The secret weapon in business: Exceptional customer service

Many organisations devote most of their resources and efforts to product development and business expansion. We explain why that's a mistake.
Written by
Sean Riordan
Published on
February 20, 2024
The secret weapon in business: Exceptional customer service

Research from Salesforce says that a surprising 88% of customers say good customer service makes them more likely to purchase again, regardless of other factors.

Despite this, many companies still treat customer service and issue resolution as secondary priorities.  

They devote most of their resources and efforts to product development and business expansion, overlooking the fact that the customer experience extends far beyond the initial purchase or subscription.

This article explores how exceptional customer service can act as a differentiator for your brand, alongside offering critical insights into business challenges.

The Value of Exceptional Customer Service For...

Customer Retention

According to Hubspot Research 67% of churn could be stopped if the customers’ query is solved on the first interaction.

Customer service can act as a first line of defence for companies. That first interaction gives the opportunity to listen actively to your customers and show you provide a solution that improves their overall experience with your brand.

Brand Differentiation  

Forbes found that 1 in 4 people would be willing to spend 10% more on a product if they know the customer service is good. Helping reduce the need for ultra-competitive pricing and allowing more margin on products or services.

In saturated markets exceptional customer service can be a brand differentiator with the ability to position and add a price premium which will increase your margins.

This advantage becomes particularly significant in industries where product offerings are largely homogeneous and consumers make choices based on the quality of service received, rather than on product features alone.

It can also provide an advantage to new companies, who can provide fantastic customer service from day one and become known in the market for it before competitors inevitably enter.

Word-of-Mouth Marketing

Word-of-mouth is an extremely powerful thing for any business.

Nielson found 88% of consumers said that they trusted recommendations from people they know, above all other forms of marketing messaging.

This can make your company less reliant on traditional marketing to drive new customers, and can provide a safety net in economic down turns where your reputation becomes more important to price conscious customers.

Transformative Impacts on Customer Loyalty  

Building Emotional Connections

A study by Dobrev found emotional attachment was the biggest driver of business value, being responsible for about 43% of total value. This compared to product features at around 20% of total business value.

This value can be delivered by a great customer service experience.  

A good experience creates a positive memory and when the customer comes back a second time or a third time and has similar experiences, the memories of those interactions become an owned experience.  

The customer expects it. They know it’s going to happen, just like last time. That’s where the relationship starts to solidify, with a consistent and predictable experience.

Great customer service that is consistent has the ability to provide a powerful emotional connection with customers.

Long-Term Benefits

The long-term benefits of an emotional connection are increased lifetime customer value, lower churn and increased loyalty to your brand.

The Harvard Business Review found that an emotional connection between a customer and the organization is 52% more valuable than a highly satisfied customer.

Connected customers could be more likely to make valuable referral recommendations both in person and online.  

Driving Business Innovation Through Customer Interactions

Feedback Loop  

Customer service channels serve as a critical feedback loop, offering direct insights from customers that are essential for product innovation.  

Interactions with customers, whether through support calls, emails, or social media, provide raw, unfiltered feedback on what is working well and what isn't.  

This immediate input can be invaluable in identifying pain points and areas for enhancement.  

For example, Microsoft uses customer feedback from its support forums and feedback hubs extensively to refine product features and user interfaces in its software development cycles.

Ability in Problem-Solving  

Companies that excel in customer service demonstrate greater agility in problem-solving.  

This agility allows them to adapt quickly to new market demands and implement improvements effectively.  

A customer-first approach ensures that businesses are not just reactive but also proactive in addressing issues that could impact customer satisfaction.

Customer-Centric Strategies  

Tools such as Net Promoter Score (NPS) surveys, customer satisfaction scores, and real-time feedback systems are invaluable.  

Second, empowering employees to make customer-centric decisions by providing training and appropriate autonomy can lead to more personalized customer experiences.  

Lastly, aligning organizational KPIs with customer satisfaction metrics ensures that customer-centricity is embedded within the strategic framework of the business, driving all operations toward enhancing customer value.


Prioritising and effectively managing customer service inquiries can significantly elevate your business, offering benefits that extend well beyond securing repeat customers.

Enhanced customer service not only bolsters customer retention but also provides invaluable insights that allow your teams to refine your offerings and drive sustainable growth.  

At Distinction, we are staunch advocates for exceptional customer service, a commitment we have upheld for over 20 years.

If you have a business problem that you want to talk through, get in touch today.

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