What is customer service management? (Tools and benefits)

By Indeed Editorial Team

Published 11 July 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Happy customers contribute to the success of a company. Maintaining customer satisfaction is important for ensuring a business remains profitable and continues to grow. Learning about customer service management and how you can use it to monitor the needs and feedback of clients can help you to improve a company's reputation and sales. In this article, we discuss the key elements of a customer service management system, explain the benefits of using one and give tips for improving customer service.

What is customer service management?

The answer to 'What is customer service management?' is that it involves using a technological customer relationship management (CRM) system to track customer engagement with a company. It also involves tracking engagement with customers by members of the service management team. Recording this information on a system provides an overview and deeper insights into the experience customers have with a company.

It highlights their concerns and suggestions and allows teams to view the information in one place. Professionals in sales and marketing use this data to improve existing products and services. It's also useful to gather information from existing customers when planning future offers and marketing campaigns.

Related: Q&A: what is customer service and why is it important?

Customer service management tools

Depending on its needs and size, a company may use one or a variety of customer service tools to keep track of several metrics. These tools may include options for gathering feedback and logging customer complaints and responses. They can also provide customer support and track the delivery of products and services. Some tools that companies use for customer service management include:

CRM software

CRM software can adapt to suit industries. For example, a delivery service may require a system that both people in the office and delivery drivers who are on the move can use. It provides an organisational service that records interactions with customers and logs information about orders and deliveries. A CRM tool can record suggestions, comments and complaints. It hosts customer details in one place, making it easy for employees to locate the information. This ensures that there's no interruption in service. It's also compliant with data protection policies.

Lead magnet software

A lead magnet is a useful tool that a business can offer to new customers. It may be a guide, a free trial, an e-book or a video series. It's something that the audience finds helpful and provides them with a reason to sign up for a service. Lead magnet software offers companies an engaging way to present a lead magnet to a potential customer by displaying it attractively on a webpage. It also gathers emails, tracks opening rates of the offer and sends follow-ups if the potential customer didn't download their free tool.

Workflow management tool

It's important to have a system that hosts and manages all queries that customers lodge on different channels. If a customer messages a business on its social media page, they expect a quick response. If the business only checks this account once a week, then the level of service is lower than the customer expects. Having all these queries in one system allows the customer service team to view and manage requests in one place, leading to faster resolutions.


Large companies may use artificial intelligence (AI) chatbots to deal with new customers. This is a common feature on social media channels. The AI chatbot can help with basic customer queries. It can also redirect the customer to someone on the customer service team if the query is more complex. A chatbot may work via text or voice. It can operate on social media platforms or company websites and offer solutions to simple problems.

Social media

Social media is a tool that helps businesses reach out to a potential customer base. It also allows companies to engage with customers in a fun way. Customers can lodge complaints on a social media feed or via a direct message. It's important that social media monitoring is a regular customer service activity. Most CRM tools include a workflow management capability. This logs the queries that customers submit through social media.

Marketing email software

Automating elements of the marketing process can save time and allow teams to focus on other priorities. Using marketing email software regularly improves customer engagement. Companies can customise and schedule emails for different segments of an email list. Any marketing software requires compliance with data protection, which means customers can only receive details about a product or service they signed up to. For example, if they subscribed for information about an insurance policy for new drivers, they can't receive emails about home or travel insurance. Similarly, they can't receive beauty product information, as this wasn't what they subscribed to.

When a new customer subscribes to a company's newsletter, it triggers a marketing email automation series. This can include a series of emails that educates the new customer about the products and services the company offers. Typically, a company arranges for the software to send three emails over a set period. The final email may be an offer for a free trial of a product or an invite to a free training session. Its purpose is to engage new customers further with the business. It also helps to test different messages and their opening rates.

Related: How to write customer service emails (with examples)

Benefits of customer service management

Companies can avail of many benefits when they install a customer service management system. Finding new customers can be challenging, so maintaining existing ones is a priority. It involves building and maintaining a strong and consistent relationship. A good customer service management system can help a company build relationships and customer loyalty and achieve business growth. Here are some of its benefits:

  • Provides a central communication point: It provides a central point for all team members to get information on new and existing customers. It can schedule follow-ups and segment data.

  • Prioritises customer service: It makes customer service the priority of a company by helping it to manage customer requests and plan campaigns. Team members can schedule reminders on discussions about customer-focused activities.

  • Focuses on customer relationships: Building relationships with customers requires a consistent approach. Having a system that optimises and streamlines activities makes customer service easier to manage.

  • Enables timely responses: Responding to customers efficiently maintains strong relationships.

  • Serves as a knowledge centre: Having all the knowledge of a business's customers in one place helps to ensure efficient service. A business can deliver a customised product to a segment of its audience that's ready to receive it.

  • Improves customer retention: It helps a business to retain customers by maintaining communication and reminding the audience that it's there to service their needs.

  • Saves time: It saves time for staff, as performing customer service activities manually can be time-consuming.

  • Helps to develop strategies: Reports filter information so companies can base the creation of future strategies on previous data.

Related: 10 ways to consistently offer good customer service

Tips for creating better customer service management

Having a customer service management system helps a business to succeed. Yet having the right people to manage the system is just as important. Here are some tips for improving customer relationship management:

  • Provide in-depth training to new hires and update the training as elements of the customer management system change.

  • Ensure that team members actively listen to customers and log their feedback on the system.

  • Have a customer-focused day once per month or quarter where staff can suggest ways to improve the business or use information in a new way.

  • Create and update a customer-focused plan that receives input from all staff in the customer service department.

  • Outline the responsibilities of the team and their targets to keep motivation levels high.

  • Reward teams or staff members who go beyond the requirements to ensure excellent customer service.

  • Have a customer service master document that staff can follow, but also encourage them to use their own judgement.

  • Maintain knowledge of all the tools a customer relationship system offers.

  • Highlight examples of excellent customer service so staff can understand how important their role is in the business.

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