Why Customer Service Is Important To Growing Businesses
“It takes 20 years to develop a reputation and just five minutes to destroy it. If you ponder upon it, you’ll do things differently,” Warren Buffet once said. Did you know that 85% of customers would rather choose to spend their money on a company that regularly provides them with exceptional customer service? This is why customer service is important.
Most businesses that consistently treat their customers badly often face an uphill battle in expanding their reach. Only when a customer is happy with the quality of service they receive and they have willingly purchased again from you will you achieve customer retention. The reason why customer service is important is that it is a critical factor to gaining success in a business. Thus, it should never be overlooked. The goal should always be to make the customers feel appreciated and satisfied as it might be the turning point for a business to make it to the long haul. For most businesses, attracting new customers on a regular basis might be quite hefty, especially if you are just a booming business, to begin with.
Ultimately, excellent customer service contributes to a fantastic client experience, especially when your employees go above and beyond the call of duty. If your main purpose is to provide actual value to your clients, then your prospects of creating a more lucrative company increase dramatically. On the other hand, if you start a business just for the sole resolve of gaining profit, without taking into account why customer service is important, then you can highly expect a budding business disaster.
What is Customer Service?
Customer service refers to the aid and advice that a company provides its customers before, during, and after they enjoy a service and/or purchase a product. Customer satisfaction has always been vital in business, but it holds more relevance now more than ever. As there are several brand options, consumers have created high expectations for the products and services these brands offer. This is why from the very beginning, just when a product is introduced to the market to post-purchase and beyond, there has to be impeccable customer service. It is believed that there’s a direct link between satisfied and happy consumers, brand loyalty, and an increase in revenue.
To put it simply, brands must be consistent in how they serve their customers because if not, the risk would be losing out on the competition. Customer service is a critical component when delivering today’s services, products, and businesses, and it should be imprinted into all of your brand’s platforms and channels. Customer loyalty usually is driven by service more than by price or even by the product itself.
Customer loyalty and business success are both dependent on high-quality service, according to several studies. Customer service, on the other hand, has evolved considerably over the years and now encompasses much more than phone calls and emails. Today, in this fast-paced digital world and economy, sales must go hand-in-hand and collaborate in real-time with service to be able to communicate information quickly and obtain insights on what the customers anticipate.
Improving Customer Satisfaction
If improving customer satisfaction is your main focus at your company, it is vital that you go above and beyond to make sure that happens. Every time you interact with a consumer, make sure that you see it as an opportunity to make it memorable and rewarding. Having a devoted staff of customer service representatives that has received training on how to actively listen to customers, understand their problems, and offer quick and efficient answers is a huge green flag.
Make sure to value simple, clear communication and constantly strive to go above and above for your clients. Strive to develop enduring connections with your esteemed clients by keeping lines of communication open, responding to issues quickly, and going above and beyond to personalize each engagement. If you are dedicated to always enhancing your customer service to meet and exceed your expectations because client satisfaction should be the ultimate goal.
Tips for Providing Good Customer Service
Improving customer service is crucial for the success of our business. It directly impacts our reputation, customer satisfaction, and ultimately, our bottom line. By enhancing our customer service efforts, we demonstrate our commitment to delivering exceptional experiences and building strong relationships with our customers. Satisfied customers are more likely to become loyal advocates who not only continue to support our business but also refer others to us.
Improved customer service helps us differentiate ourselves in a competitive market, creating a positive brand image that attracts new customers and sets us apart from competitors. Moreover, by actively listening to customer feedback and addressing their needs promptly, we gain valuable insights that can drive continuous improvement in our products, services, and overall customer experience. By prioritizing and investing in the improvement of customer service, we ensure long-term growth, customer loyalty, and sustained success for our business Here are some tips for providing excellent customer service:
Active Listening: Take the time to actively listen to your customers, allowing them to express their concerns fully. Show genuine interest and empathy towards their needs.
Prompt Response: Respond to customer inquiries, concerns, and complaints promptly. Acknowledge their messages and provide timely updates to keep them informed.
Knowledge and Expertise: Develop a deep understanding of your products, services, and company policies. Be well-informed and equipped to answer customer questions accurately and confidently.
Positive Attitude: Maintain a positive and friendly attitude throughout the customer interaction, even if faced with difficult situations. Be patient, respectful, and courteous, demonstrating your commitment to their satisfaction.
Personalization: Treat each customer as an individual and tailor your approach accordingly. Use their names, acknowledge their previous interactions, and offer personalized recommendations or solutions whenever possible.
Problem Solving: Take a proactive approach to solving customer problems. Collaborate with them to find appropriate solutions and follow up to ensure their issue is fully resolved.
Clear Communication: Use clear and concise language to explain processes, policies, and solutions. Avoid jargon and technical terms that might confuse customers. Confirm their understanding before proceeding.
Empowerment: Empower your frontline employees to make decisions and resolve customer issues without unnecessary escalation. Trust your team to handle customer concerns effectively
Continuous Improvement: Regularly evaluate your customer service processes and seek feedback from customers. Actively work on improving your service based on their suggestions and evolving needs.
10. Appreciation: Show genuine appreciation for your customers' business and loyalty. Thank them for choosing your company and consider implementing a customer loyalty program or providing occasional surprises or rewards.
By following these tips, you can create a customer service experience that exceeds expectations, builds trust, and fosters long-term customer satisfaction.
Customer Service VS. Customer Support VS. Customer aftercare
Customer support, customer aftercare, and customer service are all phrases that are oftentimes used interchangeably and are confused with the other. Although there is a very small gap in the descriptions of each term, it is necessary to understand their differences to maximize potential benefits.
Why is customer support important? Unlike customer service, customer support refers to presenting technical assistance to customers after they purchase a product from you - such as installation of devices or troubleshooting. Meanwhile, customer aftercare occurs after a transaction but encompasses a larger range of services. As the name suggests, it basically entails taking care of the customers until fully knowing that they have enjoyed your product or service.
Why is Good Customer Service important?
Why is customer service so important? It is because it holds a critical position in maintaining your market status effectively. Unlike the olden days of marketing, where people gravitate primarily towards lowered prices or the kind of services offered, today, the total experience of a client is now the deciding factor.
No one can deny that great customer service translates to a satisfying and wonderful client experience, especially when the customer support team goes more than just addressing issues and recording customer feedback. When your customer service representatives are empowered enough to go the extra mile for clients, they may develop unforgettable experiences that will positively separate you from your competitors.
Below is a list of why customer service is important to a business:
Customer service can greatly impact your company’s net income.
It is commonly argued that keeping existing consumers is less costly than finding new ones. But did you know that inviting new customers can cost you six or seven times more? Yes! And the main attributing factor to the major customer turnover is poor customer service. So make sure that doesn’t happen to you. Hence, prioritize customer service as it will help you keep loyal customers while magnetizing new ones. In effect, it is improving your company’s bottom line along the way.
Customer service can significantly shape your brand image.
Due to the dominant usage of social media nowadays, consumers have made it a platform to voice out their expectations and feedbacks on certain products or services that they enjoyed or not. The single act of expressing their discontent on a product can already reach an enormous number of audiences in an instant. Thus, it would really help to be careful and mindful of how you handle your customers because unfavorable posts from them can create negative effects on your product and company.
Reasons Why Customer Service is Important as part of your Growing Business
Keeps your customers and makes them loyal
One of the most compelling reasons why customer service is important is its contribution to lessening your total cost. It is more practical to keep existing consumers than to acquire new ones. According to studies, attracting new clients cost nearly five times more than just keeping existing customers. When a company is trustworthy and delivers excellent customer service, satisfied consumers become loyal purchasers.
Avoids bankruptcy
Approximately 96 percent of American enterprises fail after ten years. Poor customer service is one of the major factors. Buyers feel irritated when minor issues are not addressed promptly and properly. It occurs when a company lacks the understanding of why customer service is important. If so, they would be able to delegate competent customer service representatives who follow up on issues and fulfill requests quickly.
Creates positive reviews and endorsements
Positive reviews and endorsements from customers are why customer service is essential to a business. Customers that are loyal give favorable feedback and positive internet reviews, which may help your company develop your brand. A loyal consumer is worth ten times what they paid for in their initial transaction. People generally make purchase decisions based on recommendations from family and friends rather than advertising messages, according to research.
Through the power of excellent customer service, you will be able to retain your loyal customers and be a step closer to your business goals. In fact, if you realize why customer service is important even in the initial stages of your business and have already started working on it, then you will be saved from a lot of hassle from trying to fix a bad brand image caused by poor customer service. By considering having superb customer support from the very beginning, you will be able to attract new clients, avoid customer churn, and build a positive reputation and brand image. It is futile to deny that great customer service is already an expectation amongst customers and not a takeaway.
Frequently Asked Questions
What is the most important for customer service?
The most important aspects of customer service revolve around creating exceptional experiences that prioritize customer satisfaction and build lasting relationships. Active listening and effective communication play a vital role in understanding customers' needs, concerns, and preferences. Providing prompt and reliable solutions to their problems showcases our commitment to their well-being. Personalization and attentiveness demonstrate that we value each customer as an individual and strive to meet their unique requirements. Going above and beyond to exceed expectations generates a sense of delight and fosters customer loyalty. Consistency in delivering high-quality service reinforces our brand's reputation and builds trust. Continuous improvement based on customer feedback enables us to adapt and meet evolving expectations. Ultimately, customer service is a reflection of our dedication to creating positive interactions, fostering customer loyalty, and achieving long-term business success.
Does customer service really matter?
Customer service is of utmost importance for small businesses. As they strive to establish their presence and build a loyal customer base, providing exceptional service becomes a critical differentiator. Small businesses often have the advantage of offering a more personalized and intimate experience, and delivering outstanding customer service amplifies this advantage. By ensuring customer satisfaction, addressing individual needs, and going the extra mile to create positive interactions, small businesses can earn the trust and loyalty of their customers. Positive word-of-mouth recommendations are incredibly valuable for small businesses, and excellent customer service cultivates this organic promotion. Moreover, satisfied customers are more likely to become repeat customers, driving revenue growth and contributing to the long-term success of the business. In the competitive landscape of small businesses, exceptional customer service can be a powerful catalyst for growth, differentiation, and building a strong brand reputation.
What is customer service's main priority?
The main priority of customer service in a small business is to ensure customer satisfaction and create memorable experiences. With limited resources and competition from larger enterprises, small businesses rely on exceptional customer service to differentiate themselves and build a loyal customer base. By prioritizing customer needs and going above and beyond to meet their expectations, small businesses can foster strong relationships that lead to repeat business and positive word-of-mouth referrals. Providing personalized attention, addressing concerns promptly, and delivering consistent quality are key aspects of small business customer service. Small businesses understand the value of each customer and strive to create a welcoming and attentive environment where customers feel valued and appreciated. Ultimately, the main priority of customer service in a small business is to build trust, loyalty, and a positive reputation, ensuring sustainable growth and success.
Thanks for reading!
Kristy Yoder here, the founder and CEO of Smart VAs, a Filipino based in the United States. Visit us on Facebook or hang out with us on Instagram to stay up-to-date on what’s in store for you! And don’t forget to Download our FREE E-book on Delegation.