Customer service is the backbone of your sales and marketing process. Businesses big or small, while competing for customer dollars ideally prioritizes several areas based on the budgetary allocation of the marketing spend. However, building customer relationships is one of them. Spending a small percent of advertising might just be one way of marketing but not necessarily mean more sales!
Even when you spend a penny on customer service training, it might seem to be a waste of time and investment. Well, most marketers might question the investment to determine their Return on investment (ROI). But if customer service is done right, this not only delivers a great customer experience but also save big on customer acquisition cost.
The good news: Good customer service can impact your company’s bottom line.
The bad news: Not many are ready to implement an improvement plan for uplifting performance standards of customer service.
Agreed or not, customer support is the backbone of any business that can keep your business on the top. So, undoubtedly good customer experience can always bring happy consumers through your doors! The key to retain them and grow your business is by building strong customer support operations to create a happy customer.
Why Customer service is important?
Surveys drilling down on customer acquisition affirms that there’s a close relationship between customer service and business success. Employing top-notch customer support, many businesses have experienced increased revenue from satisfied customers, thereby, benefiting increased sales!
As per the recent survey, consumers are willing to spend 17% more on those businesses that deliver great customer service. Building strong customer service operations can minimize customer acquisition costs and maximize a loyal customer base. Through customer referral programs such as case studies and testimonials, customer reviews, many customers refer friends, colleagues or family members that boost customer retention rates for businesses. Happy customers are less likely to complain about the price rise in products. That sense of emotional brand loyalty can evangelize your brand, engage new customers and acquire them free of charge without even implementing new marketing strategies.
Still not convinced?
Here are 7 undeniable reasons that explain why:
1. Retaining an existing customer is much cheaper
It often involves a lot of effort and expenses to attract new customers via marketing campaigns. However, the truth is that customer retention is way too cheaper than client acquisition tactics. Merely a 5% increase in customer retention can boost up to 25% of the business profit! Thanks to repeat customers that are likely to spend at least 67% resulting in more organic reach.
The result is a long-lasting return on investment while you spend less on operating costs. Businesses that invest in improving customer support via a customer retention strategy can reduce churn rate and overall customer acquisition costs.
2. Effective customer service reflects the brand identity
You know your product, but your customer might not know about your brand. This is where Customer service serves as a unique brand building opportunity as it represents the brand, its mission & values.
By building a consistent brand presence through social media, ad campaigns, content & targeted external marketing strategies, your customer service team can maintain direct brand communication. This can significantly leverage the brand image and influence new customers thus gaining an advantage over competitors.
3. Happy customer services employees can build better customer relationships
- 87% of employees who are satisfied and happy with their jobs are willing to put in hard work for business customer success.
- 55% of unhappy employees still agree to put in hard work and dedication to customer support.
Undoubtedly, the key to company success is happy customers ready to pay for company products and services. And the key to achieving this customer happiness is to focus on a happy customer service team. It’s simple- an employee who feels undervalued and under-appreciated will leave the job immediately resulting in lost productivity.
However, for dissatisfied employees, the reasoning that works behind is the zeal to provide quality service to customers by maintaining professionalism & integrity. While the other factors that rule are customer empathy, the desire for recognition and not willing to get fired from jobs. Needless to say, a satisfied customer service employee who feels motivated at work can help catapult your business revenue in the long run!
4. Happy customers provide referrals to your business
As per the recent survey, about 77% of customers have shared positive brand experiences with others.
A satisfied customer with positive brand experience is 4X likely to refer than a dissatisfied one. By encouraging referrals through word of mouth to friends, family, and co-workers, a brand can easily get into the spotlight. Also, the brand can generate higher conversion rates that will help build brand reputation. Word-of-mouth advertising is the cheapest marketing strategy that has the potential to drive huge sales, provided your customer base is satisfied and happy.
Similarly, with a happier customer service team at the back end, you can expect them to deliver excellent customer service. Obviously, they are willing to work harder- the recipe for business success!
5. Efficient customer service triggers customer loyalty
Needless to say, positive customer experience outweighs the risks of potentially losing business by boosting customer loyalty. Maintaining a long-term customer relationship with an existing customer can maximize the Customer Lifetime Value (CLV) that business spends over the entire customer relationship life cycle. The higher the CLV, the higher the ROI that the customer generates for the brand and the higher the profit for your company.
Steller customer service experiences create memorable experiences for customers. This also helps them differentiate the brand over competitors. Real-life interactions with real-life humans of the customer service team further strengthen long-term relationships, while cultivating customer trust and brand loyalty.
6. The better the customer service, the higher the spending power of customers
- 50% of customers are more likely to purchase from a brand that gives positive customer experiences.
- 86% of customers would like to pay 25% more to receive improved customer service experience.
The stats are dire. One positive experience is enough to make or break the business. Competitors are many and customers can switch brands anytime. So, building a great customer service experience for clients matters. Customers are willing to pay even extra if they receive quality CX. This includes human interaction with a brand, which most brands in the market fall short of. Alternatively, businesses that are not prioritizing customer service will crash and burn in no time.
7. Customer service employees are the torchbearer of customer insights
Customer service employees imbibe a strategic understanding of business operations, brands, and their customers. This is because they spend a lion’s share of time interacting with them. It is important to determine the customer’s brand affinity for your products.
E.g. an athletic wear company that associates with health and wellness or fitness. Customers might comprehend as a brand associated with leisure, comfort or style by customers. Aligning to such customer insights is crucial for a brand to deliver insights and getting employees on the bandwagon. Customer service employees furnished with such probing questions can deliver such insights about product improvement, marketing goals, and employee training.
A well-trained customer service team can boost operations by connecting customers quickly and solving queries. This can take your brand to the next level. Customer communication & support skills if leveraged properly can expand customer base & meet business goals.
Want to know more about positive customer experience for sales and services? Let us guide you to digitize your brand with adequate media avenues suitable for your business. Contact us today and learn how we can help you.