Customer service

Getting existing customers to buy more from you is much more cost-effective than attempting to attract new ones, and providing excellent customer service is a good way of achieving this

Giving good customer service is something many small businesses are very good at. And the great thing about effective customer care is it doesn't have to be expensive.

According to Paul Cooper, communications director at the Institute of Customer Service, business owners are often hidden from the frontline. He believes it is vital to lead by example and to recruit people you think will be good at dealing with customers.

"Look for employees with the right attitude, who are going to empathise with customer complaints and queries," stresses Cooper.

"Ask potential recruits to highlight previous examples of what they did when dealing with a complaint. If they haven't got any customer service experience, ask what they would do in a particular circumstance. Recruit for attitude - you can always improve skills through training."

Take complaints seriously

Customers aren't really always right - despite the well-worn saying. But very few people take the time to complain, so when they do and if applicable, be grateful for the opportunity to improve your business.

Always thank the customer for their comments and apologise for any inconvenience caused. Listen attentively and then try to resolve problems as quickly as possible.

"Saying you're sorry isn't an admission of guilt on your part," Cooper explains. "Our research shows that customers don't mind if a business messes up occasionally, but its recovery needs to be brilliant."

Keep a log of all complaints and try to ensure you never make the same mistake twice.

Test your performance

Check your customer care performance continually. If you have employees, telephone your own business to find out how long it takes staff to answer and how they greet you. Consider how this reflects on your business.

Look at your website regularly to check that everything is working. If you work in retail, you could even ask someone you know to visit your business, and then ask them what they thought of the service they received.

"It can also be a good idea to set customer service standards, for example, saying that the phone should be answered in a certain amount of rings," adds Cooper. "However, these should be set with your own company in mind - you shouldn't just copy someone else."

Benchmark your business

Looking at what other businesses do when it comes to customer service and how they handle dissatisfied customers can give you pointers for your own company.

"Get out there and learn from others," Cooper advises. "It doesn't matter what sector you're in, you can still learn from any market leader when it comes to customer service."