How to Improve Customer Service and Why You Need To

how to improve customer service

Delivering exceptional customer service is essential for every business, but unfortunately very few do it.

In 2025 customer expectations are higher than ever, and meeting them can be the difference between thriving and barely surviving.  Most small businesses don’t have the luxury of a dedicated customer service team, so you must take a hands-on, strategic approach to customer service.

Read on to discover how to improve customer service and why it’s critical to your future profitable growth and success.

Nine important reasons why exceptional customer service matters more than ever

1. Essential for customer retention

Acquiring new customers is usually more expensive than retaining existing ones. By offering excellent service, you increase the chances of repeat business. Loyal customers not only spend more over time but are also less price-sensitive.

2. Gets you more reviews and referrals

Happy customers are your best advocates. They’ll give you a positive review and  recommend your business to friends, family, and online communities. This organic marketing is especially powerful for small businesses with limited advertising budgets. Contact us for details of our low-cost Reputation Management service which will significantly boost your reviews.

3. Differentiates you in a competitive market

Finding a way to stand out from your competitors is hard. When there’s not much difference in the public perception of what you offer (eg:  all plumbers are the same aren’t they?), your competitors might cut prices or do a lot of local marketing to win business.  When you develop a solid reputation for outstanding service (which is what everyone wants)  – it creates a long-term competitive edge that’s hard for your competitors to replicate.

4. Boosts your online reputation

With online reviews being a key decision-making factor for many customers, positive customer service experiences often translate into good reviews. You’ll notice when you read reviews – 95% of them are about the good or bad customer service they received from a business, and less about the product or service purchased.  Negative experiences can damage your reputation quickly. (Our Reputation Management service makes it easy to get more reviews, respond to them, and feature them on your website.)

5. Builds stronger relationships

Excellent customer service helps create meaningful relationships with customers, fostering trust and loyalty. People are more likely to return to businesses that they know, like and trust, and make them feel valued and understood.

6.   The key to effective crisis management and problem-solving

Mistakes happen in every business, but how you handle them defines customer perception. Transparent customer service can turn a dissatisfied customer into a loyal advocate, when your address concerns promptly and respectfully.

7. Builds employee morale

A strong focus on customer service creates a positive culture within the business. When your employees see customers being treated well and responding positively, it boosts their own job satisfaction and productivity, and inspires them to also give great service.

8. Demonstrates you live up to your brand values

Walking the talk is vital.  If your website and other marketing assets make promises (eg: that you’ll turn up on time, deliver a high-quality service, keep the customer informed of progress etc – then you must do it. Consistently excellent customer service reinforces your brand’s values and message.

9. Helps you achieve business growth through feedback

Customers who feel valued are more likely to share their opinions and suggestions. This feedback is a goldmine for improving products, services, and overall operations, helping your business grow.

customer service statistics

A Salesforce study found that 78% of customers are willing to buy from a business again if their issue is resolved and they receive excellent customer service. This shows that even small improvements in service can win back lost customers and solidify loyalty.

How to improve customer service

Five simple but powerful strategies you can implement to improve customer service in your business now.

1. Meet expectations for immediate assistance

Today’s customers define “immediate” response as within 10-15 minutes. For a small business, achieving this might seem daunting, but simple strategies can help:

  • Set up automated responses: Our Customer Hub comes with automated workflows that send a customised automatically to people who fill out a form on your website, acknowledging their enquiry and letting them know you will be back to them shortly.  The system also sends you an automated notification to let you know you have a new enquiry and to follow it up. We can also customise the workflow to send sms notifications.
  • Monitor social media channels: Not everyone sends will enquire with you by filling out a form or phoning you. Some prefer to only use Messenger. Some like Whatsapp. We can integrate your Facebook, Instagram, and Whatsapp accounts so that any messages via these channels come into your central Customer Hub. You are notified and you or your team can respond directly to the message from inside the Customer Hub app.
  • Prioritise responsiveness: If you don’t have a support person to help you with customer support and answering questions, we recommend dedicating a specific time each day for doing the follow up.

Example: Often tradies are onsite digging holes or crawling into tight spaces and they simply cannot answer incoming calls and give the caller their best customer service. Instead of letting the phone ring out or go to voicemail, you could use our Customer Hub Missed Call Text Back Service which sends a polite text message to the caller advising them you’re on the job and will get back to them soon. This helps your prospects and customers feel attended to, even when you are busy on-site, and reduces the likelihood of them contacting a competitor.

2. Make it easy for customers with self-service options

Did you know that 69% of consumers prefer to solve problems on their own? Offering self-service resources not only lightens your team’s workload but also improves customer satisfaction. Here’s how to do it:

  • Create a simple FAQs page: Address common questions about your products or services.
  • Develop user-friendly guides: Videos, step-by-step instructions, checklists and  downloadable manuals can help customers figure out how to do things which are second nature to you, but are new or confusing for your customers. This will save you and your team a lot of support and training time.
  • Implement a searchable knowledge base:  Add a search tool to you website to make it easy for customers to quickly find answers.

Example: A finance broker could create a downloadable checklist for common finance processes, such as applying for a mortgage or leasing a vehicle. This makes it easier for clients to assemble the required documents ahead of consultations, saving time for both parties.

3. Use AI to streamline Customer Support

AI tools are revolutionising how businesses handle customer service. With limited resources, small businesses can use AI to provide consistent, round-the-clock support without hiring additional staff. Here’s how:

  • Webchat:  Adding webchat to your website means you can answer questions from website visitors immediately, or if you’re not available the enquirer will be asked for their email address and you’ll be notified about the enquiry.  It will be saved in your Customer Hub and you can answer directly.  Webchat has fast become a preferred method of communication for many people.
  • Chatbots for FAQs: AI-driven chatbots can answer common customer questions in real-time, ensuring that customers get the information they need promptly.   Creating and training the chatbot is a service that is available through our Customer Hub.
  • Streamlined workflows: AI can route inquiries to the right team member or suggest solutions based on the customer’s issue.
webchat
Webchat popup on one of our sites

Example: A caravan park could install a chatbot on their website to answer common questions, such as check-in times, location, facilities, booking link, pet policies etc. This helps customers feel attended to, even when staff are busy on-site.

4. Self-Service and Customer Satisfaction

Self-service isn’t just convenient for customers—it’s essential for small businesses with limited staff. When done efficiently, self-service options can enhance the customer experience and free up your team for more complex inquiries.

  • Interactive tools: Allow customers to check availability, book appointments, or calculate important data directly on your website, as per the example here of a Split Loan Calculator tool we added to a client’s website.
  • Knowledge bases: Offer detailed instructions or guides for troubleshooting common tasks and issues.
  • Community forums: Create a Facebook Group where customers can share tips or help each other.
split loan calculator
Split Loan Calculator Tool

Example: A test and tag business could offer an online pricing tool where customers can enter their location and the number of items to be tested and receive an instant price estimate.

The competitive advantage of great service

Customer service isn’t just about fixing problems—it should be the main thing you deliver - it’s a core part of your brand experience. When customers feel valued and heard, they’re more likely to return, refer others, and leave positive reviews. With tools like automation, self-service resources, and AI, even the smallest businesses can deliver world-class customer experiences.

Take action today

Improving customer service doesn’t require a massive team or a hefty budget.  Start small: respond faster, listen better, and make problem-solving and customer delight a priority.

In 2025, these efforts will pay off in customer loyalty, positive word-of-mouth, and business growth. Don’t keep your customers waiting, contact us today about our powerful Customer Hub which makes it so easy for you to deliver outstanding customer service – every single time.

customer hub
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About Annette Welsford

Hi there. My passion is to inspire and help business owners to create the type of marketing and customer service that makes their business irresistible. I'm privileged to have a talented team at Commonsense Marketing who create and execute beautiful websites, engaging social media campaigns, and fantastic email campaigns that deliver results for our clients. And it's wonderful that many of them have said lots of nice things about the work we’ve done (see our case studies). We love to work with the owners and teams of small to medium sized business who are motivated to become the best in their niche and achieve more than they ever thought possible.