Good customer service leads to customer retention. It is simple and straightforward. Most customers will continue to do business with a company that responds to their needs/issues/wants. Customer service ensures that customers are able to express what they need, and then provide the requisite response. Customer service aims to provide customer satisfaction.

In a world where there is a choice in companies to do business, customers choose those that provide the best service.  The best service could be a variety of things: ease of communications, quick problem resolution, personalization, and so forth. It gets more complicated when a company has a monopoly (as do most state utilities). Customers can’t leave but they can complain. If a customer is satisfied, he/she won’t complain and won’t seek alternatives.

There are steps a company can take to increase customer satisfaction (and thus,retention). According to Cheryl at the Service Untitled blog, these steps should be ongoing. She counsels the following:

Hire the right people who have the right attitude. Are they friendly? Do they thank you?

Do what you promise. Customers remember, and customers leave if you disappoint them by not delivering what you promise.

Pay attention to your customers, and what is going on around you in your business.

Help the customer even though it might not mean a sale at that particular time. Go beyond your own needs.

Handle complaints in a mature manner. Admit when something has gone wrong, and correct your mistake. Always apologize to the customer.

Stay in contact with the customer, and know their needs.

If you keep a database of addresses and email lists, send your customers birthday cards, promotions, and current interesting information. You want to stay in their minds, but never make it seem as if you are being a pest.

Instituting some (or all) of these customer centered strategies makes sense because they can lead to customer satisfaction, which is of course, the ultimate goal of customer service.  Generally, satisfied customers will not look elsewhere.