Does caring give Finnish customer service the competitive edge?

Customer service in Finland has become a crucial factor in creating a competitive advantage, especially in a globalised economy. As customer expectations have increased and technology has transformed customer interactions, the importance of excellent customer service has grown.

Customer service online, offline, and abroad

Research indicates that Finland performs above average in customer service quality and is recognised for its friendliness and reliability. However, speed and technology use, such as chatbots (Retail TouchPoints 2022), need to improve. To meet international standards, Finland should adopt technological solutions. The US and UK also excel in customer service but focus on different areas: the US on personalised service and innovative technology and the UK on overall customer experience improvement (Toister 2015). These practices provide valuable models for Finland.

Salesforce’s (2022) report highlights the evolution of electronic customer service, noting that customers now demand quick and personalised responses through digital channels like chat services and social media. The report reveals that 86 % of customers are willing to pay more for excellent experiences, making customer service a critical competitive advantage. Challenges include lacking personal service and inadequate technology, leading to dissatisfaction and mistrust. Heinonen’s (2024) research emphasises the importance of integrating caring in chat services to enhance customer experience. Combining technology with human interaction is crucial for effective service.

The concept of “caring” in customer service

Caring, which involves recognising and responding to customer needs and emotions, is essential to customer service. This concept is fundamental in chat services, where no physical interaction exists. Heinonen (2024) highlights that caring is manifested through empathy, politeness, and active customer contact, which increase customer satisfaction and loyalty. Caring also involves anticipating customer needs and personalised communication, creating a sense of appreciation and care. This improves the customer experience and increases their engagement and likelihood to recommend the service. The positive emotional connection created through caring can be a decisive factor in a company’s competitive advantage, especially in a digital environment where human interaction is limited.

Image 1. Caring also means personalised communication. (geralt 2015)

Customer service as Finland’s competitive edge

Integrating caring into customer service could be Finland’s competitive edge, in addition to investments in technology. Customer service personnel should be trained to recognise and respond to needs personally and effectively, using empathy, politeness, and quick responses to build trust. Continuous training through role-playing, feedback, and reflection is crucial to creating a customer service culture where caring is a core value, enhancing service quality and maintaining competitiveness.

Author

Johanna Heinonen is a Senior Lecturer at LAB University of Applied Sciences. She is particularly passionate about studying how digital tools and applications could be used more efficiently. She defends her PhD about co-creational elements of caring in chat-based customer service encounters in September 2024.

References

geralt. 2015. Altmann, G. Nainen, nuori, kuulokkeet, palvelun. Pixabay. Cited 17 Jul 2024. Available at https://pixabay.com/fi/illustrations/nainen-nuori-kuulokkeet-palvelun-851446/

Heinonen, J. 2024. Caring matters: Co-creational elements of caring in chat-based service encounters. Dissertation. University of Eastern Finland. Not yet published.

Retail TouchPoints. 2022. Top 10 Countries With Best Customer Service. Cited 17 Jul 2024. Available at https://www.retailtouchpoints.com/resources/top-10-countries-with-best-customer-service

Salesforce. 2022. State of the Connected Customer. Cited 17 Jul 2024. Available at https://www.salesforce.com/eu/resources/research-reports/state-of-the-connected-customer/

Toister, J. 2015. Which Country Offers the Best Customer Service? Cited 17 Jul 2024. Available at https://blog.cyracom.com/ciiblog/comparing-customer-service-which-country-takes-the-best-care-of-its-customers