9 Tips On Why Providing Great Customer Service Is Essential To Any Business
PeerDive
Developing a great product or service is only half the battle for any business to succeed. It takes more than a great idea to create a thriving business. Creating and providing great customer service to address your client's needs to be part of your business strategy from day one. In addition, providing great customer service can create a positive image for the company and help you attract and retain the right customers.
Don't know where to start? Not to worry. Our experts here at PeerDive have put together this helpful guide on everything you need to know about why providing great customer service is important to any business.
What is Customer Service?
Customer service is how your company interacts with its customers. This includes employees, systems, processes, policies, etc. Customer service is further defined as how your company handles daily transactions and problems solves solutions when issues arise.
Providing great customer service directly impacts your company's overall profitability. Your customer service team serves as the front line when dealing with your customers. These can be both positive and negative situations. It is critical for your team to be able to handle different situations and to be able to turn a negative situation into a positive one.
What Is Good Customer Service?
Over 75% of all consumers would be happy to buy from a company with excellent service. Good customer service empowers your customers through the purchasing process. From their pre-purchase through their post-purchase experience, you want your customers to have a positive experience throughout the entire process.
When defining if your customer service is good, there are some questions you should be asking yourself:
- How can I better assist my clients in making a purchase?
- How quickly can you answer your client's questions or concerns?
- Are there any barriers to entry when making a purchase?
- How can I make the ordering process easier?
- Is my staff adequately trained on my products/services?
- Am I able to quickly address any issues my clients have?
- Am I educating my clients on how they can get the most out of my products/services?
- How can I reward my clients for their repeat business?
All these questions should help you map out if your company can improve your customer service.
Why Is Having Good Customer Service So Important?
#1) Revenue Increase With Good Customer Service
Over 84% of organizations report that great customer service directly correlates to increased revenues. Whether we like it or not, revenues are the backbone of every business. They dictate every decision we make. Providing great customer service (both online and in-person) is an easy way to boost overall client happiness and return sales.
#2) Sets You Apart From Your Competitors
Providing good customer service is key to keeping customers loyal to your brand. If they feel valued by you, they are less likely to switch over to your competitors. A recent study found that over 70% of all consumers said they would be willing to spend an average of 13% more with companies they believe provide excellent service. That could be huge for your bottom line.
If you are able to provide great customer service while your competitors are not, that can significantly set you apart in the marketplace. You want to work towards creating a positive experience every time your client purchases for you.
#3) Increases Customer Lifetime Value
Customer lifetime value, or CLV, is an important metric for any business. CLV represents the total amount a single customer will spend over the lifetime of their account. Growing your CLV by creating positive interactions with your clients means that there is a higher chance your clients will spend more with you than with your competition.
Clients with a higher CLV with you are more likely to recommend your products and services to their friends and family. In addition, new prospective clients will be more likely to trust your brand since an existing client personally recommends them.
#4) Proactively Addresses Customer Issues
A proactive customer service team allows your business to address client concerns before they become a larger issue. In addition, being proactive with your customer service can let your customers know you are actively working to improve their user experience.
#5) Clients Expect Businesses To Have Quality Service
As contradictory as it sounds, almost all consumers expect any credible business to have a good customer service team. They want to know that if an issue arises that it will be handled quickly and proactively by your team.
Customers don't just want high-quality services. They are demanding it. Over 66% of customers said they would switch brands if they felt they were not being treated as individuals. In addition, customers are not afraid to take their business directly to your competitors if they are unsatisfied with their experience.
#6) Retain Existing Customers
Acquiring new customers can cost anywhere from 6-7x more than retaining existing ones. For any small business, overall customer satisfaction is even more important. The U.S Small Business Administration reports that over 68% of all customers leave a brand because they are upset by the treatment they received.
Offering fast and helpful customer service is now more than ever crucial to remaining relevant to your customers.
#7) Encourages Word-of-mouth Marketing
When customers are happy with your business, they are more likely to tell their friends and family about it. Positive word of mouth from a loyal client is one of the best forms of advertising a business can have. In addition, word-of-mouth marketing can help improve overall sales and increase performance. It is a win-win for both parties!
#8) Customers Will Pay More For Good Customer Service
Over 67% of customers would pay more to get better customer service. These are statistics that can not be easily ignored. Customers are influenced even by a single experience from a brand, both positive and negative. Creating one positive customer experience over a negative one could be the deciding factor for one of your larger clients to run over to your competitors.
#9) Strengthens Company Culture
When everyone at your company shares the same goals as your customer service team, it creates a streamlined workflow. Your backend engineering team might be more willing to listen to your sales team if they share the same end goals. By creating a positive culture where good service is at the forefront, you can create an organization of helpfulness.
About PeerDive:
Peer Dive is a popular online directory created exclusively for businesses to leave and view reviews on individuals before offering their products and or services. Peer Dive was created to help local businesses and their communities make the most informed decision on who they want to do business with.