Written by: Haylee Knoppe
From a mom-and-pop restaurant, to a farmers market vendor, to a local coffee shop, small businesses represent the vertebrae of the American economy’s backbone. Small businesses make up 99.9% US businesses and employ 61.6 million Americans, serving as an economic engine of what is the powerhouse of the US economy (Lucy & Ferguson, 2023). In short, small businesses are undeniably valuable, contributing to labor markets, combatting the presence of monopolies, supplying GDP, and, according to the National Business Association, “embody[ing] the entrepreneurial spirit that is at the heart of the American dream” (The Impact of Small Businesses in the United States – National Business Association, 2024). Unfortunately, despite their extreme benefits to economic diversity and growth, small businesses face many challenges when large corporations “seem to have every competitive advantage,” from marketing budgets, to inventory, to aggressive promotions (Brown, 2025). This begs the question: with limited marketing budget, higher costs, and a lack of pricing flexibility, how are upwards of 33 million small businesses able to stay afloat when in direct competition with multi-billion-dollar brands (Lucy & Ferguson, 2023)?
From better product quality, to specialized production strategy, small businesses bring a plethora of unique comparative advantages to the table. Of this multitude, one of the most influential is the ability of small businesses to prioritize customer service. Many savvy small business owners recognize that they can compensate for their inevitable, situational challenges by providing a customer experience that surpasses all competition – including the cash-strapped big brands. One local exemplar of a small business employing this strategy is The Cabinet Finishers (TCF)—a highly regarded, family-owned and operated cabinet refinishing business based in southeast Michigan. TCF has made a notable decision to devote themselves to
“unrivaled professionalism” in all customer interactions, from an attentive, thoughtful phone receptionist, to meticulous record-keeping of customer requests, to free in-person consultations with the CEO (The Cabinet Finishers, 2019). Although product quality and 43 years of expertise undoubtedly contribute to TCF’s success, it is clear that their dedication to exceptional customer service provided them with a significant competitive advantage. From the “About Us” section of their website, to raving customer reviews and testimonials, to receiving the “Best in Service Award” from Houzz Inc. 11 times and counting, The Cabinet Finishers are known synonymously with phenomenal customer service, growing into a dominant and recognized leader in the cabinet refinishing industry (The Cabinet Finishers, 2026). This connection transcends industry confines, as prioritizing excellent customer service has countless benefits, including personalized information collection that leads to revenue-boosting practices like price discrimination, product specialization, and natural community engagement.
One of the most influential consequences of excellent customer service is the establishment and growth of a personal connection with individual customers. Growing personal relationships with customers entails longer, more frequent, and more individualized interactions with each customer. In order to organize these interactions to improve customer experience and efficiently collect relevant information, Customer Relationship Management (CRM) software systems are used to manage interactions with current and potential customers in order to improve relationships and business growth (Salesforce, 2024). The use of a CRM system allows a business to use real, relevant data about their consumer base to enhance and personalize interactions with current, past, and prospective customers. Big brands often employ CRM software to organize large quantities of information at-scale, whereas small businesses can utilize “personal relationships [to] compensate for less sophisticated systems” (Daan, 2025). Tailoring
the use and upkeep of a small business’s CRM system to reflect personalized devotion to each customer’s experience not only improves customer satisfaction and loyalty, but also expands the business’s knowledge about their consumer base. This influx of information improves the efficiency of several methods of growth in revenue and brand-awareness, including price discrimination and specialization.
Price discrimination can be practically utilized in a multitude of ways, bulk discounts, rewards cards, and child/senior discounts (CFI Team, 2022). These practices can help capture a new demographic of customers, while also lowering prices for consumers. This practice is exponentially more effective at improving revenue and consumer experience if it is supported by real, up-to-date information about the status of a market. Although there are countless other factors surrounding a business’s decision to offer any degree of price discrimination, with more information gathered from more frequent customer interactions, businesses are able to make more efficient and informed decisions around pricing. Thus, investing in excellent customer service can directly influence pricing decisions and therefore revenue outcomes for a business.
Further, awareness of customer desires can improve a business’s success through product specialization. Through active attention to “customer needs and challenges, businesses can identify areas for product improvement, prioritize feature development, and enhance overall product value…. creat[ing] products that truly meet the needs of their target audience” (The Role of Customer Success in Product Management, 2024). Attentive customer service becomes a method of communication between customers and product developers, fortifying a continuous cycle of informed product development and specialization to improve customer satisfaction. Businesses can accurately identify their comparative advantage and maximize efficiency by tailoring their product to maximize both revenue and consumer satisfaction. For example, after
attentive analysis of market demands, The Cabinet Finishers expanded their service offerings to include commercial millwork. This is a practical example of how attentive customer service grants small businesses the information and business acumen to improve and expand their product offerings to efficiently provide for market demand.
A small business’s prioritization of customer service to enhance individualized pricing and product specialization fosters trust and reputability among individual customers and lays the foundation for a brand-centric community. This “turn[s]… customers into… advocates… building a community around [a] brand or product” (Gandhi, 2024). More than 90 percent of customers trust peer-to-peer (P2P) reviews more than company advertisements (Drake, 2020). In a modern age that incentivizes trends, fads, and social media virality, community-building initiates a natural bandwagon effect, as popularity contributes to purchases from trend-seeking individuals. On a larger scale, a community built from fantastic customer service is a cost-effective method of improving the brand-recognition and success of a small business.
Prioritizing customer service is a phenomenal pursuit for small businesses waging war against large, name brands with wider resources and deeper pockets. Devotion to excellent customer service has several economic advantages, from informing pricing decisions, to improving product development and specialization, to building a loyal community around a brand. In a modern landscape of rapidly modernizing marketing strategies and methods of customer acquisition, it is important to hold true to the foundation of good business: care and dedication to your customers. As the Chief Operating Officer of The Cabinet Finishers eloquently stated, “People may forget what you sold them. But they’ll never forget how you treated them” (Personal communication, March 13, 2026).
References
Brown, J. (2025, August 14). How can small businesses compete with larger brands? Uptick Marketing. https://uptickmarketing.com/blog/strategies-to-compete-with-big-brands/
CFI Team. (2022, November 28). Price discrimination. Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/management/price-discrimination/
Daan. (2025, September 26). How does CRM differ for small vs large businesses? The Smiling Salesman. https://thesmilingsalesman.com/blog/how-does-crm-differ-for-small-vs-large-businesses/
Drake, A. (2020, January 14). 3 steps to building an engaged brand community. Gainsight. https://www.gainsight.com/blog/3-steps-to-building-an-engaged-brand-community/
Gandhi, A. (2024, August 12). Council post: Driving brand loyalty: How customer service plays a role in long-term brand building. Forbes. https://www.forbes.com/councils/forbesbusinesscouncil/2024/03/26/driving-brand-loyalty-how-customer-service-plays-a-role-in-long-term-brand-building/
Lucy, I., & Ferguson, S. (2023, May 25). Small business data center. U.S. Chamber of Commerce. https://www.uschamber.com/small-business/small-business-data-center
Salesforce. (2024). What is CRM? https://www.salesforce.com/crm/what-is-crm/
The Cabinet Finishers. (2019). The Cabinet Finishers. https://thecabinetfinishers.com/
The Cabinet Finishers. (2026). The Cabinet Finishers. Houzz. https://www.houzz.com/professionals/cabinets-and-cabinetry/the-cabinet-finishers-pfvwus-pf~1704009521
The impact of small businesses in the United States. (2024, October 23). National Business Association. https://nationalbusiness.org/the-impact-of-small-businesses-on-communities-across-the-united-states/
The role of customer success in product management. (2024). LaunchNotes. https://www.launchnotes.com/blog/the-role-of-customer-success-in-product-management