What are the foundations of good customer service? In these lessons, you'll learn about key concepts of customer service, like its value, how to determine customers' expectations, develop service standards, communicate with the customer and track customer satisfaction. These are all critical components of establishing and maintaining a life-long customer relationship. Why is customer service important? Years ago, while driving to a speaking engagement, James Lloyd, president of 9 Screens International realized he'd forgotten to pack his shirt and tie. All of the nearby stores were closed and wouldn't open for another hour. Remembering a story about Nordstrom's excellent customer service, he decided to call them. The salesperson gladly took his order and said she would have a shirt pressed and a tie picked out for him by the time he arrived. She even offered to bring the items out to his car to save time. When he reached the store, the salesperson was in the parking lot with his attire ready to go. And Nordstrom's wasn't even open for business yet. While the tie and shirt he'd bought were more expansive than Lloyd would have liked, he said, "When your service is phenomenal, the price is less of an issues." In short, good customer service is good for business. We all have different ideas and concepts of what good customer service is. It could be something as simple as having knowledgeable people available to explain the product and answer questions or it could be staying open at convenient hours. Some crucial elements of good customer service that associates should practice include patience, empathy, and compassion. Patience is a key element of good customer service because customers don't always know what they want. They often need a knowledgeable associate to spend time with them to help them through the decision-making and purchasing process. By using empathy, which is when you relate to other people's feelings, the associate can identify with what the customer is experiencing. Customers can feel when the associate is detached from their problem and doesn't care about their feelings. Compassion is critical because it demonstrates a desire to help others, like going the extra mile to help the customer out. For example, compassion might be helping a customer if they say that they're not able to pay a bill but your company's policy is to demand payment. Remember, the ultimate goal of customer service is to build a lasting relationship with the customer. Customer service has value. Value is what a customer receives or expects to receive when they purchase something. Value is represented by the overall satisfaction the customer receives from the product or service with consideration for the price. But how do we assign value to good customer service? Is it even measurable? Yes, it is. And the easiest way to measure it is by gathering data from the customer. For example, sales receipts use offers like free food, discounts on future purchases or even cash to entice customers to go online and share their recent customer experience. This is how companies gain information on customer service and customer expectations. Businesses today are smarter than they were 30 years ago because they understand the customer better. The internet, combined with more intelligent marketing practices has given companies the tools they need to better understand the customer. They realize that customers have options in today's marketplace and have very little loyalty. In order to keep customers, companies need to give them valuable products. As product become similar and prices more competitive, customer service plays a significant role in customer value. People find value in having customer service members demonstrate patience, empathy and product knowledge when serving them. These often make the difference in customers' purchasing decisions. In the end, the value of good customer service can be the deciding factor between competing products or services.