How Businesses Operate: Effect of Customer Service and Customer Profiling

This article discusses the importance of customer service in enhancing customer retention, brand image, and revenue. It also explores the benefits of customer profiling in identifying targeted audiences, improving communication, and evaluating market trends. The article is relevant to the subject of business operations and can be useful for students studying courses related to business management, marketing, and customer service.

How Businesses Operate

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK - 5..........................................................................................................................................2
Effect of customer service on success of business.......................................................................2
Advantages of customer profiling................................................................................................2
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4
Books and Journals......................................................................................................................4

INTRODUCTION
Customer service is the kind of service that is being provided by organisations to it's
customers (Gopal and Jacob, 2022). This service could be provided before purchase, at the time
of purchase and after purchase. The main objective behind providing this service is to enhance
customer experience and customer engagement.
TASK - 5
Effect of customer service on success of business
An effective customer service provided by the organisation leads in enhancing customer
retention rate, which is more cheaper than the acquisition rate of customers (Lim, 2018). The
cost for acquiring new customers are on higher side, with this it requires more efforts. A satisfied
customer will do word of mouth for organisation, which leads in enhancing brand image. As per
research more number of customers gathers when happy and satisfied customer do promotion for
them. The customers become loyal when they found that an effective customers service is being
offered by companies. Even the customers use to pay higher prices if they found that they are
getting better services. Some of the organisations are involved in providing proactive services to
it's customers, which is the most cost effective manner for acquiring more customers. Proactive
services means when the organisation takes initiation on it's own in order to provide better
services to make them feel satisfied. Customer wants to avail all channels through which they
can connect with organisations and these channels should be connected to each other, this is
termed as omni channel services. The organisation can even take competitive advantages by
providing better customer services. As number of companies provides it's goods and services but
due to lack of customer services, they use to switch to some other brand and here the company
offering good services leads in getting competitive advantage. The revenue of organisation starts
growing rapidly by getting good services. By having an enlarge customer base, other business
units also takes initiation to operate business activities with them.
Advantages of customer profiling
As per the nature or characteristics of customers the organisations, organises each
customer into different groups, this segmentation performed by organisations is termed
Customer Profiling (Othieno, 2022).

The organisations are able to identify the targeted audience by customer profiling. With
the help of customer profile the organisations can make effective communication with it's
targeted customer anytime, this boosts the rate of response (Spena, D’Auria and Bifulco, 2021).
When the organisations are able to understand customer demand then it become easy to acquire
more customer base. The data gathered from customer profiling helps the research &
development team of organisation to evaluate currents market trend and hence they will produce
it's products & services accordingly. The right customer can be pitch by companies for the
products produced by them. They will find it easy to evaluate which product should be produce
more and which should not be produced in future. The optimum utilisation of available resources
could be take place by creating customer profiling. The company will pitch products as customer
wants, this leads in enchasing customer satisfaction rate, along with increase in revenue. The
loyalty of customer towards brand also enhances as organisations are able to fulfil all
requirements.
CONCLUSION
From the above presentation, it can be concluded that providing an effective customer
service leads in enhancing the satisfaction level of customers. Enhancement in customer base,
satisfaction level of customer, brand image of organisation, even in revenue takes place by
providing adequate among of customer services. The customer profile helps in segmenting it's
customers according to their characteristics and nature. The organisations are able to find out
potential customer for the product and services offered by them.

REFERENCES
Books and Journals
Gopal, A.C. and Jacob, L., 2022, April. Customer Behavior Analysis Using Unsupervised
Clustering and Profiling: A Machine Learning Approach. In 2022 2nd International
Conference on Advance Computing and Innovative Technologies in Engineering
(ICACITE) (pp. 2075-2078). IEEE.
Lim, W.M., 2018. How can challenger marketers target the right customer organization? The
ACOW customer organization profiling matrix for challenger marketing. Journal of
Business & Industrial Marketing.
Othieno, J., 2022. Investigating service delivery and its impacts on customer
satisfaction (Doctoral dissertation, Busitema University.).
Spena, T.R., D’Auria, A. and Bifulco, F., 2021. Customer Insights and Consumer
Profiling. Digital Transformation in the Cultural Heritage Sector: Challenges to
Marketing in the New Digital Era, p.95.