With the ability to quickly adapt and handle customer concerns, customer service represents an area small businesses excel in, according to the University of Maryland's Robert H. Smith School of Business. Good customer service has the potential to alter consumer viewpoints and provide businesses with important feedback related to the products and services they offer. Some ways customer service impact on small business are;

Profits

Good customer service departments understand the relationship between the way they greet, treat and handle customers and the bottom line. Efficient customer service departments seek to solve problems as they occur, and, if possible, prevent them in the first place. For instance, when processing an order for products or services, good customer service departments will ask necessary questions to ensure the customer is ordering the correct item or service, and will verify the data before ending the call or contact to verify accuracy. This can reduce the drain on company resources and increase customer satisfaction by reducing the number of returns, complaints and problems that crop up because of poor handling. In addition, properly trained representatives can effectively cross-sell additional products or services while processing customer orders, thereby increasing sales.

Loyalty

Treating customers with respect, greeting them with enthusiasm and going above and beyond to resolve any problems and issues can keep customers coming back. When companies seek to resolve problems and issues in a quick, pleasant and efficient manner, customers remain confident in the company and continue the business relationship. In addition, happy customers help spread positive word-of-mouth, resulting in an additional avenue for marketing and advertising for your company. Small businesses can compete with larger businesses by cultivating customer relationships through personal attention and care.

Internal Benefits

Good customer service provide exceptional customer service to external and internal customers. Internal customers, including marketing and product development, depend on the data collected from customer service contacts to improve existing products and services. This data can include information related to safety issues, production problems and poor performance. The internal benefits of good customer service also stretch beyond current products and services. Good customer service departments capitalize on the ideas customers provide for suggested products and services, leading to opportunities for new innovations and revenue streams.

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