Why are some businesses successful while others aren’t? What is the primary difference between a failed and a successful company? It often comes down to the attention given to customer service. What, then, makes good customer service?
A business has no value until there is a demand for its manufactured goods—likewise, customers will find no value in your products if your service isn’t optimized. Customer service assesses whether or not the product/service measures up to customer expectations.
According to study.com;
“Customer service is the act of taking care of the customer’s needs by providing and delivering professional, helpful, high-quality service and assistance before, during, and after the customer’s requirements are met.”
Iconic businesses like Zappos, Amazon, Microsoft, and Apple take customer service very seriously. All of these companies take pride in offering prompt, polite, professional, and personalized customer service. It is what keeps them at the top of their game.
To improve your company’s service, you must think like a customer. Approaching your business with a buyer’s mindset will give you a better understanding of your services and what changes need to be made, and will greatly improve your approach to customer service.
You now have an idea of how to create positive customer service, but let’s take a look at why it is so important for you and your business.
Why is Customer Service So Important?
According to the American Express, one happy customer is the source of 9 referrals, but one unhappy customer can lead up to 26 angry customers. Their opinion is what matters the most.
Customers are the lifeblood of an organization. They spend thousands of dollars on your products throughout the customer lifecycle and consider both themselves and your company to be on the same page. However when a problem arises, if they’re not dealt with the same amount of consideration that they’ve been putting into buying your products, the level of dissatisfaction will rise because of the inappropriate response.
Companies with great service have a higher probability of continuous, repeated business from their customers. The results are increased profits and sales ratio. Conversely, companies that offer poor customer service are highly likely, or even certain, to suffer customer loss and less profit.
According to Marketing Metric, the likelihood of selling to a new customer ranges from 5% to 20%. On the contrary, the chances of selling to an existing customer are 60% to 70%. Research from Right Now indicates that 82% of customers leave companies because of bad customer experience.
“You’ve got to start with the customer experience and work back toward the technology—not the other way around.”
Steve Jobs (CEO, & Co-Founder of Apple Inc.)
The Perks of Serving Customers
Angry customers bring bad experiences in their daily gossip more often than happy customers do with their good experience. An average rate of happy customer’s referral is 9, but it negatively doubles for the unhappy ones. You must provide high-quality service to maintain your company’s image.
Achieving quality service may be a difficult process, but it is well worth it. Here are just a few of its perks for your business:
Better Service Raises Customer Retention
It goes without saying that the bigger the crowd, the better. This is true for happy customers who can’t help but spread the word about your products. Good customer service provides a positive experience that people want to tell others about.
“5% increase in customer retention rates escalates up to 95% growth in profits.”
Long story short, better customer service equals higher profits and happier buyers.
Better Company Persona
A business with bad public perception can’t achieve success. Customer reviews and opinions on social media and other platforms mean more than it used to back in the day.
It Enables You to Charge More
There are times when expenses and costs increase, compelling you to bump up prices. But do you know if your customers are ready for the change? The American Express denotes that 86% of happy customers will pay more for better customer service.
Research performed on customer transactions published in the Harvard Business Review found that customers who had the best experiences spend 140% more in comparison to the ones with a poor experience.
It Breathes Life into Business
Businesses exist because of their customers. If you are taking your business and profits seriously, you should first take the customer seriously.
Exceptional service reduces overall issues, strengthens your brand, lengthens customer retention, improves employee performance, and much more.
Customers may not always be right, but it’s the customer who decides whether or not you’ll keep your business. Listening to social media, putting customers first in your marketing strategy, motivating employees to work sincerely and happily, automation, self-service, and loyalty programs are a few ways to jumpstart your business.
How does your business promote good customer service? Let us know in the comments below or contact us today!