Benchmarking customer service on the internet: best practices from family businesses

Purpose – The importance of using the internet to achieve competitive advantage has been well‐documented. An ever‐expanding array of technologies exist that enable firms to accomplish customer service online. Yet for many firms, determining which applications to employ can be perplexing. This study purports to examine the practices of service sector market leaders and measure performance results of adopting selected customer service applications. The aim was to identify inspirational targets and internet applications benchmarks among family owned businesses since for them, the importance of reputation may well hinge on providing outstanding customer service to the local community. Design/methodology/approach – A six‐page self‐administered survey questionnaire was used to collect data from 374 family firms in West Michigan. Findings – Findings suggest that while over 75 percent of firms use e‐mail to communicate with current customers and for customer service purposes, what distinguishes best practices is e‐mailing with prospective customers, targeting small or hard‐to‐reach markets, and adopting more sophisticated applications, including online product demonstration, ordering, delivery, and order tracking. Research limitations/implications – Since, this study focused on family firms in the service sector, future research opportunities could come from examination of the impact of family business‐related characteristics on customer service strategy and practices, and comparison across industry sectors or markets served (B2B versus B2C). Originality/value – The paper should be useful for academic researchers and business practitioners seeking guidance in terms of which e‐business applications to employ.