In today's world, every consumer expects an above-average customer experience, and outstanding customer service is the heart of a satisfied customer.
When you make your customers' needs a priority, their experience throughout the buyer's journey will continuously improve. For long term success in your industry, you must understand why customer service is so important.
Along with helping grow your business, good customer service shows your customers who you are and that you’re willing and available to help them solve their problems.
Today's consumer no longer has to stay with a company that doesn't provide good service, due to the large number of online options. Soyou first must earn your customer's loyalty by listening to their issues and helping to resolve them with efficiency and outstanding customer service.
Here are five reasons why customer service is so important for sustainability:
1. You'll Get More Referrals
If your customers are happy, they will spread the word to their family, friends, and coworkers. In fact, 77% of customers have shared their positive brand experiences with others. Think about the last time you had a positive experience with a brand: Did you tell your family or friends about it?
Sharing our own experiences is only natural, because we want the people close to us to commit to reputable brands they can trust. And this all leads to the best kind of advertising that money can't buy: word-of-mouth. It's priceless!
People are more likely to listen to the advice of a friend rather than an online review. Keep in mind, your customers have the potential to be the biggest supporters of your brand, as long as you give them a reason to be.
2. You’ll Retain More Customers
Did you know that it costs 5X as much to attract a new customer than to keep an existing one? It’s clear that customer retention is more cost efficient than customer acquisition.
In fact, if you increase your retention rates by 5%, it will increase your profits by at least 25%. This is because when you have repeat customers, they're likely to spend more with your brand.
Building those loyal relationships with your current customers or patients is crucial for the success of your business.
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3. You'll Improve Your Brand Image and Reputation
As a business owner, you naturally already have an idea of what you want your brand to represent. However, there could be a disconnect between what you want your brand to represent and how your customers view it.
Customers are judging or making assumptions about your brand based on your social media, advertisements and any other content you share.
However, your customer service team is your connection to your customers, and without them you have no form of direct communication.
Because of this, your customer service team plays an essential role in building your brand image. They're the front line of support for your customers and if the job is done well, your customers will trust you and see that you value them. And in business, trust is everything.
4. Price Will Become Less of a Factor
Based on a survey commissioned by RightNow and conducted by Harris Interactive, 86% of consumers will pay up to 25% more for a better customer service experience. This means that customer service matters so much that some customers will pay more just to interact with a business that does it well.
Customer service is becoming a priority for many companies, and any company that decides it isn't won't survive. As this report shows, a single experience can be the deciding factor for a customer and if it's a negative one you could be sending them into the arms of your competitor. Give your customers a positive experience and you could have a loyal customer for life.
5. Your Business Will Grow
Customer service represents who you are and why you do things the way you do. Only 4 out of every 100 businesses lasts through the 10-year mark -- a 96% failure rate! If you’re serious about your business, you have to focus on what matters most: your customers. Without them, you have no business at all.
It’s undeniable how crucial customer service is for the success of any business. Make sure your customers have direct communication with your business. Give your customers the service they deserve, and they will be loyal to you.
Key Points
Ready to give your customers an outstanding experience?
- Remember the top 5 reasons customer service is so important.
- Use our guide below to improve the customer service that your callers receive from customer service representatives, receptionists, or anyone that handles your business calls!
