Understanding the Impact of Great Customer Service on Your Business
Even the best products and services often have
issues that need resolving. However, nothing frustrates customers more than
encountering an issue and contacting a company’s customer service department,
only to be put in queue for over ten minutes before a representative attends to
them. This frustration amplifies when the customer service representative
cannot adequately resolve their issues.
The days of businesses focusing on customers
only until they purchase a product or service are long gone. Today’s business
landscape requires businesses to offer excellent customer service. Otherwise,
these organizations won’t last long in this fiercely competitive landscape.
The impact of great customer service on
businesses cannot be overstated. After all, your company’s customer service
team is the bridge between customers and your organization. If your customer
service is poor, customers cannot directly communicate with your company.
Eventually, customers will lose faith and trust in your company. As a result,
their loyalty will wane, meaning they’ll buy fewer products and services and
might switch to a competitor. Your revenue and profit will decline. Moreover,
your company will acquire a negative reputation, leading to fewer referrals.
Thus, you must focus on building an excellent
customer service team combined with an AI customer service coordinator to ensure smooth
operations. If you’re still unsure about customer service’s impact on your
business, this article will make you reconsider.
How Good Customer Service Helps
Your Business
Here’s how good customer service helps your
business:
1.
Customer Retention
Every business wants to acquire more
customers. However, acquiring customers is costly. Companies try to reduce
customer acquisition costs as they scale but also want to retain their existing
customer base since they’ve spent considerable time and money acquiring them.
Good customer service may necessarily help you
acquire more customers, but it’ll help you retain your existing customer base.
Research shows getting a new customer can cost about five to seven times more
than retaining an existing one, depending on your industry.
Retaining customers is essential because
existing customers contribute a considerable percentage of sales. According to
research, approximately 20 percent of your customers will
contribute to 80 percent of your profits.
Therefore, you want to ensure your existing customers are satisfied. How can you accomplish that? By valuing their feedback and showing