Even though customer acquisition is important to the growth of a business, it’s retention that drives revenue. Plus, it costs far too less to keep a customer than to acquire a new one. One of the key factors affecting customer retention is the service your business offers. A single interaction can leave a lasting impression on how a customer perceives your business. And, with technological advancements and a wide variety of choices in the marketplace, selecting or dismissing brands has become quite effortless. Customer service is vital to retention in today’s competitive business environment, here’s why:
Customer Service Represents Your Brand
Your customer service team is your company’s connection with your customers. The team has a responsibility of representing your brand to customers by relaying to them what you want your brand image to be. They can convince customers of your strengths over competitors. Customer service affects a company’s reputation more than the actual products/services. In fact, 60% of customers prefer great customer service over a cheap deal and a good number will leave a brand because they don’t like the treatment they received.
It Ensures Customer Satisfaction
The service you provide to customers before, during, and after a purchase, all go into determining their level of satisfaction. Good service includes things like treating customers with respect, resolving issues fast, following up on feedback, understanding a customer’s needs and wants, knowing your products inside out, not to mention offering different delivery options and speed to fit customers’ lifestyles and needs. Good service will leave your customers feeling well taken care of.
It Encourages Loyalty
People are more likely to repeat pleasant experiences. If a customer experiences great customer service, there’s no reason for them to look somewhere else the next time they need to make a similar purchase. Since loyalty is rooted in trust, consumers trust real-life humans more than they do the ideas and values of a company. Therefore, your customer service team needs to interact well with customers to help build life-long relationships. A loyal customer is worth up to 10 times the value of their first purchase.
Offers Important Insights about Customer Experiences
Regardless of how good you think your brand is, what matters most is how customers perceive it. Your customer service team can ask questions while interacting with customers. You can also ask for feedback and reviews after delivering goods/services. Your customers’ responses will give you a lot of insights into current consumer trends to help you improve your products, marketing strategies, and even how to serve them better.
Satisfied Customers Generate Positive Word-of-mouth For Your Business
Your customers can offer the best and cheapest form of advertising if you give them a reason to. Good service makes customers happier and more likely to spread the goodness to others. A lot of people make buying decisions based on other people’s experiences with that particular brand. Today, customer service experiences are easily circulated on social media platforms and reflected on online reviews. Given that it takes about 12 positive experiences to make up for one unresolved negative experience, businesses should strive towards offering good service.
Studies have shown that a huge number of unhappy customers don’t complain. And if they keep receiving less than satisfactory service, they’ll leave. You should, therefore, put as many resources as possible into making a strong and helpful customer service team to avoid losing a good portion of your customers to competitors.