What Is Customer Service Management? (With Benefits)

By Indeed Editorial Team

Published April 26, 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

The customer service department is generally an integral part of many businesses. It plays a significant role in enhancing customers' satisfaction and increasing a company's profit margin. Improving a customer service department can also help increase productivity and sales. In this article, we discuss what customer service management is, outline steps to effectively implement it, and explain the benefits of this business strategy.

What is customer service management?

Customer service management involves implementing effective strategies to ensure the proper administration of a customer service team. This team serves as representatives of the company and directly interacts with customers purchasing a product or service. They provide proactive assistance to customers to ensure the company meets their expectations. The duties of a customer service representative include building a practical customer service toolkit and identifying communication touchpoints. Providing customers with accurate and helpful information helps protect the image and reputation of the department and business as a whole.

How to implement effective customer service management

Developing and implementing an effective customer service system can be more manageable following these steps:

1. Hire employees with the necessary skill set

When recruiting and interviewing candidates for the customer service job position, it can be beneficial to select candidates with technical and soft skills. Technical skills are necessary to operate the customer management software and other appliances, while soft skills are a core requirement of a customer service representative. These skills can help them effectively communicate with customers, resolve their problems, and share relevant information with them. Here are some examples of the soft skills most commonly used in customer service management:

  • Communication skills: Good communication skills are necessary to interact with customers effectively. Understanding and resolving complaints can be more manageable with enhanced listening and verbal skills.

  • Problem solving: The duties of a customer service representative include helping customers resolve problems or directing them to the proper channels to get solutions to their problems. Problem-solving skills can help these professionals effectively develop ideas, answers, and strategies relevant to assisting customers.

  • Creative thinking: Creative thinking can help customer service representatives think fast and find solutions. Since customers' concerns may have only one or multiple possible solutions, this skill can help them adapt quickly and easily to the circumstances.

  • Teamwork skills: Customer service representatives typically work together with other departments to solve issues and concerns. Teamwork skills can help facilitate cooperation with customers and guide these professionals when resolving problems.

2. Define responsibilities of the customer service department

Giving the customer service representatives a clear and concise briefing of their responsibilities can help them carry out these duties productively. It's possible to delegate tasks so that every employee knows their responsibilities. For example, you can assign a few customer service representatives to handle inquiries concerning the company's product and delegate another set of employees to help customers troubleshoot a problem to find solutions.

It can be crucial to match specific responsibilities to employees with the expertise and experience necessary to handle the tasks when delegating duties and responsibilities. This can also help increase productivity and the overall performance of the customer service department.

Related: Relationship and Effect of Customer Service in Sales

3. Train the employees

Organizing frequent training sessions or sending customer service departments to training programs outside the company can help increase their work efficiency. It's also a way to keep them informed and expose them to new customer service technologies and software. Training can also boost morale and increase job satisfaction, making customer service employees feel valued and important. All of these factors can raise individual skill levels and overall performance.

4. Encourage communication with other departments

By establishing open communication with the customer service team and other departments, you can ensure consistent support and teamwork to achieve the company's goals. For instance, you can create an internal company blog where departments are free to share helpful information. This blog can facilitate knowledge sharing, such as customer orders, available supplies, or return orders. Open communications can also stimulate growth and progress as employees share ideas, strategies, and feedback that can increase productivity.

5. Adopt the use of customer service software

Using effective customer service software can help increase your management and productivity. This software can perform services like tracking customers' queries and providing fast solutions to problems. The use of software can help you retain existing customers as their issues may be resolved more quickly, increasing their experience and satisfaction at the same time. There are various tools, such as messaging applications and community forums, which you can adopt to improve customer service administration.

Related: What Is a CRM System? (Types, Features, and Benefits)

6. Set realistic key performance indicators (KPI)

You can monitor the efficiency and progress of the customer service team by setting realistic KPIs. One way to do this is to implement standards to measure performance metrics like average complaint resolution time and average customer satisfaction rate. With this information, you can devise ways and strategies to manage their performance and prepare bonuses and incentives for the best-performing customer service representative. You can also promise to reward employees who meet a stipulated target. This can help boost the performance of the team and their dedication.

7. Ask for feedback

This strategy is effective in increasing the productivity of the customer service department. You can interact with the department and ask them about the strategies they use to deal with customers and manage difficult situations.

Asking the team for their thoughts and opinions may show them you value their input, which can help build a positive team relationship. You can also ask customers for feedback. Incorporating their feedback into the management of customer services can help you make alterations that can lead to more sales and enhanced customer satisfaction.

Related:

  • Tips on How to Provide Good Customer Service (With Benefits)

  • What Are Client Services? Importance and Tips To Improve

What are the benefits of great customer service?

The following are widespread benefits of having an effective customer service system:

Boosts brand image

As the responsibilities of customer service representatives include answering customers' questions and handling their concerns, they're typically the first point of contact with the brand. When they interact and communicate with the customers effectively, it may leave a good impression. Encouraging the customer service team to maintain strong relationships with clients can have a positive impact on the public's feelings towards a business and its core values. This happens particularly when customers leave good reviews on the company's site or social media for potential customers.

Related: Customer Service Skills: Definition and Examples

Improves customer experience

It's possible to boost customer experience with a reliable and effective customer service team. This happens when customers get solutions to their problems or concerns. For example, if a customer gets a swift and helpful response for an issue they are having with a product or service, this level of efficiency can increase their overall experience. The services the customer service department renders are typically preferable and provide a better experience than the customer fixing their issues independently.

Gives a competitive advantage

Great customer service can give a business a competitive edge over its competitors. As it's typical to have several companies producing the same goods or offering the same service, building a solid relationship with clients can help them feel optimistic about the brand. For example, customers buying furniture often prefer going to a store with a reputation for excellent customer care. If something goes wrong with their purchase, it is more likely their issue will get a quick and helpful response.

Helps retain existing customers

Customers are likely to return to a brand when they consistently get effective solutions to their problems. The training, resources, and incentives you provide to your customer service team are typically effective in helping them build a solid relationship with clients. This results in satisfied clients who may be willing to buy new products or upgrades to existing products from the company. Having a customer service team that consistently gathers feedback from existing customers can help the latter feel they are important.

Increases profit margin

A positive image, competitive advantage, and consistently good customer service typically combine to increase the profit margin. High levels of customer satisfaction help create brand loyalty. This can raise the company's profit margin as customers continue buying the company's product. These customers are likely to get the company's product over a competitor's product because of effective customer service.

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