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Striving Space > Blog > Digital Marketing > CRM > 5 Customer Service Problems Costing Your Small E-commerce Business (and How to Fix Them)
CRM

5 Customer Service Problems Costing Your Small E-commerce Business (and How to Fix Them)

Boost e-commerce sales and customer satisfaction. Solve 5 problems that limit your growth.

Al Mansur
Last updated: July 26, 2024 10:32 am
By Al Mansur April 22, 2024
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Highlights
  • We will discuss five common customer service problems that can limit your growth, ranging from poor support to a lack of customer insights.

Running an e-commerce business can be quite demanding. To ensure that your business reaches its full potential, you need to address the common customer service issues that can hold you back. Even a single unresolved customer problem can quickly escalate into a major headache. That’s why having adequate support and organized information is important to prevent frustrated customers, lost sales, and missed opportunities. In this article, we will discuss five common customer service problems that can limit your growth, ranging from poor support to a lack of customer insights.

Table of Contents
1. Limited Customer Support2. Inefficient Knowledge Management3. Difficulty Handling High Volumes of Support Requests4. Lack of Customer Insights5. Reactive vs. Proactive SupportHow to Fix The Common Customer Service Problems for Small Business1. Customer Service Problems: Limited Customer Support2. Customer Service Problems: Inefficient Knowledge Management3. Customer Service Problems: Difficulty Handling High Volumes of Support Requests4. Customer Service Problems: Lack of Customer Insights5. Customer Service Problems: Reactive vs. Proactive Support1. Omnichannel Support 2. Customer Segmentation and Personalization3. Building a Customer Community4. Identifying Upsell/Cross-Sell Opportunities5. Improved Reporting and AnalyticsInvest in a Smoother Customer Journey
5 Customer Service Problems Hurting Your Small E-commerce Business (and How to Fix Them)

5 common Customer Service Problems, their root causes, when they occur, and the potential negative outcomes:

Disclosure: I may earn a small commission if you buy something through my links in this content. This helps support my work, but my opinions and reviews are independent, not influenced by any affiliate partnerships.

1. Limited Customer Support

  • Reason: Small e-commerce businesses often lack the staff and resources to dedicate to a full-fledged customer support team. Phone lines can be busy, emails unanswered, and timely solutions difficult to provide.
  • When: This problem becomes particularly apparent during peak hours, product launches, updates, or if there’s a technical issue that requires troubleshooting.
  • Negative Outcome: Frustrated customers, damaged brand reputation, decreased customer retention and loyalty, and ultimately, lost revenue.

2. Inefficient Knowledge Management

  • Reason: Information, solutions, and answers to common questions are scattered and disorganized. Staff may spend excessive time searching for the right information or reinventing the wheel instead of quickly resolving customer issues.
  • When: New product launches, staff turnover, changes to policies or procedures all make this problem more pronounced.
  • Negative Outcome: Longer wait times for customers, inconsistent support quality, frustrated staff, and the potential for missed sales opportunities due to an inability to provide quick solutions.

3. Difficulty Handling High Volumes of Support Requests

  • Reason: As small businesses grow, the number of customer inquiries and support tickets can quickly become overwhelming. Manual processes and a lack of automation tools make it difficult to keep up.
  • When: Seasonal peaks, successful marketing campaigns, or even unexpected virality can lead to a large influx of support requests.
  • Negative Outcome: Delayed responses, missed or lost tickets, customer dissatisfaction, and potentially the inability to capitalize on business growth due to support bottlenecks.

4. Lack of Customer Insights

  • Reason: Many small e-commerce businesses don’t effectively track, analyze, or utilize customer feedback. They miss valuable opportunities to understand customer pain points and proactively identify areas for improvement.
  • When: New product/service development, strategic changes in service approach, or any time the business wants to gauge customer sentiment.
  • Negative Outcome: Product/service misalignment with customer needs, missed opportunities to enhance offerings, potential for customer churn, and difficulty making data-driven business decisions.

5. Reactive vs. Proactive Support

  • Reason: Smaller teams, often stretched thin, tend to focus on firefighting problems as they arise rather than preventing them.
  • When: Ongoing, but becomes especially detrimental during growth phases or when dealing with complex products and services.
  • Negative Outcome: Higher customer support costs, a constant strain on resources, potential for increased customer churn, and a decreased ability to innovate due to always being in “reaction mode.
Fix customer service problems with HubSpot Service Hub

How to Fix The Common Customer Service Problems for Small Business

Let’s analyze how a CRM, like Service Hub by HubSpot’s, can directly address the problems we identified, focusing on a small e-commerce business scenario.

1. Customer Service Problems: Limited Customer Support

Solution Offered: One effective solution is to use a Service Hub which includes the following features:

  • Knowledge Base: A centralized repository of frequently asked questions (FAQs), troubleshooting guides, how-to articles, and videos related to ordering, shipping, returns, and other common customer concerns.
  • Help Desk Automation: Automated workflows can be set up to create tickets for customer inquiries, assign them to the right agent, and prioritize them based on urgency (e.g., for urgent tickets related to payment issues).

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Why It’s Effective: Implementing a Service Hub can be highly effective for several reasons:

  • Customers have access to self-service solutions and can find answers to their questions without having to contact support directly, thus reducing direct support volume.
  • Automation streamlines support processes, ensuring quicker and more efficient responses to customer inquiries.

How to Apply (Scenario): Let’s take the example of Emily, who runs a small e-commerce store selling handmade jewelry. She could create a knowledge base with articles on sizing, materials, care instructions, and common shipping questions to help her customers find the answers they need quickly and easily.

Emily could also set up automation so that an order confirmation email automatically triggers a support ticket, ensuring immediate tracking and response to any customer inquiries.

Positive Outcome: Emily can reduce the burden on her limited support staff, resulting in happier customers who receive faster answers to their questions.  More focus on other areas of her business, knowing that her customers are being taken care of efficiently and effectively.

2. Customer Service Problems: Inefficient Knowledge Management

One of the common problems faced by businesses is inefficient knowledge management. This can lead to customer frustration and a lack of consistency in responses.

Solution Offered: To address this issue, a robust knowledge base can be created within the Service Hub. This centralized, easily searchable resource can help both customers and staff to find the information they need quickly.

Why It’s Effective: Having a centralized knowledge base reduces the time spent searching for answers. This helps in ensuring consistency in responses and avoiding repetition. 

How to Apply (Scenario): For instance, Emily’s e-commerce store can add a comprehensive returns section that includes detailed policy, step-by-step instructions, and printable return labels. This information can be added to the knowledge base for easy access by customers and staff.

Positive Outcome: Businesses can provide faster and more efficient support to customers, empower their staff, and reduce the time wasted on repetitive questions.

3. Customer Service Problems: Difficulty Handling High Volumes of Support Requests

Solution offered: Help desk automation (ticketing, routing, prioritization).

Why it’s effective: Automating the help desk process streamlines the support request handling process, even during sudden influxes of inquiries. Automatic prioritization ensures that urgent issues are addressed quickly.

How to apply (Scenario): Emily owns a jewelry store that experiences a viral social media moment. By setting up automation, tickets about missing orders or payment errors get routed immediately to qualified staff for resolution.

Positive outcome: Implementing the help desk automation solution helps manage the support requests during growth, reduces customer frustration, and enables scaling without support becoming a major bottleneck.

4. Customer Service Problems: Lack of Customer Insights

Solution offered: Integrating customer feedback surveys with the Service Hub.

Why it’s effective: By directly collecting feedback from customers on their product preferences, shipping experiences, website usability, and more, actionable insights can be obtained. This allows for data-driven decision-making.

How to apply (scenario): Emily sends a post-purchase survey to customers requesting feedback on their checkout experience and suggestions for desired product styles. The results are then populated within the Service Hub dashboard.

Positive outcome: Identification of improvement opportunities, alignment of products/services with customer needs, and increased customer loyalty through feeling heard.

5. Customer Service Problems: Reactive vs. Proactive Support

One of the biggest problems faced by customer support teams is handling reactive support rather than proactive support. Reactive support involves responding to customer tickets that are raised when they experience an issue with a product or service. This can be time-consuming and can put a strain on the support team’s resources.

Solution Offered: To address this issue, companies can implement proactive support through the use of a Knowledge Base and self-service resources. By creating a Knowledge Base that contains detailed information about products or services, companies can help customers solve common issues independently. This prevents tickets from ever being created and reduces the support volume, freeing up the support team to focus on more complex needs.

Why It’s Effective: Implementing proactive support through a Knowledge Base and self-service resources is effective because it enables customers to solve their own problems, thus reducing the support workload. This, in turn, provides more time for the support team to focus on more complex tasks and business growth initiatives. Additionally, by providing detailed information upfront, companies can establish a reputation for great customer service, making purchasing decisions easier for customers.

How to Apply (Scenario): For example, Emily’s e-commerce store invests time in creating detailed product descriptions with photos and videos upfront in the knowledge base. By doing so, common questions about fit or material are answered even before a purchase happens. This not only reduces the number of support tickets raised but also provides a positive customer experience, which can lead to increased sales and customer loyalty.

Positive Outcome: Implementing proactive support through a Knowledge Base and self-service resources can lead to a decreased support workload, more time for business growth initiatives, and a reputation for great customer service. This, in turn, makes purchasing decisions easier for customers and can result in increased sales and customer loyalty.

5 Customer Service Problems Costing Your Small E-commerce Business (and How to Fix Them)

Some other ways a Service Hub can create significant value for a Small Business

1. Omnichannel Support 

A Service Hub can integrate various communication channels like live chat, email, social media messaging, and phone, ensuring that customers can easily reach the business through their preferred method.

For example, Emily’s e-commerce store can add a live chat widget and integrate Facebook Messenger. Customers can get quick pre-purchase questions answered or receive order status updates easily.

2. Customer Segmentation and Personalization

Data from the Service Hub can help businesses segment and target customers based on their preferences. Support interactions, knowledge base usage patterns, and survey responses provide valuable insights.

For instance, Emily can use the data to understand her customers’ preferences, such as frequent knowledge base searches about ring sizing and feedback surveys indicating a desire for half sizes. She can then expand her product line accordingly and create targeted email campaigns for relevant customers.

3. Building a Customer Community

A Service Hub can be the foundation of a customer community, such as a forum or discussion board hosted within the knowledge base. This can help build brand loyalty and encourage potential buyers.

For example, customers of Emily’s jewelry can share care tips, style suggestions, or showcase photos of themselves wearing the pieces.

4. Identifying Upsell/Cross-Sell Opportunities

The Service Hub tracks customer support history, enabling the team to proactively offer relevant add-on products or suggest upgrades when helpful.

For instance, if a customer contacts support about a necklace chain that broke, the agent can reference the customer’s purchase history and suggest a more durable chain option.

5. Improved Reporting and Analytics

A Service Hub centralizes data and offers reporting on support volume, ticket resolution times, customer satisfaction scores, etc., helping businesses optimize support operations.

For example, Emily can review her reports and notice a consistent spike in questions about a particular product on Mondays. She can realize that the product description is lacking clarity and update it to be more informative, decreasing the need for future support.

Note: The effectiveness of a Service Hub in these areas often relies on its seamless integration with your existing e-commerce platform and other business tools (email marketing, etc.).

Hubspot CRM free demo

Invest in a Smoother Customer Journey

We have discussed how common customer service problems such as limited customer support, inefficient knowledge management, and reactive support cycles can significantly harm your e-commerce business. These problems might result in unhappy customers, missed sales opportunities, and a damaged brand reputation. Prioritizing a positive customer experience is no longer a choice; rather, it is essential for long-term success.

We have earlier talked about implementing the comprehensive solution using HubSpot’s CRM platform to empower your customers, streamline your support operations, and gain valuable insights to continuously improve your offerings.

HubSpot CRM is not just a basic ticketing system. It provides a user-friendly platform with features specifically designed to address the unique needs of small businesses like yours. Here’s what sets HubSpot CRM apart:

  1. Easy to Use: You don’t need extensive technical knowledge to use HubSpot. It offers a clean, intuitive interface that simplifies managing your customer interactions.
  2. All-in-One Platform: Manage your knowledge base, automate tickets, and gather customer feedback – all within a single, integrated hub.
  3. Scalable Solution: As your business grows, HubSpot CRM scales with you, ensuring you have the tools needed to maintain exceptional customer service.

Ready to See How HubSpot CRM Can Transform Your Customer Support?

Are you interested in exploring how HubSpot CRM can enhance your customer support? HubSpot offers a free demo of their all-in-one CRM platform, which includes a full range of Service Hub features. You will have a dedicated team member who will provide a personalized walk-through of the capabilities and answer all your questions to help you understand how HubSpot CRM can transform your customer interactions, streamline your support operations, and empower your small business to grow. 

Don’t hesitate to take advantage of this opportunity to give your customers a seamless and exceptional experience that will keep them coming back for more. Schedule your free demo today and start taking action to make your customers happy!

GET A FREE DEMO
TAGGED:HubspotCustomer Relationship ManagementCustomer Service
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