A company that offers great customer service does so on the back of a team that does more than answer questions, resolve customer issues, or engage with plenty of similar things. At its core, they really care about the customer.
Providing good customer service can make you even more money as a business.
Customer acquisition costs spiral out of control for a company that doesn’t invest even a tiny percentage of its budget into customer service. Increasing investments in customer service decreases churn rates.
Plus, it’s great for sales too. A good 65% of sales come from existing customers.
1. Customers will pay more to companies with better customer service
It’s a bit difficult to price excellent customer service but more than a few customers are willing to pay a premium for the same. Customers place a high value on how customer service personnel treat them benefiting really well from positive customer service experiences.
It is no surprise that 80% of customers are willing to pay more money to get a better experience.
Companies today are learning to put the pedal on customer service considering all the different advantages it offers. A company that doesn’t take this to heed crashes and burns. One positive experience could however make them stick.
2. Customer service grows customer lifetime value
Customer lifetime value (CLV) is an important metric when running a business. CLV shows the total revenue you can expect from a single customer account. This value means your customers ship more frequently or spend more money. You can start by offering free stuff like free procreate stamps to get started with this and create a higher CLV.
Only 42% of companies can measure CLV. Investing in your customer service team is a great way to achieve higher CLV. If customers have a great experience with customer service and support they are more likely to spend money.
Customer service makes new customers trust your business more. New users will recommend your product that fit their needs. It creates a better buying experience for the customer and employees. Thus, it’s a good idea to use IVR systems and quickly connect customers with the right customer support representatives to solve their questions fast.
3. Customer service can lead to more revenue
Business leaders understand that budgeting and other business decisions affect the bottom line. But customer service can also bring in new revenue and improve the bottom line.
Anercuab companies often lose $136 billion annually owing to avoidable losses. Every positive or negative customer experience impacts company revenue or growth.
Customer service and marketing efforts
Your customer service teams are always present at the front lines, communicating with both current and potential customers. This proximity helps customer service agents provide you with significant marketing outcomes. What is more, the right customer service can boost website traffic if you use this communication channel as the primary source of customer support.
4. Customer service employees offer insights about customer experiences
It doesn’t matter how well you perceive your brand. The only insight that matters comes from the customer themselves.
If you work at a Gym, you associate the brand with health and fitness.
Customers however come to you because it makes them attractive, and is convenient to them. So your marketing should align with these values too.
Your customer service team can answer these probing questions for you. Rather than spending time and money, you can get customer service employees to ask these questions when interacting with customers.
The response lends you insights that help improve products, goals, and training.
5. Proactive customer service creates marketing opportunities
Consider proactive customer service if you want to reduce costs when investing in your business. Don’t wait for customers to report issues. For example, if you have a social media presence, you can use social media monitoring tools to collect customer insights and solve requests before they occur.
This approach helps you reach out to them before the issues start to pop up. This tells customers you are actively working to remove roadblocks and problems.
Proactive customer service isn’t just good for delighting your customers. It’s an excellent marketing tool that promotes new services. You can create features that solve a problem with your product. They can use the CRM or ticketing system to look up customers who had a problem with you in the past. And then use this data to introduce new and cool features that help customers in more ways than one.
Current data shows that proactive customer service is much more important today than before. Customers in every industry are accustomed to the pace at which digital revolution has happened. Customer service steams should be speedy at resolving issues as 90% of customers say speedy responses are the number 1 reason they would buy from a business.
6. Personalized customer service can improve your online conversion rate
Your conversion rates can improve by 8% when you add personalized consumer experiences to the mix. A higher conversion rate leads to more sales and more revenue. It keeps your flywheel pumping.
like marketing and sales.
However, a less-than-personalized service isn’t ideal and it only makes customers feel like a number in the system. 33% of consumers reported them ending a relationship with a company because they never personalized as well as they should have. Run supports that customer service is an expectation. It’s not just nice to have. It attracts new customers, prevents churn, and builds brand reputation too.
7. Customer service affects your brand image and loyalty potential
Your customer service team reflects your brand and your customer service representatives pay a key role in creating your brand image among users. Your media presence, advertisement content, and other external elements make a good impression. But your service team speaks to customers directly.
They represent your brand when interacting with new customers. After positive customer service experiences 89% of customers say that they are more likely to return and make more purchases.
So these are the tips that will help you create loyalty among customers with great customer service.