Information Sheet 1.1.

1 Importance of Effective Communication in Customer

Service

Learning Objectives:
At the end of this module, students/trainees MUST be able to:
1. Understand the importance of effective communication in customer service.
2. Explain how communication helps in understanding customer needs.
3. Discuss the advantages of efficient communication for companies.
4. Describe the disastrous results of poor communication in customer service.
5. Assess the impact of poor communication on customer loyalty and sales.
6. Explain the importance of omnichannel communication.
7. Identify key steps for improving communication in customer service.

Introduction
The customer is the heart of any business. Customers are like the
pillar of a successful business. If the pillars are strong the building
will last long. In the same way, if a strong relationship is
established with the customer through effective communication the
business will last long.

Communication is an art. Communication is the way through which we can understand

the needs of the customer. Effective communication is the way which keeps a customer
for long. This communication might be in the form of a letter, email, phone call, or in
person.

Effective communication skills include the understanding of the mindset, doing the right
talk at the right time. When we talk about effective communication skills, one’s speaking
should be clear, compelling, efficient, and polite.

Customer service is a crucial element of a company’s strategy. It is

one of the most important contact points with customers and a key
opportunity to create a positive experience for them. Customer
service involves many aspects, but communication remains the
most important factor for establishing a strong and enduring
relationship. Efficient communication can help resolve problems
more quickly, in a way that is more satisfying for both the customers
and the agent, to provide valuable information and respond to questions, which can lead
to greater customer satisfaction and loyalty. By contrast, poor communication can have
disastrous results, such as unhappy customers, negative reviews, and lower sales. The
numbers speak for themselves: According to one study, close to 70% of customers have
quit a brand due to poor customer service. In this article, we are going to explore in
detail the importance of communication in customer service, the advantages of efficient
communication for companies, and the mistakes to avoid.

Customers invest their hard-earned money in your products and services, expecting
nothing less than your full attention when they reach out with a question, issue, or
service request. If prioritizing them is not always possible, the very least you can do is
maintain transparency.

Transparency — especially around the steps you take to resolve their issues — paired
with timely and proactive communication, can make all the difference.

A poor service experience, often rooted in communication gaps, is one of the leading
reasons customers become frustrated or disengaged. Believe it or not, effective
communication can solve half the battle — turning potential customer dissatisfaction
into loyalty.

Importance of Customer Service

Customer service is a crucial element of a company’s strategy. It is one of the most
important contact points with customers and a key opportunity to create a positive
experience for them. Customer service involves many aspects, but communication
remains the most important factor for establishing a strong and enduring relationship.
Efficient communication can help resolve problems more quickly, in a way that is more
satisfying for both the customer and the agent, to provide valuable information and
respond to questions, which can lead to greater customer satisfaction and loyalty. By
contrast, poor communication can have disastrous results, such as unhappy customers,
negative reviews, and lower sales. The numbers speak for themselves: According to
one study, close to 70% of customers have quit a brand due to poor customer service.
In this article, we are going to explore in detail the importance of communication in
customer service, the advantages of efficient communication for companies, and the
mistakes to avoid.
1. Good communication builds trust. When your customer service team
communicates effectively, they develop trust with clients. Clear, concise
communication helps customers feel confident their needs are understood, and
your team is working toward a solution. Whether it is an email, phone call, or
face- to-face interaction, customers who feel they are in good hands are more
likely to give you, their trust. Your team’s communication with customers will go
toward the customer experience—and this has real business implications. You
have more chances of getting repeat business from around 88% of customers
with a positive customer experience, and 59% will even recommend you to a
friend.
2. Poor communication loses customers. Poor customer service communication
skills can and will lose your customers. Inconsistent information, delays in
responses, or lack of empathy can make customers feel unheard,
misunderstood, or like they are not valued. These problems usually lead to
poor communication in customer service or lack of active listening. Customers
today expect fast, accurate, and thoughtful responses. When they do not
receive that, they are quick to lose trust and take their business elsewhere. If
you want to maintain customer loyalty and keep them happy, equip your team
with effective communication skills.

3. Poor communication creates frustration. The heart of customer service is

problem-solving, and this is where excellent communication skills shine. A team
with strong customer service communication skills can ask the right questions,
understand the issue thoroughly, and provide clear, actionable solutions. This
reduces back-and-forth, speeds up resolution time, and leaves customers feeling
satisfied. Without the right vocabulary and communication strategies, your team
may struggle to convey information clearly. When your team cannot effectively
understand or explain things, simple issues can snowball into major frustrations.
In the end, the customer feels dismissed, the issue remains unresolved, and
everyone’s time is wasted. It is a lose-lose situation. Proper customer service
communication skills training ensures your team can manage these situations
smoothly, diffusing tension and solving problems quickly. Remember, a well-
communicated solution can turn a negative experience into a positive one.

4. Good communication personalizes the experience. A whopping 91% of

consumers are more likely to shop with brands that remember their preferences
and provide relevant offers. When it comes to customer service, personalized
communication makes the difference between customer satisfaction and loyalty.
Great communicators can adapt their communication styles to suit different
customers, making each interaction feel personalized and special. By training
your team in effective communication in customer service, you are equipping
them with the skills to create these tailored experiences. Doing so shows
customers they are valued individuals.

5. Great communicators can adapt their communication styles to suit different

customers, making each interaction feel personalized and special. By training
your team in effective communication in customer service, you are equipping
them with the skills to create these tailored experiences. Doing so shows
customers they are valued individuals.
 6. Poor communication feels robotic and impersonal. When communicating with
customers, the last thing you want is to sound like a grumpy robot replaced you.
Canned responses, an inability to go off-script, and failure to notice customer
cues create the perfect recipe for impersonal interactions. This lack of customer
service communication skills training can leave customers feeling like they are
not being heard or understood. We are not saying automated responses and
chatbots have not earned their place in the customer service experience—we
know they make processes so much more efficient. But when customers talk to
humans, they expect a level of personalization and empathy that goes beyond
scripted answers. Communication with customers must lead to a better
understanding of the customer’s needs and ensure excellent customer service
delivery.

7. Good communication enhances team collaboration. Your team’s customer

service communication skills do not just translate to positive external
communications. They also create a cohesive experience internally. When
employees communicate effectively, they share information, coordinate
responses, and ensure every customer is overseen consistently and has a
positive experience. Whether it is a handoff from sales to customer service or
collaboration between support and technical teams, great communication leads
to a more streamlined service experience for the customer and less stress for the
team. Clear communication between departments also ensures everyone is
aligned, preventing miscommunications that could affect customers. Good
communication improves customer outcomes and strengthens the team’s
performance.

8. Ineffective communication harms your brand. Poor communication with

customers does not just affect individual interactions, it can tarnish your entire
brand reputation. When customers experience inconsistent messaging,
unresponsive service, or unclear explanations, they associate these failures with
your brand. Even one poorly handled customer complaint can lead to negative
reviews and a tarnished brand image, which can easily snowball into lost
business. Around 86% of people hesitate to do business with a company if it has
too many negative customer reviews. Before that happens, equip your team with
the best skill to manage customer inquiries professionally and empathetically—
communication.

Impact of Poor Communication on Customer Service

89% of customers have already left a brand after a poor communication experience.
This statistic shows to what extent the professionalism of customer service and the
quality of conversations represent a critical challenge for brands. Poor communication,
missing information, and a lack of kindness can have negative, sometimes prohibitive,
effects on customer relationships and loyalty.

Poor communication affects customer satisfaction. Unclear, mixed, and

contradictory communication can leave a customer confused, frustrated,
and dissatisfied, leading to a loss of trust. The customer may feel
misinformed, misunderstood, or deceived, which leads to less trust in
your company. According to HubSpot, 33% of customers have stopped
buying from a brand due to poor communication. In addition,
NewVoiceMedia states that companies lose 62 billion dollars every year due to poor
customer experience. Finally, according to an Accenture study, a poor customer
experience can cost companies up to 1.6 billion dollars per year.

There is a direct link between the quality of the communication offered and cost
optimization. Inefficient communication can lead to repeated and useless exchanges
and cost time and energy for both customers and agents, leading to lower productivity.
In addition, poor communication can lead to errors, misunderstandings, and legal
issues, creating additional costs.

Lacking communication can lead to more customer complaints. According to an

Accenture study, 52% of customers admit to having left a brand due to multiple contacts
needed for the resolution of a single problem.

Lastly, poor communication can also damage the brand image of your company.
According to a study conducted by Customer Thermometer, 59% of customers stated
that communication quality had a negative impact on their brand perception.

Advantages of Good Communication for Customer Service

Poor communication can strongly impact customer loyalty, customers’ brand perception,
and your revenue. Conversely, good communication can drive your sales. According to
Accenture, companies that offer exceptional customer experience can see up to a 17%
increase in sales. American Express adds that customers are also willing to pay on
average 17% more to companies that offer excellent customer service.

Efficient communication contributes to faster problem resolution, which lowers costs for
a company. On average, according to a study conducted by Fonolo, a call to customer
service costs a company $6. If a problem is not resolved right away, this can lead to
extra calls and transfers, increasing this cost.
Good communication with one’s customers must be organized but also humanized!
75% of customers expect their problems to be resolved during their first contact with
customer service. According to Forrester, 69% of customers prefer to resolve a problem
themselves rather than contacting an agent. According to HubSpot, 90% of customers
wish for 24/7 accessibility to service. Self-service tools and chatbots can help resolve
problems more quickly and reduce costs for a company. This is why configuration is
important: like your agents, a chatbot represents your brand.

Concerning the brand, good communication can lead to an improved image. According
to a Forbes study, 84% of customers believe that clear communication is a key factor for
their trust in a company. In addition, 68% of customers are more likely to recommend a
brand that offers excellent service to its customers.

Communicating well with your customers also allows you to better understand them,
better understand their needs and expectations, and offer personalized service. A
Forrester study showed that customer-centric companies experienced brand growth at
five times the rate of their competitors that were less customer-centric. Understanding
your customers also allows you to avoid certain issues, or, if they arise anyway, to
resolve them more quickly.

The Importance of Omnichannel Communication

Customers have more and more communication channels available to them to contact
brands: phone, email, chat, social media, etc. To meet their expectations, customer
service departments must adopt an omnichannel approach. This means that they must
be capable of communicating with customers on all channels in a clear and
personalized way. Seamless communication is essential since it offers an easier
conversation and less customer effort. Customers today expect an easy and
transparent communication experience.

Efficient omnichannel communication allows your customer service teams to resolve

problems more quickly, reducing costs for the company. An Aberdeen Group study
found that companies offering omnichannel communication to their customers enjoy a
retention rate of 89%–almost double the rate experienced by companies offering just
one communication channel.

Following customer comments closely is also important for calming negative

experiences that some may have. Around 40% of customers turn to social media to
express their frustration with poor customer service. In this case, communicating well is
essential. It is important to adopt efficient communication that is adapted to the
situation.
• Before responding, take the time to understand the customer’s situation. Show
him that you are listening to him and understand his point of view.
• Remain calm and professional: even if the customer is unhappy or insulting, stay
calm and respond professionally. Remain polite and courteous, even if the
situation is tense.
• Give him options that can meet his needs and expectations.
• Be quick.
• Use the customer’s name and personalize your response to show that you are
truly interested in his situation.

Five Mistakes to Avoid in Customer Communication

Efficient customer communication is essential for maintaining a
healthy and long-lasting relationship with customers. With that said,
certain mistakes can harm this relationship or ruin it completely.
1. Not listening to the customer. It is crucial to listen attentively to a customer’s
needs and concerns to offer him personalized and adapted service.
According to Microsoft, 59% of customers believe that companies do not listen to
them enough. In addition, 66% of customers believe that listening is the most
important aspect of a positive customer experience, according to Salesforce.

2. Not responding quickly. Customers expect quick answers to their requests.

According to a HubSpot study, more than 90% of customers expect a response
in the 10 minutes following their request on social media. BVA indicates that
when customers contact a brand by phone, 59% of them expect it to be handled
in less than a minute. When they contact customer service by mail, 78% expect a
response that day. 65% of customers expect a response within the hour of
contacting a brand on social media.

3. Using an inappropriate tone. Using an inappropriate or condescending tone can

anger customers. They may feel insulted, unappreciated, or ignored, which can
lead to lower customer engagement and satisfaction.

4. Lacking clarity. Customers must easily understand all information given to them.
Using professional jargon or complex language can frustrate customers. A
Nielsen Norman Group study found that clarity is the most important
characteristic for a successful user experience. In addition, Communication
Solutions point out that 42% of customers have declared that unclear or
contradictory communications were their greatest point of frustration during a
brand interaction.
 5. Not following up on promises. It is important to keep your promises when they
are made. Breaking promises can reduce customer trust in your company. 68%
of customers state that their frustration is due to a lack of clear communication
from a company on actions taken, according to an Accenture study. In addition to
frustrating customers, not following up on promises can lead to lower customer
satisfaction, impact on loyalty, and potentially lower revenue. Label Insight says
that 94% of customers are loyal to a company that is transparent with them.
Salesforce adds that 84% of customers believe it is very important that
companies oversee their engagements professionally and transparently.

By avoiding these mistakes, companies can improve their customer communication and
maintain a trusting relationship with their customers. To achieve this, it is important to
understand common mistakes and implement efficient communication practices.