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Small businesses failing to capitalise on their unique customer service advantage
L ess than half ( 40 %) of consumers find that small businesses offer a more personalised customer service experience than larger corporates , according to FM Outsource ’ s new report , Small Business Customer Service In 2023 : A Missed Opportunity ?
The research , which investigated whether small businesses are meeting customer expectations , found that the majority of consumers ( 60 %) feel that larger businesses offer a higher quality of customer service across a range of key areas in which smaller enterprises should have a natural advantage .
Perhaps unsurprisingly , given their comparative restraints on resources , only 40 % of respondents think that small businesses resolve their complaints quicker than larger businesses .
But just 39 % of people said that small businesses seem to care more , despite challenges such as the cost of living crisis impacting earnings .
Additionally , only 37 % said they believe small businesses are more likely to go the extra mile to resolve an issue , and less than a third ( 32 %) said they are more flexible when coming to an agreement on a problem .
Martin Brown , CCO at FM Outsource , said : “ While larger businesses typically have the advantage of greater resources to invest in their customer service , smaller businesses should – in theory – have their own advantage in being able to offer a more flexible , personalised service to their customers . The research shows that unfortunately many are failing to do this and may be experiencing negative consequences as a result .”
The research also revealed the business implications of substandard customer service with just ( 41 %) saying they would be equally as likely to leave a negative review for both small and larger businesses following a poor customer service experience .
Brown continued : “ The research really emphasises that small businesses cannot afford to rest on their laurels when it comes to customer service . Consumer expectations are continually increasing and it ’ s clear that there is a real risk of small businesses suffering negative online reviews and an associated loss of custom , if they fail to meet those expectations .
“ What can really set a brand apart from its competitors is the way it treats and communicates with its customers . Excellent customer service is vital for every brand and , yet , at a time when it should be most prioritised , it ’ s falling short . Outstanding customer service can be realistically provided by businesses at both ends of the scale , but only if they view it as a priority and not an afterthought .” �
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