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Customer Service is King: Why Investing in Customer Service is Key for Retail Success

Investing in customer service is a key strategy for retailers looking to increase sales and revenue. In today's competitive marketplace, customers have more options than ever, and retailers must work hard to attract and retain them. Providing exceptional customer service can be a powerful way for retailers to stand out from the competition and build strong customer relationships. In this blog, we'll explore the importance of investing in customer service and provide examples of how retailers can do so.

The Importance of Customer Service

Customer service is a critical factor that influences a customer's decision to purchase from a retailer. In fact, according to a survey by PwC, 73% of customers say that customer service is an essential factor in their purchasing decisions. Retailers that invest in customer service are more likely to attract and retain customers, increase their sales and revenue, and build a loyal customer base.

Excellent Customer Service

In addition, providing excellent customer service can also lead to positive word-of-mouth marketing. Customers who have a positive experience with a retailer are more likely to recommend it to their friends and family. This can help retailers to attract new customers and build their brand reputation.

How Retailers Can Invest in Customer Service

There are many ways that retailers can invest in customer service to improve their sales and revenue. Here are some examples:

a. Hire and Train Customer Service Representatives

One of the most important ways to invest in customer service is by hiring and training customer service representatives. These employees are the face of the company and are responsible for interacting with customers and addressing their needs and concerns. Retailers that hire and train skilled and knowledgeable customer service representatives can provide a positive customer experience and build strong customer relationships.

b. Provide Multiple Channels for Customer Support

Another way to invest in customer service is by providing multiple channels for customer support. This can include phone, email, live chat, and social media support. By providing multiple channels, retailers can make it easy for customers to get the help they need, no matter where they are or what time it is.

c. Personalize the Customer Experience

Personalizing the customer experience is another effective way to invest in customer service. By collecting data on customer preferences and behavior, retailers can tailor their marketing and customer service efforts to meet the needs and preferences of individual customers. For example, a retailer might use data to recommend products to customers based on past purchases or send personalized promotions based on browsing history.

d. Use Technology to Improve Customer Service

Technology can also be a powerful tool for improving customer service. For example, retailers can use chatbots to provide 24/7 support to customers or use artificial intelligence to analyze customer data and make personalized recommendations. By using technology to improve customer service, retailers can provide a fast and efficient customer experience while reducing costs and improving their bottom line.

Examples of Retailers Investing in Customer Service

Many retailers already invest in customer service to improve their sales and revenue.

Here are some examples:

a. Zappos

Zappos is a well-known online retailer famous for its exceptional customer service. The company offers free shipping and returns, a 365-day return policy, and a 24/7 customer support team. Zappos also has a strong company culture that emphasizes the importance of providing excellent customer service, which has helped to build its reputation as a customer-focused retailer.

b. Nordstrom

Nordstrom is another retailer that is known for its exceptional customer service. The company offers various services, including free personal stylists, alterations, and curbside pickup. Nordstrom also has a strong focus on employee training and development, which helps to ensure that its customer service representatives are knowledgeable and skilled.

c. Amazon

Amazon is one of the largest online retailers in the world, and the company has built its success in large part by investing heavily in customer service. Amazon's customer-centric approach includes:

  • A focus on fast and free shipping.

  • A vast selection of products.

  • A robust customer review system that allows shoppers to make informed purchasing decisions.

In addition to these core features, Amazon has also invested in technology to improve its customer service. For example, the company uses machine learning algorithms to recommend products to customers based on their browsing and purchase history. Amazon has also introduced chatbots and virtual assistants like Alexa to provide fast and efficient customer support.

One of the most innovative ways that Amazon has invested in customer service is through its Amazon Go stores. These brick-and-mortar locations use a combination of sensors, cameras, and other technology to create a frictionless shopping experience. Customers can simply walk into the store, grab what they need, and walk out without stopping to pay. The entire shopping experience is seamless and efficient, which has helped to create a positive customer experience.

The ROI of Investing in Customer Service

Investing in customer service can have a significant return on investment (ROI) for retailers. According to a survey by Oracle, 86% of customers are willing to pay more for a better customer experience. This means that retailers that invest in customer service can command a premium price for their products and services, which can improve their profitability.

In addition, investing in customer service can also lead to increased customer loyalty and repeat business. According to a Harvard Business Review study, customers

with the best past experiences spend 140% more than those with the poorest past experience. This highlights the importance of providing a positive customer experience, as it can significantly increase customer lifetime value.


In today's competitive retail landscape, investing in customer service is essential for retailers looking to increase sales and revenue. By hiring and training skilled customer service representatives, providing multiple channels for customer support, personalizing the customer experience, and using technology to improve efficiency, retailers can build strong relationships with their customers and create a positive shopping experience. This can lead to increased customer loyalty, repeat business, and higher profits. Ultimately, retailers that prioritize customer service are more likely to succeed in today's competitive marketplace.


About the Author: Ilka Jordan

Ilka Jordan is a passionate and experienced transformation executive with a proven track record of success. Specializing in business strategy, innovation, and technology, Ilka is a strategic thought leader in her field. With her collaborative approach and talent for identifying opportunities for improvement and designing effective solutions, she has helped guide companies through successful transformations across retail value chains..

As the founder and CEO of Jordan Alliance Group, a boutique management consulting firm, Ilka is committed to delivering exceptional results for her clients. Her team of experts specializes in process optimization, change management, and technology implementation. As a minority-owned, women-led firm, JAG is one of the first of its kind in the industry, and Ilka is proud to lead a team that shares her commitment to excellence.

Ilka is also a DBA student, continually developing her craft and staying at the forefront of her field. Her expertise has benefited many high-profile enterprises, and she is dedicated to ensuring the success of your company's transformation efforts. Contact Ilka today and experience the transformative power of her strategic thought leadership.


Jordan Alliance Group (JAG) Management Consulting Firm.

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JAG helps companies navigate the ever-changing business landscape by providing strategic insights, transformational tools, and expert guidance. With our proven methods, we can help you adapt and thrive in an ever-evolving market, so you can stay ahead of the competition and achieve sustainable growth.

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