Customer Service and Satisfaction: A Management Analysis Report

This report explores the fundamental difference between customer service and customer satisfaction, positing that customer service is the cause and customer satisfaction is the effect. It highlights the importance of excellent customer service in achieving customer satisfaction and fostering business growth. The report discusses various factors contributing to exceptional customer service, such as acknowledging customers, building trust, recognizing needs, and resolving issues. It emphasizes that customer service is a critical determinant of success in today's competitive business environment, leading to customer loyalty and repeat business. The report uses examples like Walmart and AT&T to illustrate how companies invest in customer service to enhance customer experience and differentiate themselves in the market. The conclusion reinforces that high-quality customer service is essential for creating customer loyalty and achieving marketing objectives. The report includes cited references for further research.

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Introduction
The major difference between customer service and customer satisfaction relies on the
fact that the former is a cause, whereas the other is the outcome of that cause. So et al. (2016)
have noted that offering excellent customer service is a source whose result is customer
satisfaction. Van Vaerenbergh et al. (2014) have identified several factors that constitute
exceptional customer service that results to customer satisfaction. Moreover, the highly vital
factors are to cordially acknowledge the customer, establish trust and rapport and further
recognize needs as well as suitably resolve issues and concerns by expressing appreciation for
the opportunities to serve the customer. The thesis statement of the paper is customer service is
the cause, while customer satisfaction is the effective outcome.
Discussion
Customer service is the cause, while customer satisfaction is the effective outcome
Customer satisfaction is the effect of the consumer having exceptional customer service
experience. According to So et al. (2016), it is highly vital for customers to attain the feeling of
importance while receiving any services and acknowledged suitably. Customer services which
primarily aim to offer relevant options to clients and proficiently resolve the demands and
requirements at the first place tend to accomplish greater customer contentment, thus leading to
business growth. These services show high competence in providing prospects to serve diverse
range of clients. Fang et al. (2014), it is important to note, with the increasing rate of
competitiveness in business, companies have considered customer service as a determinant factor
between success and failure and the quality of the customer service provided. Reports of authors

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have revealed that satisfied customers show greater propensity to be loyal customers seeking
repeated services and spending more during each visit.
Importance of Customer Service
Van Vaerenbergh et al. (2014) have claimed that customer service is identified as a
provision of services to customers before, during and after a purchase or a range of activities in
order to improve the level of customer satisfaction that is regarded as a feeling that a product or
service has attained the customer expectation. As per reports, since almost 2 years, Walmart has
invested profoundly in providing its U.S. store workers substantial pay increase and bonuses in
addition to advanced training services in the hope of humanizing long lagging customer scores
(Wahba, 2016). Additionally, Walmart has been combining its physical stores with its significant
e-commerce services to offer its customers with utmost flexibility and convenience to shop
when, where and the way they want to purchase products. Walmart’s enduring investments in
online grocery, such as Walmart.com and Samsclub.com along with other new investments in
Jet.com can be identified as few instances of the way the company is intending to evolve to offer
customers.
Different aspects of Customer Service
Different businesses depend on different clients. Some organizations accentuate on
current client relations, whereas others contribute time in sourcing new business. Fang et al.
(2014) have revealed that AT&T values the connection that is built from every partnership.
Secondly, the significance of quality customer care services is evaluated in financial
terms. Thus, maintaining the association with a current customer costs significantly less than
attaining a new one. As a result, substantial rate of company’s relies on repeat business. AT&T,

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being a market leader, shows direct result of persistent team initiatives to offer most effective
customer support.
Thirdly, the key to succeed in a competitive market relies on the differentiation from the
others. Companies with efficient customer service not only make an exceptional position from
the rest owing to its trusted services, but also because of the reliable customer services.\
Conclusion
To conclude, customer service is identified as one of the most significant components of
the marketing mix for products as well as services. Enhanced quality customer service facilitates
companies to create greater customer loyalty.

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References
Fang, Y., Qureshi, I., Sun, H., McCole, P., Ramsey, E., & Lim, K. H. (2014). Trust, satisfaction,
and online repurchase intention: The moderating role of perceived effectiveness of e-
commerce institutional mechanisms. Mis Quarterly, 38(2).
So, K. K. F., King, C., Sparks, B. A., & Wang, Y. (2016). Enhancing customer relationships with
retail service brands: The role of customer engagement. Journal of Service
Management, 27(2), 170-193.
Van Vaerenbergh, Y., Orsingher, C., Vermeir, I., & Larivière, B. (2014). A meta-analysis of
relationships linking service failure attributions to customer outcomes. Journal of Service
Research, 17(4), 381-398.
Wahba, P. (2016). Making Workers Happy Is Paying Off for Walmart. Retrieved from:
http://fortune.com/2016/06/02/walmart-employee-satisfaction/

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