Customer Service and Warranties

The human element of a firm; a measure of how well it meets and exceeds the expectations of customers in all aspects of its operations. Businesses must ensure that all touch-points (places where the customer interacts directly with a firm) are well considered and resourced.

Customer service includes enquiries, sales service, provision of information, friendly and professional staff, responsive and prompt, anticipates needs, delivers on time, follows through on promises, responds quickly and respectfully to complaints / issues, and listens to customer feedback.

Customer service is critical as it can build lasting relationships and brand loyalty, can permit a firm to charge a premium price, can result in fast growth, obtain free marketing through word-of-mouth; resulting in sales and profitability.

A firm’s pledge to correct any defects or problems with their products or the services they produce. Consumer law is very pro-consumer, and every consumer has the right of return; warranty or not.

Warranties are implied in a consumer's purchase but they can also act as a risk-mitigating factor in final decision making of consumer. They remove final obstacles to purchase, increasing sales and profits.

Warranty claims are an indication of customer dissatisfaction and the rate of defects in a product. Producing defective goods is a double-hit to a business’ profits and performance; the business has spent money creating both products, but only received half the money and has also caused grief (negative experience) for the customer.