Why “Good” Customer Service Isn’t Good Enough: Challenging Business Owners and Leaders to Strive for Excellence

In the ever-competitive marketplace, customer service is often hailed as the cornerstone of business success. Yet, despite this recognition, many business owners and leaders seem to settle for what they perceive as “good enough” customer service. Why does this mindset prevail? Why do some businesses stop short of striving for excellence in customer experience? And what would it take for them to elevate their standards and embrace customer service excellence as the non-negotiable benchmark?

Let’s explore these questions, delving into the potential barriers, attitudes, and priorities that shape this all-too-common approach.

Is “Good” Really Good Enough?

When business owners declare that their customer service is “good,” what does this mean? Often, it implies that customers’ basic needs are being met. Issues are addressed, complaints are resolved, and products or services are delivered within acceptable standards. But is this enough to inspire loyalty, generate glowing reviews, or foster word-of-mouth recommendations?

Consider this: how many times have you continued to patronise a business simply because it met your expectations? Contrast that with a time when a business truly “wowed” you—exceeding expectations in ways that left a lasting impression. Which experience would you more readily share with others?

The truth is that “good” customer service may keep a business afloat, but it’s rarely the catalyst for growth or a distinctive reputation. So why do many leaders stop at “good” when “excellent” is within reach?

Why Does This Attitude Persist?

Several factors could explain why business owners and leaders accept “good” customer service as sufficient. Let’s examine the most common ones.

1. Cost Concerns Many believe that striving for customer service excellence requires significant financial investment—hiring more staff, offering extensive training, or implementing cutting-edge technology. In an era where margins are under pressure, these costs might seem prohibitive. But is this perception accurate? While some improvements do come with a price tag, excellence in customer service often stems from cultural shifts and consistent leadership—both of which can be achieved with minimal expense. Do leaders underestimate the long-term ROI of delivering exceptional experiences?
2. Lack of Awareness Business owners might not realise the gap between their perception of service quality and their customers’ actual experiences. It’s easy to assume that no news is good news, especially if complaints are minimal. But how often do satisfied customers voice their concerns—or their praises? Could a lack of customer feedback systems be masking opportunities for growth?
3. Complacency or Attitude For some leaders, “good” might feel like a win, especially if the business is operating profitably. Why fix what isn’t broken? This attitude can breed complacency, where efforts to improve are seen as unnecessary or even burdensome. But is this mindset sustainable in a competitive landscape where customers have increasingly high expectations?
4. Misaligned Priorities Customer service excellence often competes with other priorities—sales targets, product development, or operational efficiency. If leaders don’t see an immediate or quantifiable impact from improving customer service, it might not make the cut on their to-do list. Are these leaders failing to connect the dots between stellar customer experiences and long-term profitability?
5. Pain Threshold Businesses often prioritise change only when faced with pain or discomfort—declining sales, negative reviews, or high customer churn. If these issues haven’t reached a critical level, customer service excellence might not seem urgent. Does this imply that some leaders need to “feel the heat” before recognising the value of putting customers first?

Good vs Excellent: What’s the Difference?

The distinction between “good” and “excellent” customer service is vast.

• Good customer service is reactive—it solves problems when they arise and ensures customers leave reasonably satisfied.
• Excellent customer service is proactive—it anticipates needs, personalises experiences, and turns customers into advocates.

For example, consider a hotel that promptly addresses a guest’s complaint about a noisy room (good service) versus a hotel that offers a personalised welcome note, remembers the guest’s preferences, and pre-empts potential issues before they arise (excellent service). Which one leaves a lasting impression?

Striving for excellence doesn’t just improve customer satisfaction—it fosters loyalty, strengthens brand reputation, and increases revenue. So why do businesses resist this shift?

What’s Holding Leaders Back?

Achieving customer service excellence requires more than just good intentions. It demands a commitment to continuous improvement, cultural change, and alignment across the organisation. Here are some common hurdles:

1. Fear of Change: Change can be intimidating, especially for businesses with entrenched processes or long-standing practices. Leaders may fear that pursuing excellence will disrupt operations or create resistance among employees. How can they overcome this fear and foster a culture of adaptability?
2. Lack of Vision: Without a clear understanding of what “excellent” customer service looks like, it’s hard to aim for it. Leaders need a vision that inspires their teams and resonates with their customers. Do they have the right role models, resources, or benchmarks to guide them?
3. Short-Term Thinking: Excellence often involves playing the long game, which can be challenging for businesses focused on immediate results. Leaders might prioritise quick wins over transformative initiatives. How can they balance short-term demands with long-term aspirations?
4. Employee Engagement: Customer service excellence starts from within. If employees aren’t engaged, motivated, or well-trained, delivering exceptional experiences becomes an uphill battle. Are leaders investing enough in their people to create a service-oriented culture?

From Good to Great: What Needs to Happen?

So, what would it take for business owners and leaders to embrace customer service excellence as the standard?

1. Shift the Mindset: Leaders must recognise that customer service isn’t a cost centre—it’s a profit driver. By reframing service excellence as an investment rather than an expense, they can unlock its full potential.
2. Prioritise Feedback: Actively seeking customer and employee feedback can reveal blind spots and opportunities for improvement. Leaders should implement systems to regularly capture and act on insights, ensuring they stay attuned to evolving needs.
3. Create a Vision of Excellence: A clear vision, supported by measurable goals and benchmarks, can help businesses move from good to great. This vision should be communicated consistently, rallying employees around a shared purpose.
4. Invest in Training and Development: Employees are the frontline of customer service. Equipping them with the skills, tools, and autonomy to deliver exceptional experiences is critical. Leaders should view training not as a one-off expense but as an ongoing journey.
5. Celebrate Successes: Recognising and rewarding excellent customer service can reinforce positive behaviours and motivate teams to strive for greatness. Leaders should celebrate small wins as stepping stones towards larger goals.
6. Measure What Matters: To ensure progress, businesses need metrics that align with their vision of excellence—whether it’s Net Promoter Score (NPS), first time resolution, customer retention rates, or employee engagement scores. What metrics are leaders currently tracking, and do they reflect the true customer experience?

The Case for Excellence

The businesses that thrive in today’s marketplace are those that refuse to settle for mediocrity. They understand that good customer service may keep the doors open, but excellence sets them apart. By prioritising customer experience, these businesses build loyalty, attract new customers, and create a resilient foundation for growth.

Ultimately, the question isn’t whether businesses can afford to strive for customer service excellence—it’s whether they can afford not to. As competition intensifies and customer expectations rise, those who fail to adapt risk being left behind.

So, to business owners and leaders: where do you stand? Is your customer service merely good, or is it truly excellent? And if it’s the former, what’s holding you back from making the leap?

The journey from good to great may require effort, but the rewards—loyal customers, motivated employees, and a reputation that speaks for itself—are well worth it. Are you ready to take the first step?

For more top tips and ideas we invite you to join our FREE 30 minute training video designed to ensure you and your teams continue to deliver remarkable customer service.? Just click on the link in the comments below.

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