“…Values are completely irrelevant without proof that those values are backed by corporate actions” – Luigi Zingales
Chapter 7 of Company of One emphasizes something we often take for granted in business: the incredible power of customer service. Let’s start with some powerful statistics to frame this conversation:
- 9 out of 10 Americans are willing to spend more with companies that provide great customer service (Wassel, 2024).
- 73% of people have switched to a competitor because of poor service (Bishop, 2025)
- It costs 5 to 7 times more to acquire a new customer than to keep a current one (Kumar, 2022).
- 70% of purchasing decisions are based more on how customers feel they are treated than on the actual product (McKinsey, n.d.).
- 83% of new business comes from word-of-mouth referrals (Campbell, 2005).
- 60% of profitable innovations within companies have come from customers (Lilien et al., 2002).
These statistics paint a clear picture: exceptional customer service isn’t just a nice-to-have; it is a competitive advantage, particularly for small businesses.
Small companies may not be able to compete with large corporations in terms of budget, brand awareness, or market share, but they can outsupport their competition (Jarvis, p. 114). When resources are limited, it’s not about trying to scale faster; it’s about going deeper. Investing in every customer interaction as if it were the only one you will ever have is a powerful strategy. As Jarvis explains, the only thing a small company can be ‘bigger’ in is support (p. 114). That’s where loyalty and word-of-mouth referrals are born.
What makes this idea especially powerful is the personal connection a small business can have with its customers. Jarvis explains that being small allows you to treat each customer like your “one and only” (p. 107). That level of care and personalization is something larger companies often cannot replicate. And it matters. Customers remember how you made them feel: heard, respected, and valued.
With that, empathy is key (p. 111). Listening, and really listening, to customer feedback is not just about solving problems; is’s about discovering new opportunities and putting yourself in your customer’s shoes. It means taking the time to understand what your customers are truly asking for, even if they’re not articulating it clearly. When customers complain or ask questions, they are often revealing a blind spot in your system or a gap you can close. Whether it is a missing website feature, a confusing checkout process, or a demand for a new product offering, customers are giving you insight into what matters to them (p. 116). If you are paying attention, those moments can lead to real growth and innovation.
Empathy also requires humility, and part of that is owning your mistakes (p. 117). No matter how strong your systems are or how well you plan, mistakes will happen. It is not the absence of mistakes that defines a great business; it is how you respond to them. Jarvis stresses that when things go wrong, you must respond with integrity. Apologize sincerely, fix the issue quickly, and most importantly, treat the customer how you would want to be treated if the roles were reversed (p. 118). That simple act of human decency can be the difference between losing a customer and creating one for life. Mistakes, when handled with grace and transparency, often become defining moments that increase customer loyalty instead of eroding it.
When customers feel seen and understood, they are far more likely to return and refer others. When someone refers your business to a friend or colleague, it comes prepackaged with trust, and that is invaluable. But the opposite is also true: when you lose a customer, you are not just losing one transaction. You are potentially losing everyone they might have brought with them (p. 122).
In conclusion, Chapter 7 shows us how prioritizing customer service can be the secret weapon for small businesses. By focusing on relationships over rapid growth, a company of one can develop a loyal customer base that not only stays but also brings others along. In today’s crowded marketplace, treating each customer like they are your only one isn’t just good practice, it is good business.
Questions for the reader:
- Have you ever had a customer complaint turn into an opportunity for improvement or innovation?
- How do you currently gather and respond to customer feedback in your business or workplace?
- What does “treating every customer like your one and only” look like in your industry?
References
Bishop, C. (2025, Jan 15). 92 customer service statistics you need to know in 2025. Retrieved from Zendesk: https://www.zendesk.com/in/blog/customer-service-statistics/
Campbell, A. (2005, November). November 2005 Survey “Selling to Small Businesses”. Retrieved from Small Business Trends: https://smallbiztrends.com/wp-content/uploads/2008/11/sellingtosmbiznovember.pdf
Jarvis, P. (2019). Company of One: Why staying small is the next big thing for business. New York: Harper Collins Publishers.
Kumar, S. (2022, Dec 12). Customer Retention Versus Customer Acquisition. Retrieved from Forbes: https://www.forbes.com/councils/forbesbusinesscouncil/2022/12/12/customer-retention-versus-customer-acquisition/
Lilien, G. L., Morrison, P. D., Searls, K., Sonnack, M., & von Hippel, E. (2022, April 1). Performance Assessment of the Lead User Idea Generation Process for New Product Development. Retrieved from https://evhippel.files.wordpress.com/2013/08/morrison-et-al-2002.pdf
McKinsey. (n.d.). McKinsey Global Surveys. Retrieved from McKinsey & Company: https://www.mckinsey.com/featured-insights/mckinsey-global-surveys
Wassel, B. (2024, June 20). Happy customers pay more for service, survey finds. Retrieved from CXDive: https://www.customerexperiencedive.com/news/happy-customers-pay-more-customer-service/719449/
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