The Untapped Value of Customer Service in Your Business
October 7, 2022
3 Minute Read
Offering excellent customer service is essential to the success of any business. It does not only create repeat customers and advocates for your brand, but it also directly impacts your bottom line. Forbes reported that 73% of companies with above-average customer experience have better financial performance than their competitors.
Unfortunately, many businesses don't know the value of customer service and don't invest enough in their teams. They see it as a cost center rather than a profit center. As a result, they don't provide the training or resources necessary for their representatives to deliver exceptional service.
Great customer service requires more than just a friendly attitude. It's about understanding your customers' needs and providing them with solutions that exceed their expectations. Read on to learn how improving the quality of your customer service creates more positive customer experiences.
The importance of customer service in business
Businesses should pay attention to the value of customer service. Here are a few key reasons:
1. Customer service builds trust and loyalty
For customers to keep coming back, they need to trust that you will take care of them. If they have a terrible experience, they need to know that you will make it right.
Good customer service instills confidence in your customers and shows that you're invested in their satisfaction. Providing friendly and helpful service can create a positive impression of your business and encourage customers to return.
2. Customer service creates repeat customers
According to a study by Signal Mind, it costs six to seven times more to acquire new customers than to retain existing ones. This stat should be enough to convince any business of the importance of customer service.
If you can provide excellent customer service, you'll have customers who are not only loyal but also willing to give your business referrals. And that, in turn, can lead to even more new customers.
3. Customer service improves financial performance
Investing in customer service can have a direct impact on your company's economic performance. A study by Bain & Company found that companies that excel at customer service have 4 to 8% higher revenue growth than their competitors.
In addition, businesses with excellent customer service often have lower costs. That is because they have fewer customer complaints and higher customer retention rates. As a result, they don't need to spend as much money on marketing and advertising to attract new customers.
4. Customer service provides valuable feedback
Customer service representatives are uniquely positioned to provide valuable feedback about your customers' needs and expectations. They are on the front line, dealing with customers' questions and concerns.
They can provide you with insights that you might not otherwise get. You can use this information to improve your products, services, and overall customer experience.
5. Customer service boosts employee morale
When you make your employees feel respected and appreciated, they are more likely to be satisfied with their jobs. They may also stay with your company long-term.
When you invest in customer service, you show your employees that you care about their well-being and are committed to giving them the resources they need to succeed. It can lead to higher employee morale and reduced turnover.
Customer service can impact everything from customer loyalty to financial performance. Investing in customer service can have a significant return on investment. If you have never paid attention to the value of customer service in your business, now is the time to start.