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Small businesses fail to capitalize on their unique customer service advantage

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Less than half (40%) of consumers find that small businesses offer a more personalized customer service experience than larger corporations, according to a new report from FM Outsource, Small Business Customer Service in 2023: A Missed Opportunity?

He investigationwhich investigated whether small businesses are meeting customer expectations, found that the majority of consumers (60%) feel that larger businesses offer a higher quality of customer service in a variety of key areas where smaller businesses smaller companies should have a natural advantage.

Perhaps unsurprisingly, given their comparative resource constraints, only 40% of those surveyed think that small businesses resolve their complaints faster than larger companies.

But just 39% of people said small businesses seem to care more, despite challenges like the cost-of-living crisis hurting profits.

Additionally, only 37% said they believe small businesses are more likely to go the extra mile to resolve a problem, and less than a third (32%) said they are more flexible when they come to an agreement on a problem.

Martin Brown, CCO of FM Outsource, commented: “While larger companies often have the advantage of having more resources to invest in their customer service, smaller companies should, in theory, have their own advantage in being able to offer more flexible and personalized service to their customers. Research shows that many are unfortunately not doing this and may experience negative consequences as a result.”

The research also revealed the business implications of poor customer service with only (41%) saying both small and larger businesses would be equally likely to leave a negative review after a poor customer service experience.

Martin continued: “The research really emphasizes that small businesses cannot afford to rest on their laurels when it comes to customer service. Consumer expectations are continually rising, and it’s clear that there is a real risk that small businesses will suffer negative reviews online, and an associated loss of customers, if they fail to meet those expectations.

“What can really set a brand apart from its competitors is the way it treats and communicates with its customers. Great customer service is vital to all brands, and yet at a time when it should be the top priority, it’s falling short. Companies at both ends of the scale can realistically deliver outstanding customer service, but only if they see it as a priority and not an afterthought.”


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