08.02.2024

Small companies and providers, big expectations

Customers are placing more and more value on first-class service quality and an outstanding customer experience. Expectations are particularly high for smaller companies or service providers, such as Internet service providers and municipal utilities. The higher expectations of small companies can be attributed to several factors, which are generally related to the size and structure of these companies. What are the expectations of small companies and what are their reasons? We took a closer look.

Customers see considerable advantages in cooperating with small companies

A survey by Zendesk revealed that almost all (98%) see enormous advantages in cooperating with small companies. The respondents see the greatest advantage in customer service. A full 63% say that customer service at small companies is better and more personalised than at large companies.

In addition to better customer service, respondents cited other advantages of choosing a smaller company:

Ease of building relationships (48%)

Comfort (32%)

Availability of unique solutions (35%)

And let’s not forget the good feeling of supporting smaller companies and thus contributing to society (49%).

Customers expect a better level of service

However, it has long been clear that simply supporting a small company on the basis of its size is not enough to maintain long-term loyalty. Customers are demanding. They have high expectations of service quality. Most respondents expect small companies to provide better customer service than traditional large providers. A differentiated expectation of the customer service of smaller companies may be due to the following factors:

Perception of customer proximity

Smaller companies are often associated with “proximity”. Customers expect personal and professional interaction that is tailored to their individual needs. The assumption is based on the belief that smaller companies or providers have the opportunity to maintain closer contact and offer specific services due to their limited customer base.

Perception of professionalism and error prevention

Customers often assume that smaller companies are less prone to errors due to their size. They often assume that, due to a simple and limited company structure, services can be offered without major bureaucratic hurdles, responsibilities are clearly defined and repairs can be carried out quickly and easily. This also includes the fact that, due to the limited customer base, customers assume that their problem is extremely individual and an isolated case, so that they are prioritised when their concerns are dealt with.

Demand for flexibility and smooth processes

Accordingly, customers demand the flexibility and agility of smaller companies. They expect these companies to respond more quickly to enquiries and be able to respond more flexibly to individual requests.

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Expectations of communication channels: self-service is becoming a must-have

For small businesses that want to stand out by offering excellent customer service, opportunities are opening up through the use of new digital channels. There is a clear increase in interest in digital channels, regardless of the size of the company in question. A clear trend is emerging for both simple information requests and more complex enquiries: self-service.

While larger organisations may have a reputation for using more technological innovations in customer service, this doesn’t stop customers from looking for smaller companies that offer self-service options, for example. Of these, 80 % of respondents stated that they generally always try to find a solution using self-service options before they want to deal with customer service in person. This trend is slightly above the average for all company sizes.

Summary:

For small companies, good customer service can be a clear competitive advantage
Communication and self-service solutions are important for small business customers
The advantages that customers value in cooperating with small companies are not enough if the quality of service is disappointing

Conclusion

Customers are willing to support smaller companies, but with the proviso that they also receive good customer service (see Zendesk study). Zendesk is confident that by investing in outstanding customer service, smaller companies can respond to pricing pressure from larger organisations and differentiate themselves by offering excellent service quality.