Have you ever wondered why providing excellent customer service is so important? Is it truly that significant? Is perfection required? Is adequate, but not great?
When you reflect on your individual experiences with businesses, you’ll see that there have been very few instances where the customer service was so exceptional that it truly made you feel like a valued client rather than just another unanswered ticket.
Both new and established businesses frequently make the error of undervaluing or ignoring the significance of providing excellent customer service; maybe they haven’t fully realized that this can make or break their business.
How? Below, we’ll discuss why customer service is important and why great service must run through all parts of your company.
Boosts Customer Allegiance
Superior products are insufficient to guarantee the loyalty of customers. Customers actually prefer to do business with companies whose products are inferior to yours if they receive superior service, according to research!
However, don’t assume that your offering is excellent! Providing your customers with what we call Customer Satisfaction is the best way to find out if they will make another purchase from you in the future.
This allows your clients to leave ratings for your good or service! If you receive an average score of seven or higher, you can be confident that you did a good job and that they will likely return. Those that give you a perfect score of ten or even nine can even be considered brand ambassadors for your business.
You might lose that client if your score is 6 or lower. Putting this group of clients on a watch list and having them followed up on is the best course of action. Determine what went wrong and how you can improve, then put that improvement into practice.
Gets You Noticed
Customer happiness is one highly important distinction in a fiercely competitive market where businesses must fight for customers. In today’s market, the few organizations who manage to make customer assistance a fundamental component of their business strategy are likely to survive and even prosper.
Given two companies offering comparable items, how would you select one? Will you have a different opinion if someone suggests one to you? How did they come up with the suggested course of action? Excellent customer service is crucial!
Companies with an effective customer service culture create an avenue where customers are heard and made to feel special. When customers are made to feel special – they don’t forget. They always have you in mind and recommend your service or product whenever possible.
Reduces Customer Churn
Accenture’s 2009 global customer satisfaction report showed that the major reason behind customer churn was not price but customer service. It established what we’ve always known which is that meeting and exceeding customer expectation when it comes to service makes them your customers for life – or as long as possible.
The importance of Customer Lifetime Value (CLV) is something that must be understood by businesses as ROI increases in a directly proportional ratio to the CLV.
A recent survey revealed that completely satisfied customers account for about 2.6 times the revenue gotten from less satisfied customers. This just means that if clients don’t like the way you serve them, they’ll avoid purchasing from you whenever they can.
Decreases Negative Word Of Mouth Publicity
Studies have shown that an unhappy customer is likely to tell about 10-15 other people about their bad experience (we don’t need research to tell us this). That’s too much bad publicity and it will eventually affect your bottom line.
There is a direct relationship between customer satisfaction, repeat orders, and increased revenue. Unfortunately, many firms do not actively work towards knowing when they’ve performed badly or how poor customer satisfaction affects their business.
You might not mind losing one client because he/she wasn’t satisfied with your service. However, it becomes a serious problem when you have to lose another 30 customers because of the word of mouth spread by that one unsatisfied customer.
You have to keep measuring customer satisfaction levels to ensure you keep the negative word of mouth publicity at bay.
Acquiring Customers Can Be Expensive – It Is Much Cheaper To Retain Old Ones
This is one customer service statistic that I think everyone knows. It cost about 7 – 8 times more to land a new customer than to retain an old one! If this doesn’t help you understand the importance of retaining your clients through great service, nothing else will. Getting new clients can be an expensive task; you have to spend a lot to first get their attention, and then put in a lot of effort to convince them to try out your product/service.
On the other hand, little or no money is needed to retain an old client, why? You don’t have to get their attention – you already have it! And you don’t have to convince them to try because they already have. Moving forward, any interaction they have with your company will be based on the quality of service they received when they took a leap of faith and tried you out – isn’t it easier to just offer great service so they always think of you positively?
If customer service is so important, how then do you measure and improve it? Try any of the following strategies
- Record customer demands by conducting surveys
- Send special promotions and offers via email
- Educate your customers via blog posts or articles
- Find out how happy your customers are by measuring their satisfaction.
- Personalize their buying experiences
Outsourced IT service desk companies play a crucial role in your business as they contribute significantly to customer service. Customer service acts as a primary indicator of loyalty, making it imperative to identify and minimize the number of dissatisfied clients, thereby positively impacting your bottom line.
Moreover, customer service serves as a vital means of attracting new customers. In today’s market, customers value the additional benefits and supplementary aspects they receive alongside a product, placing great importance on customer satisfaction through exceptional customer service. As an outsource IT service desk company, we understand the significance of delivering top-notch customer service to foster customer loyalty and satisfaction.