customer service

Customer service is the provision of labour and other resources, for the purpose of increasing the value that buyers receive from their purchases and from the processes leading up to the purchase. With the rising dominance of the service sector in the global economy, customer service has grown in importance, as its impact on individuals, households, firms, and societies has become widespread.

History of Customer Service

The modern concept of customer service has its roots in the craftsman economy of the 1800s, when individuals and small groups of manufacturers competed to produce arts and crafts to meet public demand. The advent of mass production in the early 20th century, followed by an explosion in the demand for goods after World War II, increased the power of suppliers at the expense of consumers, and thus reduced the importance of customer service. A shift in this balance began in the 1970s, as international competition increased, and the dominance of western manufacturers was challenged, first by Japan, then by Korea, China and other developing economies. Producers responded by improving the quality of their products and services.

The economic boom of the 1990s again increased the power of suppliers who, while not completely reverting to lower standards of service, were able to be more selective of which customers to serve, and of what levels of service to provide. Self Help:.