Small businesses lacking customer care

One in five small firms admits to having lost customers due to poor service, according to a survey of customer management by YouGov. 

The survey also found that almost a quarter of those polled had 'forgotten' or 'missed' important appointments, and one in 10 admitted to avoiding customer calls.

Paper filing systems and the lack of a customer relationship management (CRM) system are the culprits, according to Microsoft, which sponsored the survey. 

This conclusion was based on the finding that 39 per cent of firms are at least partly reliant on paper-based filing systems, while 24 per cent are filing data in private diaries or notebooks. One in five said that they rely on their memory to log recall customer information.

On a more positive front, 60 per cent said that the whole company was responsible for keeping customers happy, and 21 per cent said that all staff members have frequent dealings with customers.

John Coultard, director of small business at Microsoft, said: "Big firms may have entire departments handling customer calls, which can be impersonal. Smaller firms can offer a personal touch, but they need to have access to timely information on a customer's dealings with the firm."

Some 30 per cent of respondents indicated that if they had more up-to-date customer information they would contact clients more often, perhaps suggesting a growing market for customer management products.

However, in a European survey conducted by Salesforce.com in January this year, the UK came top for customer service. But of those surveyed only around a third felt that their CRM systems had lived up to expectations. 

Finally, the survey revealed what many of us already suspect: the more important a customer is, the better the level of service. Almost 30 per cent of respondents said that they prioritise customers that spend the most.