Small businesses could significantly increase their profits by delivering good customer service and responding to customer queries promptly, according to a new survey.
The report, commissioned by T-Mobile UK, reveals that small businesses have lost at least four customers each over the past 12 months, with each equating to a loss of profit of almost £5,000.
Over a third of respondents cited a lack of responsiveness to queries as the main contributor to poor customer service, which suggests that small businesses need to focus on communications with customers to avoid further losses, T-Mobile says.
The research suggests that, although nearly two thirds of small businesses invite customers to provide feedback on their services, only one in five provide staff with customer service training and only one in three respond immediately to complaints.
Derek Williamson, head of business marketing at T-Mobile UK, said: “Evidence suggests that larger competitors are much quicker to respond to customers and this is a significant threat for small firms.”
Although over half of respondents thought that small firms are the best at providing customer service, Williamson warns that speed of response needs to be addressed in order to remain competitive, and minimise the financial impact of customer losses.
© Crimson Business Ltd. 2006