Fact-checked by Grok 2 weeks ago

Customer service

Customer service is the provision of support, assistance, and advice by a company to its customers before, during, and after they purchase or use its products or services, with the goal of enhancing customer satisfaction, fostering loyalty, and driving business growth. This essential business function encompasses a range of interactions, including answering inquiries, resolving complaints, providing product guidance, and offering post-purchase support, all delivered through channels such as phone, email, live chat, social media, and self-service portals. Key components of effective customer service include timely issue resolution, empathetic communication, and a seamless, single-step process for customers to minimize frustration, often supported by follow-up actions if issues are escalated. In modern contexts, it increasingly integrates technology like AI-powered chatbots and customer relationship management (CRM) systems to enable personalized, proactive support and 24/7 availability. The importance of customer service lies in its direct impact on customer retention, employee morale, and overall brand equity, as satisfied customers are more likely to make repeat purchases, provide positive referrals, and contribute to increased revenue. Businesses that excel in this area gain a competitive edge by differentiating themselves in crowded markets, while poor service can lead to lost customers and reputational damage. Best practices emphasize a customer-centric approach, including clear and effective communication, quick response times, and ongoing training for service representatives to handle diverse scenarios with professionalism and efficiency.

Definition and Fundamentals

Definition

Customer service is the provision of support, assistance, and advice by a company to its customers before, during, and after they purchase or use its products or services, with the primary goal of enhancing customer satisfaction and fostering loyalty. This encompasses interactions aimed at addressing inquiries, resolving issues, and ensuring a positive overall experience that encourages repeat business and positive word-of-mouth. At its core, effective customer service is guided by several key principles, including responsiveness, which involves timely responses to customer needs; empathy, demonstrated through active listening and understanding the customer's perspective; problem-solving, focused on delivering practical solutions; and proactive support, where service providers anticipate potential issues and offer guidance before problems arise. These principles ensure that interactions are not merely transactional but build trust and long-term relationships. Customer service differs from related concepts such as customer support, which primarily focuses on technical assistance and troubleshooting specific product-related problems after purchase, whereas customer service adopts a broader approach to the entire customer interaction. In contrast, customer experience refers to the holistic perception of a brand across all touchpoints in the customer journey, with customer service forming just one component of this larger framework. The scope of customer service includes pre-sale inquiries to guide purchasing decisions, post-sale troubleshooting to resolve issues, and retention efforts such as follow-up communications to maintain engagement and loyalty.

Importance in Business

Customer service plays a pivotal role in driving revenue growth for businesses by fostering customer retention, which is often more cost-effective than acquisition efforts. According to research by Bain & Company, increasing customer retention rates by just 5% can boost profits by 25% to 95%, as retained customers generate higher lifetime value through repeat purchases and reduced servicing costs. Furthermore, superior customer service cultivates relational benefits by building trust, loyalty, and brand advocacy. Customers who receive excellent service are 93% more likely to make repeat purchases, as positive interactions reinforce confidence in the brand and encourage long-term commitment. This trust extends to advocacy, where satisfied customers actively recommend the company, amplifying word-of-mouth promotion; studies show that 90% of consumers trust brands with "very good" service ratings, leading to organic growth through referrals. In saturated markets, customer service provides a key competitive advantage by differentiating brands through consistent, high-quality experiences that competitors may overlook. McKinsey research indicates that companies excelling in customer experience management can achieve breakthrough growth, often more than doubling total returns to shareholders compared to peers, as superior service creates barriers to entry via enhanced customer stickiness. This edge is particularly vital in commoditized sectors, where service excellence turns routine transactions into memorable interactions that foster preference over price alone. Effective customer service also has broader implications for organizational health, positively influencing employee morale and company culture. The service-profit chain framework highlights a direct link between employee satisfaction—bolstered by successful service delivery—and overall performance, as positive customer feedback reinforces employee engagement and reduces turnover. Salesforce research further shows that prioritizing employee experience to enable premium customer service results in 1.8 times faster revenue growth, while cultivating a supportive culture that values service-oriented interactions enhances internal motivation and cohesion.

Historical Development

Pre-20th Century Practices

In ancient societies, customer service manifested through barter systems and early legal frameworks that facilitated fair exchanges and dispute resolutions. Barter, dating back to at least 6000 BC, relied on direct negotiations between traders, where personal relationships and trust were essential for successful transactions, often involving the exchange of goods or services without a standardized medium. In ancient Rome, Roman law provided buyers with protections such as the right to claim defective goods under sales contracts, establishing rudimentary consumer rights. These principles influenced later European legal systems, where marketplace disputes were resolved through municipal courts supervised by mayors and councilmen, who imposed penalties like fines or confiscation on dishonest vendors to maintain order and protect buyers. During medieval Europe, craft and merchant guilds played a central role in early customer service by enforcing quality standards and providing mutual protections that benefited both members and consumers. These associations regulated production to ensure consistent craftsmanship, preventing the sale of substandard goods and fostering consumer trust in local markets. Guilds promoted fair practices, including oversight of apprenticeships and wages, which indirectly supported reliable service delivery in community-based economies. Interactions remained predominantly face-to-face, with guilds organizing markets and resolving conflicts through internal arbitration to uphold professional integrity. By the 18th and 19th centuries, customer service evolved in retail settings amid growing urbanization and local economies, emphasizing personal assistance and accountability. Department stores like Macy's, founded in 1858 as a dry goods emporium in New York City, introduced innovations such as refunds and exchanges, allowing customers to return unsatisfactory purchases—a departure from prior haggling-based systems. This practice, combined with clerk-assisted shopping, highlighted the norm of individualized, in-person support tailored to local patrons. Societal reliance on word-of-mouth communication amplified the importance of community trust, as positive experiences in these intimate economic exchanges directly influenced repeat business and referrals within tight-knit networks.

20th and 21st Century Evolution

In the early 20th century, industrialization and mass production necessitated more efficient customer interaction systems, marking the shift from ad hoc responses to organized telephone-based service. The widespread adoption of the telephone enabled businesses to handle inquiries at scale, with companies like Sears, Roebuck and Co. pioneering structured order-taking operations for their mail-order catalogs in the 1920s and 1930s. These early setups, often involving dedicated telephone operators, processed customer requests for products ranging from household goods to kit homes, improving accessibility for rural consumers and setting precedents for centralized service delivery. Following World War II, the postwar economic boom fueled consumer affluence and heightened expectations for product quality and support, amplified by emerging rights movements, including the consumer advocacy led by Ralph Nader in the 1960s. A pivotal example was the 1962 Kefauver-Harris Amendment, which mandated rigorous testing for drug safety and efficacy in response to public health crises like thalidomide, thereby elevating overall service standards across industries by promoting transparency, accountability, and proactive consumer protection. This era saw businesses increasingly viewing customer service as integral to building trust amid growing regulatory scrutiny and empowered consumers. The late 20th century introduced standardization to manage surging interaction volumes, particularly in the 1980s when scripted interactions became common in call centers to ensure consistency and efficiency. Concurrently, toll-free numbers, first offered in 1967, proliferated during this decade as telecommunications deregulation made them affordable, allowing businesses to centralize support without burdening customers with costs and facilitating national-scale service. Entering the 21st century, digital technologies disrupted traditional models, with e-commerce's explosive growth after 2000—driven by platforms like Amazon—shifting focus from phone-based to online self-service and chat support. By the 2020s, data analytics enabled hyper-personalized experiences, where businesses leverage customer data to anticipate needs, recommend tailored solutions, and enhance satisfaction through predictive insights.

Delivery Methods and Channels

Traditional Approaches

Traditional approaches to customer service relied heavily on direct human interactions through non-digital channels, providing personalized support but often limited by logistical constraints. In-person service, one of the earliest and most fundamental methods, involved face-to-face consultations at retail counters, on-site visits, or dedicated support locations. This approach dates back to pre-industrial eras when customers physically visited merchants or service providers to address issues such as product defects or inquiries, evolving during the Industrial Revolution as mass production necessitated more structured retail environments. For example, in retail settings, staff at counters offered immediate assistance, demonstrations, and resolutions, fostering trust through personal engagement. Telephone support emerged as a significant advancement following the invention of the telephone in 1876 by Alexander Graham Bell, enabling remote interactions without physical presence. The first commercial inbound call centers appeared in the 1960s, utilizing automated call distributors introduced in 1973 to route inbound calls efficiently to agents. These centers handled both inbound queries for assistance and outbound calls for follow-ups or sales, with escalation protocols allowing complex issues to be transferred to specialized supervisors for resolution. Toll-free numbers, established in 1966, further facilitated access by removing direct costs for customers. Mail and written correspondence served as a primary channel for customer service prior to widespread telephony, particularly for long-distance or formal complaints. Customers sent letters detailing issues, such as dissatisfaction with goods, to businesses, which responded in kind to offer resolutions like refunds or replacements. This method provided a tangible record of interactions, useful for legal or accountability purposes, and was especially prevalent in the 19th and early 20th centuries before telephones became ubiquitous. These traditional methods offered key advantages, including a personal touch that built empathy and rapport—essential for complex emotional or nuanced problems—while allowing immediate feedback in in-person and telephone scenarios. However, they faced notable limitations, such as scalability challenges; in-person service required physical proximity, telephone support often involved long wait times, and mail correspondence suffered from slow turnaround, sometimes taking days or weeks. These constraints highlighted the need for more efficient alternatives, paving the way for later multichannel evolutions.

Digital and Omnichannel Strategies

Digital customer service strategies leverage technology to provide convenient, accessible support through various online channels, enabling customers to interact without relying solely on traditional phone or in-person methods. Email support allows for asynchronous communication, where customers can submit detailed inquiries at their convenience, and agents respond with comprehensive solutions, often within 24 hours to maintain satisfaction. This method is particularly effective for complex issues requiring documentation or follow-up, as it creates a record of the interaction for future reference. Live chat, in contrast, offers real-time messaging on websites, reducing wait times and allowing immediate problem resolution while keeping customers on the page. According to a Gartner survey, live chat is projected to surpass phone and email as a top customer service channel by 2027, driven by its low-friction nature and integration with self-service options. Asynchronous chat variants further enhance this by permitting paused conversations across sessions, redefining expectations for flexible B2C interactions and proliferating in ecosystems like e-commerce. Social media integration has transformed customer service since the 2010s, enabling brands to handle queries directly on platforms such as Twitter (now X) and Facebook, where users increasingly seek public or rapid responses. This approach fosters transparency and real-time engagement, with companies monitoring mentions to address issues proactively and prevent escalation. Digital interactions, including social channels, have grown at 6 percent annually since 2010, outpacing traditional assisted service and allowing for broader reach through viral resolutions. By the mid-2010s, two-thirds of companies anticipated significant expansion in social media use for service, integrating it strategically to convert conversations into actionable support. Gartner predicted in 2017 that by 2019, customer service inquiries received through consumer messaging apps would surpass such requests coming through social media, signaling a shift toward more private, integrated digital dialogues. The omnichannel concept emphasizes unified customer experiences across multiple touchpoints, ensuring consistency whether interactions occur via phone, app, web, or in-store environments. This strategy breaks down silos between channels, allowing data sharing so that a customer's progress—such as an online query—seamlessly continues in a physical location without repetition. Companies adopting omnichannel approaches report higher customer loyalty, as seamless transitions reduce frustration and enhance perceived value. Apple's ecosystem exemplifies this, integrating services through Apple ID to enable quick scheduling of in-store appointments, personalized recommendations, and synchronized support across devices and retail spaces. McKinsey highlights that such unified experiences differentiate brands in competitive markets, with leaders prioritizing strategic alignment to deliver value across channels. Mobile apps and SMS further support on-the-go resolutions, catering to users who prefer instant, location-independent access. Mobile apps provide dedicated portals for account management, troubleshooting, and personalized notifications, often using push alerts to proactively inform customers of updates or offers. SMS enables quick text-based queries and confirmations, ideal for urgent issues like order tracking, with high open rates ensuring timely delivery. Gartner predicts that by 2025, 80 percent of customer service organizations will shift from native mobile apps to messaging channels, including SMS, for superior experiences due to their immediacy and ubiquity. These tools complement broader digital strategies by facilitating rapid, context-aware interactions that align with mobile-first consumer behaviors.

Technologies and Tools

Automation Technologies

Automation technologies in customer service encompass systems designed to handle repetitive tasks, such as call routing and data processing, thereby enhancing operational efficiency without direct human intervention. These tools emerged as businesses sought to scale support operations amid growing customer volumes, focusing on backend processes to streamline workflows. Interactive Voice Response (IVR) systems represent one of the earliest automation technologies in customer service, introduced in the 1970s to automate call routing and basic inquiries. IVR enables callers to interact with pre-recorded prompts via touch-tone keypads or speech recognition, directing them to appropriate departments or self-service options, which reduces the load on live agents. The first commercial IVR application appeared in 1973 for order inventory control, marking a shift toward automated telephony in service environments. Robotic Process Automation (RPA) involves software bots that mimic human actions to execute rule-based tasks, particularly in data entry and ticketing within customer service. These bots extract information from emails or forms, validate data, and update customer relationship management (CRM) systems or generate support tickets automatically, minimizing manual errors and processing delays. RPA has become integral for handling high-volume, repetitive administrative duties, allowing service teams to focus on complex issues. Workflow tools, such as CRM integrations exemplified by Salesforce, facilitate automated ticketing and task assignment since the platform's inception in 1999. Salesforce pioneered cloud-based CRM with built-in automation for routing cases based on predefined rules, integrating data across sales and service functions to trigger responses without manual oversight. This capability has evolved to support seamless workflow orchestration in modern customer service operations. Implementation of these automation technologies has demonstrated notable productivity gains, with studies showing reductions in response times ranging from 30% to 50% in customer service settings. For instance, automation of initial ticket handling and routing can cut first response times by approximately 37%, enabling faster issue resolution overall. Such efficiencies underscore the role of these tools in scaling service delivery while maintaining accuracy.

Self-Service and AI Integration

Self-service technologies empower customers to resolve issues independently through accessible digital resources, reducing reliance on human agents and enhancing efficiency. Knowledge bases serve as centralized repositories of articles, guides, and troubleshooting information, while FAQs provide concise answers to common queries, often integrated into searchable portals on company websites or apps. These tools enable customers to find solutions quickly, with studies showing that effective self-service options can resolve up to 70% of routine inquiries without escalation, leading to higher satisfaction and lower operational costs for businesses. Chatbots and virtual assistants have evolved significantly, transitioning from rule-based systems prevalent in the 2010s to advanced generative AI models post-2020. Rule-based chatbots, which follow predefined scripts and decision trees to handle straightforward interactions like order status checks, were widely adopted in customer service during the early digital era but often struggled with complex or nuanced queries due to their rigid structure. The advent of large language models like OpenAI's GPT series, starting with GPT-3 in 2020, introduced generative AI capabilities, allowing chatbots to understand natural language, generate contextually relevant responses, and engage in more human-like conversations, thereby handling diverse issues such as personalized troubleshooting or product recommendations. This shift aims to enable virtual assistants to resolve up to 80% of interactions autonomously by 2029, according to Gartner predictions, with current deployments achieving significant portions in routine tasks. AI personalization further enhances self-service by leveraging predictive analytics to deliver tailored experiences, anticipating customer needs based on historical data and behavior patterns. These systems analyze user interactions to offer customized recommendations, such as proactive suggestions for issue resolution or relevant support content, fostering a sense of relevance and efficiency, with reported improvements in customer satisfaction and loyalty in adopting firms. Prominent case studies illustrate the impact of these integrations. Amazon's self-service returns platform allows customers to initiate, label, and track returns seamlessly via its website or mobile app, minimizing friction and enabling hassle-free resolutions within a 30-day window. This approach contributes to customer trust and repeat business. Similarly, IBM Watson's applications in customer service, such as the deployment for O2 Czech Republic, feature a virtual assistant powered by natural language processing that handles 30% of voice-based inquiries independently, reducing wait times and agent workload while maintaining high resolution rates. In another example, Watson-enabled chatbots for insurance providers have streamlined claim processing and query handling, achieving up to 40% faster response times through AI-driven personalization and self-service guidance.

Measurement and Metrics

Key Performance Indicators

Key performance indicators (KPIs) in customer service are quantifiable metrics that assess the operational efficiency and effectiveness of support teams, focusing on process optimization rather than customer sentiment. These indicators help organizations monitor agent productivity, resource allocation, and service delivery speed, enabling data-driven improvements in handling customer inquiries. Common KPIs include First Contact Resolution (FCR), Average Handle Time (AHT), Service Level, and Agent Occupancy, each providing insights into different aspects of service operations. First Contact Resolution (FCR) measures the percentage of customer issues resolved during the initial interaction without requiring follow-up contacts. It is calculated by dividing the number of incidents resolved on the first contact by the total number of incidents, then multiplying by 100. A target FCR rate above 70% is widely recommended, as higher rates correlate with reduced operational costs and improved efficiency. Average Handle Time (AHT) quantifies the average duration of a customer interaction, encompassing talk time, hold time, and after-call work. The formula is AHT = (Total talk time + Total hold time + Total after-call work) / Total number of calls handled. Benchmarks typically hover around 6 minutes for contact centers, balancing speed with quality; exceeding this can indicate inefficiencies, while values below may suggest rushed service leading to errors. Service Level tracks the percentage of incoming interactions, such as calls, answered within a predefined threshold, often expressed as the 80/20 rule where 80% of calls are answered within 20 seconds. This KPI ensures timely responsiveness and is computed as (Number of calls answered within threshold / Total calls arriving during period) × 100. Maintaining this standard supports queue management and prevents customer abandonment, with deviations signaling understaffing or process bottlenecks. Agent Occupancy represents the proportion of time agents spend actively handling interactions versus being idle or available. It is derived by dividing the time spent on customer interactions by the total scheduled shift time, excluding breaks, with an ideal rate of around 85% to optimize workforce utilization without burnout. Rates above 90% may increase error rates, while lower figures suggest overstaffing. These operational KPIs complement customer-focused metrics by providing a backend view of service performance.

Customer Satisfaction Metrics

Customer satisfaction metrics evaluate customers' subjective experiences and perceptions of service interactions, providing insights into loyalty and retention rather than operational processes. These metrics, often collected via post-interaction surveys, help organizations gauge emotional responses and predict behaviors such as repeat business or referrals. Unlike key performance indicators focused on efficiency, satisfaction metrics emphasize outcomes like perceived value and ease, influencing long-term customer relationships. The Net Promoter Score (NPS) measures customer loyalty by asking, on a scale of 0 to 10, "How likely is it that you would recommend our company/product/service to a friend or colleague?" Responses are categorized as promoters (9-10), passives (7-8), and detractors (0-6), with the score calculated as the percentage of promoters minus the percentage of detractors. Developed by Fred Reichheld in 2003, NPS ranges from -100 to 100, where scores above 50 indicate excellent customer advocacy and loyalty. The Customer Satisfaction Score (CSAT) assesses immediate satisfaction following a specific service interaction, typically through a question like "How satisfied were you with the resolution?" rated on a 1-5 scale (1 being very dissatisfied and 5 very satisfied). The score is derived as the percentage of customers rating 4 or 5, with targets above 80% (or an average >4) signaling strong satisfaction and reduced risk of defection. Widely used since the 1990s in customer experience frameworks, CSAT provides actionable feedback on transactional quality. The Customer Effort Score (CES) quantifies the perceived ease of resolving issues or completing tasks, often via the question "How easy was it to resolve your issue?" on a 1-7 scale (1 being very difficult and 7 very easy). Introduced in 2010 by Matthew Dixon, Karen Freeman, and Nick Toman, CES focuses on minimizing friction, with lower average scores (e.g., below 3) or high percentages (above 80%) of positive responses indicating successful low-effort experiences that foster loyalty. Churn rate tracks the percentage of customers who discontinue service due to dissatisfaction, calculated as (number of customers lost during a period / total customers at the start of the period) × 100. Churn rates vary widely by industry and business model, but annual rates above 5-10% are often considered high in many subscription and service sectors, directly eroding profitability by shortening customer tenure. It connects to customer lifetime value (CLV), approximated as average revenue per customer divided by churn rate, highlighting how poor service perceptions accelerate attrition and diminish long-term revenue.

Challenges and Improvements

Common Challenges

One of the primary challenges in customer service is managing high volumes of inquiries during peak periods, which can overwhelm agents and strain operational scalability. For instance, during holiday seasons, businesses often experience significant surges in customer interactions, leading to longer wait times, increased agent burnout, and potential declines in service quality as teams struggle to maintain responsiveness. Training gaps among customer service agents represent another persistent obstacle, resulting in inconsistent skill levels that contribute to errors and suboptimal customer interactions. Performance disparities between top-performing and lower-quartile agents can exceed 30 to 40 percentage points in key metrics like resolution rates, often stemming from inadequate or uneven coaching programs that fail to address individual needs. These inconsistencies not only erode customer trust but also increase operational costs through repeated inquiries and escalations. In global operations, cultural and language barriers pose substantial hurdles to effective customer service, particularly when providing multilingual support across diverse markets. Language differences can lead to miscommunications, misunderstandings of customer needs, and reduced satisfaction, as customers increasingly expect interactions in their native tongue to build rapport and resolve issues efficiently. Bridging these barriers requires navigating varying cultural norms in communication styles and expectations, which, if unaddressed, can hinder international expansion and loyalty in multicultural customer bases. Data privacy issues further complicate customer service delivery, with stringent compliance requirements like the EU's General Data Protection Regulation (GDPR), enacted in 2018, demanding robust safeguards for personal information shared during interactions. Rising cyber threats, including data breaches that affected millions of records in recent years, amplify these risks, as approximately one-third of incidents stem from insider actions or vulnerabilities in handling customer data. Non-compliance can result in severe financial penalties and reputational damage, forcing service teams to balance personalized support with heightened security protocols amid evolving threat landscapes. Effective customer service relies on best practices that foster genuine connections and continuous improvement. Empathy training equips service representatives with skills in active listening, emotional intelligence, and perspective-taking, leading to higher customer satisfaction and loyalty. Programs incorporating exercises like empathy mapping and role-playing scenarios enable teams to better understand customer frustrations, reducing resolution times and enhancing interactions. Proactive outreach complements this by anticipating needs through data-driven alerts, such as notifying customers of potential service disruptions before they occur, which can improve retention. This approach shifts from reactive support to preventive engagement, building trust via personalized communications. Feedback loops form a critical mechanism for refinement, involving the systematic collection, analysis, and implementation of customer input to address pain points iteratively. By acknowledging responses promptly and sharing outcomes with customers, organizations close the loop, demonstrating responsiveness that boosts net promoter scores. Employee empowerment further amplifies these practices; for instance, Zappos implements a policy of unlimited call times, allowing representatives to resolve issues thoroughly without time pressures, which has contributed to their high customer loyalty ratings. Looking ahead, voice of the customer (VoC) analytics emerges as a key trend, leveraging AI to process unstructured data from surveys, calls, and social media for real-time insights, with Gartner projecting in 2022 that by 2025, 60% of organizations will integrate voice and text analysis. Metaverse support represents another frontier, enabling immersive virtual environments for troubleshooting and consultations, where avatars facilitate personalized, real-time assistance that transcends traditional channels. Ethical AI usage in service is shaped by regulations such as the EU AI Act (effective 2024, with phased implementation from 2025), which mandates transparency in algorithmic decisions and bias audits to prevent discriminatory outcomes, ensuring compliance while maintaining trust. Sustainability integration addresses growing consumer demands, with 78% of U.S. consumers prioritizing eco-friendly practices in their interactions. Companies are adopting measures like digital-only communications and carbon-neutral support operations, which not only reduce environmental impact but also appeal to willingness-to-pay premiums of up to 9.7% for sustainable services. These practices align service delivery with broader corporate responsibility, enhancing brand reputation amid rising expectations.

References

  1. [1]
    What Is Customer Service, and What Makes It Excellent?
    Customer service is the support, assistance, and advice provided by a company to its customers both before and after they buy or use its products or services.
  2. [2]
    What Is Customer Service? - Salesforce
    Customer service is the support you offer your customers, both before and after they buy and use your products or services.
  3. [3]
    Customer service vs. customer experience: Key differentiators - IBM
    The simplest key difference between CX and customer service is that CX is concerned with meeting customer needs during the entire customer journey.
  4. [4]
    Customer Support vs. Customer Service: What's the Difference?
    Sep 29, 2025 · Customer service is more about the consumer's overall experience interacting with a particular company, whereas customer support focuses on ...
  5. [5]
    [PDF] Loyalty Rules! - Bain & Company
    The bottom line is this: An increase in customer retention rates of. 5 percent increases profits by 25 percent to 95 percent. Those numbers star- tled many ...
  6. [6]
    21 Surprising Customer Retention Statistics | Annex Cloud
    A 5% increase in customer retention can boost profits by up to 75%. (Bain & Company); Almost 65% of a company's business comes from repeat customers.
  7. [7]
    107 Customer Service Statistics and Facts You Shouldn't Ignore
    Aug 5, 2025 · 93% of customers are likely to make repeat purchases with companies who offer excellent customer service. ... 90% of customers rate an ...
  8. [8]
    Experience-led growth: A new way to create value - McKinsey
    Mar 23, 2023 · McKinsey defines net revenue retention as the percentage of recurring revenue retained from existing customers over a given time period.
  9. [9]
    [PDF] Customer experience: - McKinsey
    Across sectors and regions, business leaders are recognizing the competitive advantage of superior customer experience and the value that resides not only in ...
  10. [10]
    Service-Profit Chain: How Quality Drives Profit - HBS Online
    Mar 25, 2025 · “When we create value for our customers, our customers are more satisfied and more loyal, which leads to revenue growth and profitability,” ...Missing: statistics | Show results with:statistics
  11. [11]
    Here's What Happens When You Focus on Employees to Better ...
    Aug 2, 2021 · Companies that prioritize EX to deliver a premium customer experience achieve 1.8 times faster revenue growth than those that don't, according ...
  12. [12]
    The Barter System | Definition, History & Examples - Lesson
    The barter system dates back to 6000 BC, making it the oldest mode of transaction. ... Everyday bartering interactions can involve trading with consumer services.
  13. [13]
    History of Consumer Rights Protection – COI
    Even under Roman law we find provisions to protect the buyer who entered into a contract, such as the right to claim defective goods. Under Czech law, the ...
  14. [14]
    [PDF] Inclusion and Exclusion in Medieval European Craft Guilds.
    They increased business and brought in more customers by enforcing quality standards. Conversely, guilds imposed a plethora of entry barriers against groups ...
  15. [15]
    [PDF] Business in the Middle Ages: What Was the Role of Guilds?
    Guilds are defined as associations of craftsmen and merchants formed to promote the economic interests of their members as well as to provide protection and ...
  16. [16]
    Compartment Couture: New York City Department Stores 1850-1930
    Sep 11, 2018 · ... Macy's, a dry goods store founded in 1851 and a department store by 1858, were “harbingers of modern retailing” (Kawamura 191-203). As the ...
  17. [17]
    What was marketing called before 1900? - Matt Hopkins
    Jan 20, 2015 · Before 1900, businesses used word of mouth, local shopkeepers, and direct sales to local shopkeepers, with promotion mainly in store.Missing: pre- | Show results with:pre-
  18. [18]
    Call centers: the history of their origin and development - SIGURD IT
    Mar 15, 2022 · The concept of customer service by telephone originated in the 1920s, and telephone operators were the first to provide such services.
  19. [19]
    Reform, Regulation, and Pharmaceuticals — The Kefauver–Harris ...
    in the form of “adequate and well-controlled investigations”— before ...Missing: influence | Show results with:influence
  20. [20]
    The History of the Call Center Explains How Customer Service Got ...
    Aug 5, 2016 · This anecdote highlights something important about customer service: Service with a lot of interaction is highly intensive and rarely scaleable.
  21. [21]
    The History of 800 Numbers and Why We Want Them - Talkroute
    ... 1980s to make toll-free service more affordable and efficient. In 1993, 800 numbers became available from any phone carrier in the telecom industry as they ...
  22. [22]
    A Short History of Digital Commerce and Five Trends to Watch in the ...
    May 10, 2021 · During the 2000s, technology matured. RESTful APIs eventually took hold as microservices, launching a new set of ecommerce platform vendors. At ...Missing: disruption growth
  23. [23]
    Unlocking the next frontier of personalized marketing - McKinsey
    Jan 30, 2025 · As more consumers seek tailored online interactions, companies can turn to AI and generative AI to better scale their ability to personalize experiences.Missing: 2020s | Show results with:2020s
  24. [24]
    How Tech Has Shaped Customer Service for Almost 150 Years
    Rating 4.7 (40) Oct 8, 2021 · Before communications technology allowed businesses to serve customers remotely, the only way to provide customer service was in person. If a ...
  25. [25]
    History and evolution of contact centers - TechTarget
    Aug 16, 2024 · Early 1900s. Sears introduced a new time-scheduling system that enabled it to handle 10 times the volume of business using an assembly line ...Missing: 1920s | Show results with:1920s
  26. [26]
    Traditional & Technological Methods of Customer Service - Study.com
    In this lesson, we'll discuss the differences between technological and traditional methods of customer service.<|control11|><|separator|>
  27. [27]
    Gartner Survey Finds Self-Service and Live Chat Will Surpass ...
    Aug 27, 2025 · Gartner Survey Finds Self-Service and Live Chat Will Surpass Traditional Channels as Top Customer Service Technologies By 2027 · Phone and Email ...
  28. [28]
    Is Asynchronous Chat The Future Of Customer Service? - Forrester
    May 4, 2023 · Asynchronous chat is poised to proliferate throughout the B2C ecosystem, redefining expectations around customer service.
  29. [29]
    The contact center crossroads: Finding the right mix of humans and AI
    Mar 19, 2025 · While digital interactions have grown faster than assisted ones (6 percent annually since 2010, according to our research), human-to-human ...
  30. [30]
    The New Conversation: Taking Social Media from Talk to Action ...
    Two thirds of companies predict their use of social media will grow significantly over the next three years, but still struggle with strategic integration of ...
  31. [31]
    How to Market to Customers with Mobile Messaging - Gartner
    Mar 24, 2017 · In-app push notifications encourage a company's more loyal users (those who have downloaded a branded application) to engage with an ...
  32. [32]
    Omnichannel: The path to value | McKinsey
    Apr 30, 2021 · Omnichannel excellence requires a laser-like focus on value creation. Leaders in the field take a hard look at their strategic and customer priorities.Missing: Apple | Show results with:Apple
  33. [33]
    The five zeros reshaping stores - McKinsey
    Mar 16, 2022 · Channels integrate seamlessly with Apple ID, allowing customers to schedule in-store appointments in seconds and helping reps to quickly ...
  34. [34]
    Gartner Predicts 80% of Customer Service Organizations Will ...
    Jan 12, 2021 · By 2025, 80% of customer service organizations will have abandoned native mobile apps in favor of messaging for a better customer experience ...
  35. [35]
    History of IVR & Its Evolution Through the Years
    Aug 29, 2023 · The first commercial use of IVR was in 1973 when Steven Schmidt used the technology for an order inventory control system. IVRs were also used ...1970s: Increased Use of... · 2020s to Present Day: Modern...
  36. [36]
    A Closer Look at Robotic Process Automation in Customer Support
    RPA can automate updating customer information or entering data into CRM or ticketing systems. Bots can extract data from different sources, validate and format ...What is robotic process... · Examples of RPA automation...
  37. [37]
    The Complete History of CRM - Salesforce
    Automating sales and marketing. The beginnings of CRM as we know it started in the 1980s. Robert and Kate Kestnbaum were pioneers of database marketing.
  38. [38]
    New Data Shows 4 Ways Automation Impacts Customer Service
    Automation increases repeat purchases by 36%, reduces first response time by 37%, resolution time by 52%, and ticket-to-order ratio by 27%, and increases CSAT ...Missing: 30-50% | Show results with:30-50%
  39. [39]
  40. [40]
    The evolution of chatbots and generative AI - TechTarget
    Apr 25, 2023 · Chatbots evolved from basic rule-based bots, to conversational agents using NLP, and then to generative AI chatbots using large language models.
  41. [41]
    Chatbot Evolution: ChatGPT Vs. Rule-based - Analytics Vidhya
    May 12, 2023 · In this blog, we will explore the evolution of chatbots, starting from rule-based chatbots to the emergence of ChatGPT, which is powered by large language ...Chatbot Evolution: Chatgpt... · Rule-Based Chatbots · Gpt3. 5 And Gpt4 Api<|separator|>
  42. [42]
    AI customer service for higher customer engagement | McKinsey
    Mar 27, 2023 · AI-enabled customer service is now the quickest and most effective route for institutions to deliver personalized, proactive experiences ...
  43. [43]
    Reimagining Consumer Experiences in the AI Era for ... - Deloitte
    Hyper-personalized and customer-centric experiences: AI leverages predictive modeling and sophisticated customer segmentation to deliver hyper-personalized ...<|separator|>
  44. [44]
    Amazon Is Losing Its Focus On Frictionless Customer Experience
    Sep 26, 2024 · From One Click ordering to frustration-free packaging to a trivially simple return process, Amazon strives to make things easy for its customers ...
  45. [45]
    IBM Case Studies
    O2 Czech Republic used IBM watsonx Assistant to create a virtual assistant that handles 30% of customer service inquiries exclusively by voice. IBM CIO ...
  46. [46]
    Transforming Customer Support with IBM Watson & Generative AI
    Streebo and IBM revolutionized insurance customer support with a chatbot powered by Watson & Generative AI, improving efficiency and customer experience.
  47. [47]
    The One Number You Need to Grow
    The One Number You Need to Grow by Frederick F. Reichheld from the Magazine (December 2003). The CEOs in the room knew all about the power of loyalty.
  48. [48]
    CSAT: Definition, Calculation & 2025 Benchmarks - Retently
    CSAT (Customer Satisfaction Score) is a survey methodology used to measure a customer's satisfaction with a business, product, or service.
  49. [49]
    What's Your Customer Effort Score? - Gartner
    CES is measured by asking a single question and scoring the response on a scale from 1 to 7, with 1 representing the highest level of disagreement with the ...
  50. [50]
    Churn Rate: Definitions, Examples, and Calculations - Investopedia
    The churn rate is the percentage of customers or subscribers that discontinue their relationship with a business over a specific period, indicating the ...
  51. [51]
    Customer Lifetime Value (CLV) Formula & Example - ChurnZero
    Customer Lifetime Value (CLV) is the amount of revenue your business will make from a customer over time. Find how to calculate it here.
  52. [52]
    It's the Most Challenging Time of the Year..for Customer Service
    Dec 10, 2024 · High Volume of Inquiries: During the holiday season, some businesses experience a doubling of customer contact rates, as Forester Research ...
  53. [53]
    Emphasize Emotion In Your Holiday Customer Service - Forrester
    Emphasize Emotion In Your Holiday Customer Service ... Brands are planning for an influx of seasonal agents to handle increased interaction volume during the ...
  54. [54]
    Smarter call-center coaching for the digital world | McKinsey
    Nov 19, 2018 · A gap of much more than 30 to 40 percentage points between agents in the top performance quartile and the bottom suggests weaknesses in the ...Missing: errors | Show results with:errors
  55. [55]
    The Impact Of Multilingual Customer Support On Customer ... - Forbes
    Oct 30, 2024 · Providing multilingual customer support is essential to ensure that language barriers do not hinder sales and negotiations. A multilingual ...
  56. [56]
    What is GDPR, the EU's new data protection law?
    The GDPR will levy harsh fines against those who violate its privacy and security standards, with penalties reaching into the tens of millions of euros. With ...Does the GDPR apply to... · GDPR and Email · Article 5.1-2Missing: threats | Show results with:threats<|control11|><|separator|>
  57. [57]
    The consumer-data opportunity and the privacy imperative - McKinsey
    Apr 27, 2020 · About one-third of the breaches in recent years have been attributed to insider threats. This risk can be mitigated by ensuring that data ...
  58. [58]
    How data privacy compliance strategies can mitigate cyber threats
    Aug 5, 2024 · Organizations must develop solid data security policies and practices to help prevent serious incidents, including information breaches involving customers and ...
  59. [59]
    6 Best Practices to Show Empathy in Customer Service | HelpCenter
    Aug 2, 2024 · 1. Acknowledge your customer's concerns 2. Practice active listening 3. Look at things from your customer's perspective 4. Overcome your biases 5. Use positive ...
  60. [60]
    Empathy Exercises for Customer Service: 10 Ways to Train Your Team
    Oct 15, 2025 · Explore 10 empathy exercises for customer service professionals. Learn how to train your team to better understand customers and deliver ...10 Empathy Exercises To Help... · 1. Empathy Map · 6. Storytelling Sessions
  61. [61]
    What is proactive customer service? Examples + strategies - Zendesk
    Aug 12, 2025 · Proactive customer service is anticipating and addressing customer needs before they arise. It involves taking the initiative to resolve issues, provide ...
  62. [62]
    Best Practices for Proactive Customer Service Success - Sobot
    May 12, 2025 · Best practices include leveraging customer feedback, using technology/automation, training teams, personalizing interactions, and monitoring ...Strengthened Brand... · Personalize Customer... · Measure Success And...
  63. [63]
    What Is a Feedback Loop and How Does It Work? - Qualtrics
    Oct 6, 2021 · A customer feedback loop is the process of getting feedback from customers and responding to that feedback. You can have positive or negative ...
  64. [64]
    Closing the Customer Feedback Loop - Harvard Business Review
    Generated by a brief survey the investment firm e-mails out daily, the report shows the most recent responses from her team's clients.
  65. [65]
    How Zappos Customer Service Wows Customers To Win - Chattermill
    Unlimited Call Times​​ At Zappos, they don't measure call time, they're longest call was almost six hours long! They don't use scripts because they trust ...Meet Zappos · Why Is Zappos Customer... · Zappos Customer Service...Missing: empowerment | Show results with:empowerment<|separator|>
  66. [66]
    6-Step Voice of the Customer Strategy for 2025 - Sprinklr
    Jun 2, 2025 · By 2025, 60% of organizations with VoC programs will move beyond surveys, analyzing voice and text interactions to gain deeper insights. The ...What is a 'voice of the... · action-ready steps for an... · reasons why a strong VoC...
  67. [67]
    The future of CX: five ways the metaverse will transform customer ...
    Jan 19, 2023 · The metaverse will empower customers, enable real-time conversations, and offer greater personalization through avatars and AR, redefining CX.
  68. [68]
    Ethics of AI in customer experience and service - Zendesk
    Aug 7, 2025 · AI ethics act as a safeguard against biases, privacy violations, and unintended consequences that can harm others (and your business).
  69. [69]
    Do consumers care about sustainability & ESG claims? - McKinsey
    Feb 6, 2023 · A recent study by NielsenIQ found that 78 percent of US consumers say that a sustainable lifestyle is important to them. Yet many CPG executives ...
  70. [70]
    Consumers willing to pay 9.7% sustainability premium, even as cost ...
    May 15, 2024 · Consumers are willing to spend an average of 9.7% more on sustainably produced or sourced goods, even as cost-of-living and inflationary concerns weigh.
  71. [71]
    Research: Consumers' Sustainability Demands Are Rising
    Sep 18, 2023 · For most consumers, sustainability has been considered a “nice-to-have” in the brands they buy, but it's rarely been table stakes.