- No follow up or upskilling with the individual after a negative customer experience
- Minimal or infrequent individual performance check ins or reviews
- Little or no focus on customer service skills development
With such importance on the forward facing elements of the business, delivering exceptional customer service interactions on a consistent basis is critical to success, especially in the realm of SMBs. Quickly identifying any potential weaknesses through bad customer service traits can help SMBs pivot to the right direction.
The End Result
Because of the smaller size of SMBs, business effects have far greater impacts than larger, more complex organizations. Customer service has always been a major differentiator between smaller organizations and corporate giants and consumers have much higher expectations when patronizing SMBs. In light of those high expectations, negative customer experiences have farther reaching implications and can impact the brand’s reputation. Negative word of mouth marketing can be much more powerful in the SMB class and delivering exceptional experiences on a consistent basis is crucial for brand reputation. Other benefits from delivering high levels of customer service:
- Positive word of mouth marketing can quickly increase the customer base
- Increased revenue with higher individual (basket) value
- Higher customer loyalty and increased visits
- Stronger brand reputation
- Decreases in costs associated with external loss
Customer facing businesses rely on ‘customers’ for revenue and delivering customer service is a critical operational component. Understanding the short and long term benefits for the business by consistently delivering high level interactions will highlight the crucial importance of process and frontline skill set.
Strategies to Deliver
Building a customer service culture starts at the top and leaders who have excellent customer service skills are best positioned to develop, grow and maintain that culture. Defining the goals of the business when it comes to delivering customer service is the first step in planning and strategizing the forward facing part of the business. Evaluating the entire customer service experience from door to door and aligning that process to business expectations establishes the strategy for delivering customer service. Fundamental customer service skills are an essential part of the onboarding process for new hires and going skills development will positively impact individual performance when engaging with customers. Less formal, one on one upskilling and huddles are high impact methods for delivering positive customer service messages and tools individuals can use to improve engagement and drive revenue. Planning a strategy for customer service can define the business’s culture but follow through is key to elevating and maintaining performance.
The Bottom Line
Customer facing businesses are in challenging times but opportunities for driving business do exist as consumers still have an overall preference for in-store shopping. Evaluating the current ‘customer service culture’ at the business can identify ways to improve and maximize those precious in person engagements. Understanding the negative impacts of bad customer service at SMBs can help create better and more effective frontline facing strategies to deliver exceptional experiences. A positive customer service culture starts at the top with managers and owners vocally and enthusiastically supporting proactive customer-centric initiatives. SMBs that provide exceptional customer experiences will yield valuable benefits such as reduced costs, increased grassroots marketing and, most importantly, more revenue. With a dicey consumer spending environment, prioritizing and maximizing each customer interaction becomes even more critical for driving the bottom line.