Is customer service the reason your business is suffering? Customer service is one of the most critical areas of your company, and when it hurts, your entire company will fail. Think about it; customer service representatives are the direct line between your business and your customers. Do you think that your team is representing your business well? In the highly competitive small business industry, your customer service team could be the ‘make it or break it’ aspect for your company.
Customer Service Puts You Ahead
Companies with highly trained customer service staff will always come out on top, compared to other businesses that spend their time looking to other avenues such as marketing and ads. Marketing and advertising are essential aspects of the company but did you know that it’s better to focus on your existing customers? It may sound counterintuitive, but it’s true. A loyal customer is for life, and when doing business long-term, loyal customers can make a difference in your longevity.
If you are still skeptical of the benefits of customer service, then read on to learn the top reasons customer service is your company’s lifeline.
1. You Save with Customer Retention
Customer retention by 5% can increase your profits by more than 25%. If that math seems a little wonky to you, think about it. If you have one loyal customer, they are much more likely to continue to purchase from your brand. If you sell tissues, toilet paper, and paper towels, they are much more likely to buy all three products dutifully every week they come into your store. Contrast that long-term purchasing with the customer who decided to try your product one time when it was on sale. If you gain enough customer retention, your brand will sell itself, saving you money on operating costs over time. What does all of this have to do with customer service? You gain loyal customers by being loyal first. Be available 24/7, listen to their needs, solve their problems, and always let your existing customers know that you appreciate them.
2. It Gives Your Brand a Positive Image
You know your mission statement, but just because you’ve got it memorized, that doesn’t mean your customers do. Customers only know from your company what they assume about it when they view you on social media, see your ads, and interact with you on the phone. If you have a positive presence all across the board, they will see your company in a positive light. It’s as simple as that.
3. Happiness is Contagious
A big smile from a stranger can brighten anyone’s day. Imagine you were having a bad day and running late for work. Then, on your commute to work, a baby can’t stop smiling and giggling at you. It would be hard to continue focusing on your bad day when so much happiness has entered your sight-line. The same goes for customer service agents. A positive customer service agent on the other line can help set the mood for a disgruntled customer on the other end.
4. Word of Mouth
Money can’t buy you word of mouth advertising, but it is one of the most worthwhile forms of advertising. We’ve all done it when we are impressed with a brand; we can’t help but talk about it with our friends. If you have a pleasant experience with a company, it stays with you, and that’s why having a strong customer service team is so important. We revisit and reorder from the same places over and over again because something impressed us. Whether that’s a happy server at a restaurant or no-hassle, free-shipping on returns at a fashion company.
5. People Are Willing to Spend More on a Brand They Trust
This is something that is not very obvious, but very relatable. If you’re shopping online and looking for a particular product, you’re going to go with the brand that you trust over another brand with cheaper products but a bad reputation. When you’re looking for a restaurant to go to with friends, you might check out Yelp. If there are rave reviews for a more expensive spot you’re more likely to check that place out then to head to the dive bar with one star.
