“One upset customer doesn’t matter to me…”
Think again! They might be telling 20 others why they’ll never buy from you.
For MSMEs, every customer counts. That’s why solid customer service is your secret weapon.
In this blog, we’ll explore 21 challenges in customer service that MSME business owners face that could be draining your business without you even realising it.
More importantly, I’ll show you easy ways to turn things around so your customers stay happy (and loyal).
Ready to spot what’s hurting your business and fix it?
Let’s get started!
It doesn’t matter how amazing your product is or how competitive your pricing looks. If your customer service falls flat, people remember that more than anything else.
You don’t have giant marketing budgets or nationwide brand power to rely on. What you do have is word of mouth, and that only works if your customers walk away happy.
Great customer service…
On the flip side, a single bad experience, a slow reply, a rude response, or a messed-up follow-up can cost you repeat business and damage your reputation.
That’s why nailing your customer service is absolutely critical if you want steady sales and long-term growth.
Let’s break down these challenges in customer service and why they’re so common in small and growing businesses…
Your team is small, wearing multiple hats, and customer queries often get pushed down the to-do list. Without proper systems in place, even basic responses take longer than they should.
The longer a customer waits, the more frustrated they get, and in today’s world of instant everything, slow replies feel like you don’t care.
When customers are upset, they’re not always reasonable, and most MSME teams aren’t trained to deal with emotional or aggressive conversations.
Without a clear process or script, the situation often escalates instead of getting resolved.
Plus, let’s face it… Handling emotions while staying polite takes practice that most teams haven’t been given.
Unlike large companies, MSMEs often lack a dedicated support team. One person might be answering calls, replying to emails, and handling live chat simultaneously.
This leads to missed messages, long wait times, and poor customer experience, even if the intention was good.
Today’s customers expect Amazon-level speed, Zomato-level updates, and Netflix-style personalisation, even from small businesses.
But MSMEs don’t always have the technology or bandwidth to match those expectations, leading to disappointment and, sometimes, bad reviews.
Most MSMEs are so busy handling daily operations, they rarely pause to ask customers, “How was your experience active?”
Without surveys, calls, or even a quick WhatsApp follow-up, you’re left guessing what customers liked or hated. This means you keep repeating the same mistakes, just because no one flagged them.
In smaller businesses, sales, support, and delivery are often handled by different people or even outside vendors.
Without a shared system (like a CRM), one person doesn’t know what the other promised.
The result? Customers have to repeat their problems multiple times, which frustrates them and makes your business look disorganised.
Many MSMEs still rely on manual processes, such as complicated forms, endless phone calls, and back-and-forth emails, which all slow down the process.
Customers today expect easy, click-and-done interactions. If your process feels like a maze, they’ll quit halfway and probably not return.
Most small businesses don’t have systems that automatically greet customers by name, remember their last order, or tailor offers to their preferences.
Without tools that help you personalise, every interaction feels generic. And in a world where customers love to feel “seen,” that can be a dealbreaker.
Many MSMEs rely on outdated software or manage everything manually, using tools such as Excel sheets, personal phones, and notebooks.
This might seem cost-effective at first, but without proper tech (like a CRM or help desk software), things slip through the cracks.
They don’t get timely replies, data gets lost, and issues take forever to resolve customer concerns.
In small businesses, the same few people handle sales, service, follow-ups, sometimes even deliveries.
It’s exhausting. Over time, your team gets drained, customer conversations turn impatient, and service quality drops, not because they don’t care, but because they’re stretched too thin.
Most MSMEs focus heavily on getting new sales. That means staff are often pushed to close deals fast, with less emphasis on nurturing existing customers or handling after-sales and customer care problems well.
When customer service isn’t tied to your main goals, it naturally takes a back seat.
Customers can ask anything, “Can you customise this?” “Why did my bill jump last month?” “How does your return really work?”
Without a shared knowledge base or proper training, your team might stumble, provide incorrect information, or say, “I’ll get back to you,” which slows trust and resolution.
Small businesses often overpromise just to win their customers.
But when they don’t meet the expectations, let’s say the delivery took longer, or the support isn’t as smooth, customers feel let down.
Without consistency, even happy customers might hesitate to return.
It’s not just about having some tech. It’s about having the RIGHT tech. Many MSMEs invest in one-time tools that quickly become outdated or don’t integrate well.
So your team ends up switching between platforms, losing data, or manually updating everything, which means slow service and more mistakes.
Sounds obvious, but many MSMEs aren’t even sure what their biggest service problems are.
Without clear tracking, such as identifying which issues arise most frequently or which customers consistently complain, you can’t prioritise fixing what matters. This means the same nagging problems continue to hurt your business.
When something goes wrong, a tiny goodwill discount or freebie can turn an upset customer into a loyal one.
But many MSME teams don’t have the authority to offer these. So, customer care small problems escalate because your team’s hands are tied.
Should you focus on WhatsApp? Emails? Phone calls? Instagram DMs?
Most small businesses just say yes to everything, hoping to catch every lead. But without a plan, it becomes chaos. Some messages get answered, others slip through, and customers feel ignored.
Angry customers are part of the game, but small teams often aren’t trained to stay calm or diffuse tension.
So conversations quickly turn defensive or awkward, leaving the customer even more frustrated, and your team stressed for the rest of the day.
Without a proper CRM or shared notes, the first person who picks up often doesn’t have the answer.
So they transfer the call. Then it gets transferred again. And again. By the time the customer finally gets help, they’re exhausted (and annoyed).
India’s rich diversity means customers might speak Hindi, Tamil, Kannada, Marathi, or prefer English.
Small businesses usually have a team comfortable in just one or two languages, which sometimes leaves customers struggling to explain their problems or feeling misunderstood.
Sometimes customers ask things your team simply doesn’t know, whether it’s a technical detail, a future policy, or why a glitch happened.
In small businesses, there’s often no quick way to get these answers, so staff either give vague replies or keep promising, “We’ll get back to you,” which frustrates customers.
With data privacy becoming a hot topic, customers want to know how their information is used.
Most MSMEs don’t have clear policies or don’t communicate them well. So, even loyal buyers might feel uneasy sharing details, which quietly hurts trust.
Here’s how you can solve each of those 21 headaches we talked about.
When all your WhatsApp, Instagram, and email messages come to one place, your team doesn’t waste time checking five apps. A simple shared inbox or CRM helps you respond faster, keeping customers happy.
Teach your staff to listen, empathise, and apologise before jumping into solutions. Small scripts like “I understand why that’s frustrating. Let me fix this for you right away” calm things fast.
Even free tools let you assign, tag, and track chats or tickets. This way, no customer waits endlessly while your team scrambles to remember who said what.
Be honest about timelines and product capabilities. If you promise delivery in 5 days but get it there in 3, customers are wowed, not frustrated.
Use WhatsApp polls, Google Forms, or even a quick “Was everything okay?” call. This stops problems from growing in silence.
Keep order history, complaints, and notes in one place so every team member knows what’s going on. No more customers repeating their story to three different people.
Cut unnecessary steps. If customers need to fill out three forms, reduce it to one. Make returns or complaints straightforward.
Learn to build strong teams, systems & processes from India’s MSME Business Coach, Rajiv Talreja!
Even small touches like “Hi XXX, hope the red kurti you ordered last time was perfect!” build loyalty.
Don’t splurge on fancy software. If follow-ups are your weak spot, start with CRM. If you’re drowning in WhatsApp chats, get a tool that manages them all together.
Let team members swap tasks for a break. Highlight small customer service wins in meetings. Keeps spirits up.
Include repeat orders or customer feedback scores in targets, not just new sales. This way, everyone sees that happy customers drive profits too.
List common (even weird) questions with approved answers. Your team gains confidence, and customers get clarity.
A small process checklist ensures every customer gets the same great experience, no matter who handles them.
Review what’s slowing you down. Upgrade only what directly speeds up customer handling, not flashy tools you won’t use.
Whether it’s late deliveries, unclear pricing, or tough returns, fix the big complaints first. Everything else gets easier.
Let them give ₹50 off, waive a small fee, or throw in free shipping. Saves angry calls reaching you for minor issues.
If 80% of your customers DM you on Instagram, make sure that’s your primary focus, not forcing them to call.
Short replies like “I completely understand why you’re upset. Let’s fix this now,” keep conversations from spiralling.
When anyone can see the last chat or call summary, the next person can solve it without bouncing customers around.
Have greetings, delivery updates, and apologies ready in the key languages your customers use. It’s a small thing that makes them feel understood.
If you’re unsure, say, “Let me double-check and call you back by 5 PM.” Following through builds massive trust.
Think customer service is just about fixing problems? It’s way bigger than that. For MSMEs, great service is a growth engine.
Here’s why:
When people feel cared for, they trust you.
That means they’re more willing to buy again, try your other products, and even spend more each time. It’s always cheaper to keep an existing customer than to chase a new one.
Good service doesn’t stay secret. Happy customers tell their family, colleagues, and business circles.
In fact, word-of-mouth is often the best (and totally free) marketing a small business can get.
Customers who see that you actually listen and respond stick around and keep telling you what to improve. That’s like having a free business consultant on call.
Even if a competitor offers a similar product or slightly lower price, customers won’t switch easily.
Why? Because trust is hard to beat.
In short, better service doesn’t just solve problems. It multiplies loyalty, referrals, and repeat sales, which is the real secret to steady, stress-free growth for MSMEs.
Every day brings its own surprises, and not always the enjoyable kind. But here’s the bright side… “Most customer service problems aren’t impossible to fix.”
Your customers don’t expect perfection. They expect honesty, effort, and to feel valued.
When you get that right, they become your biggest fans, telling everyone why they should choose you over the rest.
So keep going, keep improving, and know that every little step you take towards better service is also a giant step toward a stronger, more successful business.
You’ve got this…
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None can destroy iron, but its own rust can! Likewise, none can destroy a person, but their own mindset can.
Former chairperson of the Tata Group
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