The Role of Customer Service in Reaching Your Business Goals: Part 1
Published: January 15, 2021
Time and again we always hear the phrase ‘customer is king’ and it should come as no surprise that plenty of successful businesses have followed this rule. Traditionally, this phrase entails a company’s promise to provide excellent service to their customers. And in this digital age, it should be practiced diligently as customers now are more aware of their needs.
Customer service is one of the most crucial factors when it comes to the reputation of your business. Studies show that around 90% of customers that are highly-engaged buy more frequently and spend 60% more per transaction. The performance of your customer service has a lot to do with this. That’s why you should consider customer service as important as every other aspect of your business.
Aside from the reputation of your business, excellent customer service can significantly contribute to other factors that can be beneficial to your goals.
10 Reasons Why Customer Service Can Help You Reach Your Goals
1. Increases Revenue
The primary indicator of the success of a company is its revenue. Profitability dictates business decisions and good customer service has a hand in increasing this. In fact, 84% of companies that are continuously working to improve their customer service has seen significant revenue growth.
2. Increases Customer Loyalty
Your customer service team builds trust which inspires your customers to be loyal. In fact, loyal customers are cheaper to retain than acquiring new customers all over again. According to some studies, you have a 60-70% probability of selling to existing customers while selling to new customers only gives you a chance of 5-20%. But more than that, happy and satisfied customers can give referrals to your company. Through this, you’ll have more chances of creating loyal customers in the long run.
3. Increases Customer Retention
Mastering customer retention builds a solid foundation for your business. Satisfied customers equate to consistent profit and precise predictions. Your customer service team can also frequently give insights into the customer’s overall experience. Most customers even mention good customer service as their reason for sticking with the company. In fact, 75% of customers said that they would return to a company with excellent service.
4. Increases Customer Lifetime Value
Customer Lifetime Value (CLV) is one of the most important metrics to monitor when running a business. It represents the total profit you can get from a single customer over time. If your CLV is growing, then that means that your customers are buying more frequently at your business. Your customers can become lifetime brand advocates by maintaining this value. Investing in customer service efforts is the best way to improve your CLV.
5. Increases Customer Purchase Basket
Customer service significantly matters to customers as 67% of them are willing to spend more for good customer service. On the other hand, 50% of customers are willing to increase their purchase basket after a positive experience with a business. These two figures clearly show that companies should prioritize customer service if they don’t want to crash and burn.
6. Increases Competitive Advantage
Excellent customer service can be the competitive differentiator for your company and the key to keeping customers loyal. If your company has great customer service and if your competitors don’t, you’ll be sure to capture their customers as well.
7. Increases Business Longevity
For most startup owners, the challenge is to maintain business longevity. In fact, 20% of startups fail in their first year. Offering great customer care is the solution to this challenge. Investing in a customer service team to provide a great experience to customers is the first step to increase profits and place your brand on the market.
8. Decreases Customer Churn
Customer churn is a good indicator of whether or not your customers are happy with your brand. And getting an excellent customer service team can help lower the churn rate. Why is it important to have a seamless customer experience? Because 89% of customers end up shifting to a competitor after a poor experience.
9. Decreases Marketing Spend
By providing outstanding customer service, your customers will become your brand advocates. They will personally advertise your products or services without monetary equivalent. All it takes is just pure brand satisfaction. In fact, 56% of customers will likely recommend a brand with excellent service to family and friends.
10. Represents the Company’s Values
Your customer service team should be the external representation of your company’s image, vision, mission, and values. They’re the front-liners and they speak directly to your customers. That’s why every message they relay and how they speak with the customers must be aligned with the company’s brand image. Besides, your customers will appreciate your brand more by having a cohesive message throughout their buying journey.
These are just a few reasons why great customer service can help you reach your bottom-line goals. Likewise, your customer service team should also have applicable skills in order for your company to reap the benefits mentioned above.
Check out the part 2 post for the continuation of this article.
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