In business, the Pareto principle—better known as the 80/20 rule—suggests that 80% of your sales often come from just 20% of your customers. When such a small group drives such a large share of revenue, keeping them satisfied becomes crucial. That’s where exceptional customer service makes all the difference.

In this article, we’ll break down what defines exceptional customer service and share practical ways to deliver it in your business.

What is customer service?

Customer service is the support a business provides to its customers before, during, and after a purchase. It’s about meeting their needs, answering questions, and resolving concerns in a way that creates a positive experience and builds lasting loyalty.

Today, customer service can take many forms—from in-person assistance and phone calls to email, live chat, social media, and even AI-powered chatbots. Many companies also dedicate entire customer service teams to ensure satisfaction and strengthen relationships with their customers.

Why is customer service important for a business?

Excellent customer service is more than just problem-solving—it’s a growth driver. Done well, it fuels brand loyalty, boosts revenue, and provides valuable insights straight from your customers.

Customer retention and loyalty. A single bad experience is often enough to send customers packing—more than half say they’d leave after just one, according to a 2023 Zendesk report. On the flip side, an Oracle study found that 73% of customers remain loyal to companies that deliver positive support interactions. Exceptional customer service creates experiences people want to return to.
Increased revenue. Great service pays off. Research shows that companies that prioritize customer service are 60% more profitable than competitors who don’t. By delivering value and trust, you open the door to repeat purchases and new business.
Improved branding. Word of mouth travels fast, especially on social media where positive (or negative) experiences are often shared publicly. Brands like Apple, Disney, and Amazon have built reputations for excellent customer care—and that reputation is a big part of their continued success.
Collecting feedback. Every customer interaction is an opportunity to learn. Whether feedback is glowing or critical, it can guide company-wide improvements and highlight what’s working. Using customer insights effectively can mean the difference between keeping and losing valuable clients.

How to Improve Customer Service: 9 Tips

Training employees in customer service skills and creating a service plan are essential first steps. But how can you take your existing systems to the next level? Here are nine practical tips to strengthen your customer service, boost satisfaction, and set your business up for long-term success:

1. Streamline returns and exchanges

A simple, stress-free return process is one of the fastest ways to build customer loyalty. Offering incentives like free returns, pre-paid packing labels, or convenient drop-off points shows customers you value their time and trust. In fact, a 2021 PwC report found that 31% of shoppers rank a “good return policy” among their top three concerns when choosing where to buy online.

If you’re a Shopify merchant, returns and exchanges can be managed directly from your dashboard. With built-in tools, you can create a process that’s efficient, reliable, and designed to keep customers coming back.

2. Increase automated servicing

Many customers today prefer quick, self-service options over waiting on hold for a support agent. Tools like chatbots, searchable Q&A sections, and knowledge bases (digital libraries with product or service information) empower customers to find answers on their own. The most effective systems are intuitive, easy to navigate, and designed for speed—leading to faster resolutions and happier customers.

On Shopify, integrating automation is straightforward. You can set up a chatbot with Shopify Inbox or explore Shopify-compatible apps from the App Store. Popular options include Zendesk Chat, Zowie, Certainly, and DeepConverse. Most providers offer free trials, though ongoing subscriptions typically run into the hundreds per month.

3. Personalize customer care

Personal touches go a long way in shaping a positive customer experience. Simple actions—like using a customer’s name, sharing relevant details when transitioning between team members, and following up after an issue is resolved—help build trust and show that your business values each interaction.

Customer relationship management (CRM) software can take personalization even further by equipping your team with useful data, such as purchase history and location. For Shopify merchants, Shopify Inbox makes it easy to connect with customers in real time, guide them through product offerings, share discount codes, and manage returns or exchanges—all while they shop.

4. Take advantage of artificial intelligence (AI)

Artificial intelligence (AI) is transforming customer service by helping businesses reduce costs and work more efficiently. AI-powered chatbots can be embedded directly on your website to handle common queries around the clock, freeing up your team to focus on more complex issues. With natural language processing (NLP), these chatbots can understand and respond in a conversational way—making interactions feel more natural and boosting the chances of positive customer feedback.

5. Improve checkout and payment options

A seamless checkout experience is just as important as the products you sell. Modern point-of-sale (POS) systems—both regular and cloud-based—offer robust features like inventory management and built-in tools for gathering feedback through post-purchase surveys. Enhancements such as one-click checkout, secure payment processing, and intuitive interfaces that accept digital wallets and contactless payments make transactions faster and more convenient. These small improvements can significantly elevate the overall customer experience and encourage repeat purchases.

6. Use training courses

Investing in training courses is one of the most effective ways to strengthen your customer service. These programs help support teams develop essential soft skills such as communication, empathy, and problem-solving—while also teaching them how to use data-driven metrics like the customer satisfaction score (CSAT) to measure performance. By combining people skills with analytics, businesses can deliver more consistent, high-quality customer experiences.

7. Use data

Data-driven insights can transform the way you approach customer service. Tracking key metrics like average resolution time (ART)—the time it typically takes to solve a complaint, net promoter score (NPS)—how likely a customer is to return or recommend your business, and first contact resolution (FCR)—the percentage of issues resolved without escalation, gives you a clear picture of both customer sentiment and team performance. By monitoring these indicators, businesses can identify strengths, address gaps, and continuously improve the customer experience.

8. Gather feedback

Customer feedback is one of the most valuable tools for improving service. Chat-based apps make it easy to collect real-time insights about what customers appreciate, what they expect, and where your business can do better. You can also gather feedback through post-purchase surveys, follow-up emails, or by encouraging reviews on social media. By actively listening and acting on this input, businesses can strengthen customer relationships and fine-tune their service strategies.

9. Embrace an omnichannel customer service strategy

Omnichannel isn’t just for marketing—it’s equally powerful in customer service. By supporting customers across multiple channels such as social media, email, live chat, and phone, you create a seamless experience that meets people where they are. Research shows that companies with strong omnichannel engagement are 89% more likely to retain their customers, making it a proven driver of loyalty. Offering support on preferred platforms also opens the door to faster responses, stronger connections, and higher overall satisfaction.

Customer Service Training FAQ

What are the key elements of excellent customer service?
Excellent customer service comes down to solving problems with strong soft skills. Showing empathy, using positive and reassuring language, actively listening (and reflecting back what you hear), and communicating clearly all make a big difference. These strategies not only resolve issues effectively but also build loyalty and encourage positive reviews.

How can I better understand my customers’ needs and expectations?
Feedback tools such as automated checkout surveys (integrated through point-of-sale systems) are a great starting point for understanding customer expectations. You can also create a customer needs statement—a written outline of what your customers want from your business and industry. Putting these insights in writing helps you and your team evaluate how well you’re meeting expectations and identify areas for improvement.

What should I look for when hiring customer service representatives?
Interpersonal skills are the foundation of great customer service. Look for candidates who demonstrate:

Emotional intelligence (understanding and empathizing with others)
Strong written and verbal communication
The ability to de-escalate tense situations
Problem-solving and creative-thinking skills
Sound decision-making
Patience and professionalism

How can I train my employees to provide better customer service?
Customer service training courses—many of which are available online for free—are an effective way to upskill your team. These courses cover essentials like problem-solving, conflict resolution, and effective communication, along with training on customer relationship management (CRM) software. Beyond formal courses, set clear expectations, provide regular feedback, and encourage continuous learning to ensure your team consistently delivers positive customer experiences.

What are the most effective communication channels for customer service?
While phone support is still common, customers increasingly expect quick, convenient online solutions. The most effective channels today include:

Email
Live chat via websites
Social media through comments, direct messages, or messaging apps that support store management
Self-service tools such as searchable knowledge bases and online forums

How to Improve Customer Service: 9 Strategies for Business Growth