The success of your business rides on the wings of your customer service. Deliver more service than your customers expect, and your business will soar. Deliver less, and profits will plummet.

“In today’s hyper-competitive market, the ability to identify and satisfy customer needs isn’t the key to success—it’s the key to survival,” says Chris Bogan, CEO of Best Practices, LLC.

Great customer service translates into customer loyalty. And loyalty boosts your bottom line. It’s simple: Loyal customers buy more.

Loyal customers make bigger purchases. They purchase more often. They’re less price sensitive. Loyal customers form the foundation of your small business—whether you sell products, services or both.

“At a time when customer relationships are of utmost strategic importance for service providers, customer retention is crucial, “ says Abby Pinard, vice president of marketing services at Mobius Management Systems. “And good customer service is an effective way to stem the loss of customers. The bottom line is that good customer service isn’t only about customer retention; it’s about expanding the customer relationship.”

Loyal customers help your company grow because they refer others to your business. And word-of-mouth advertising is gold to small businesses.