Finding new customers is much more expensive than retaining existing ones.

Customer service is more than just keeping customers happy. It is about the continuous generation of revenue. A lost customer means lost revenue and an unhappy customer can damage the reputation of the business.

Effective customer service is:

• understanding customers' needs
• delivering superior service
• continual contact and follow-up.

In a competitive marketplace it makes sense to provide superior service. Customers base purchasing decisions on values like the service they receive, not just price, quality and availability. Business owners should ensure everyone involved in the business shares a commitment to superior customer service.

It is a good idea to:

• build superior customer service into the business.
• incorporate customer service strategies into the business and marketing plans.
• develop a culture that reflects commitment to good customer service and make sure customers know about it.