Importance of Customer Service for any Business

Importance of Customer Service for any Business

In the ongoing, exceptionally serious business climate, there is a consistent and ceaseless battle that each business visionary should confront. The individuals who can adjust will endure and flourish, enjoying unlimited monetary success and market immersion. 

Obviously, for any individual who is adamant about being successful, it is basic to understand the absolute significance of unshakable customer service. It is not just about the customer continually being correct. It is tied in with dealing with your customers as if you would treat your family. This does not occur by speaking condescendingly to them or searching for any conceivable method to extricate more cash from them. It occurs by genuinely making a special effort for them and enhancing the business-customer relationship. 

Customer service offers outstanding support to businesses that leaves the customer feeling esteemed and regarded. It is common knowledge that offering great customer service means additional assets, time, and resources, however, when you get the hang of it, it will empower you to stand apart from your opposition, keep a positive standing among future customers and urge existing customers to buy from your business even more. Keep in mind: it is multiple times pricier to acquire new customers than it is to hold the current ones! 

In order to explain it in a better way, let’s take an example. Last year, I shifted to New York City and got Spectrum’s internet service on a friend’s recommendation. The prices were affordable and I was provided with plenty of amazing benefits including a complimentary security suite, and a seamless connection, through and through. However, the thing that struck them apart was their effective 365/24/7 customer service and so I subscribed to Spectrum plans, for cable and phone services. It is convenient and as easy as it could be, and I am enjoying a hassle-free combo service at all times. No doubt that their services are great and economical, however, the reason that I have become their business’s advocate is their supreme customer service.

There are a lot more reasons why customer service is significant and numerous ways you can guarantee that you are conveying the best services to your customers. 

Some of the strategies can be:

  • Understand the needs and wants of your customers
  • Treat your customers in a respectful manner
  • Act on the promises that you make to your customers 
  • Handle refunds and complaints professionally
  • Work on customer delightedness
  • Be interested in the best interests of your customers

Following are some of the reasons discussing why customer service is important.

Increased revenue generation

All business decisions are made in consideration of their impact on the overall revenue generation. The basic rule of business success is to measure the money coming in versus the money going out. A study conducted in 2020 has found that 84 percent of companies working towards better customer experience report a significant revenue increase. This means that prioritizing customers and customer service has the potential to increase revenue. 

Better Brand Reputation

Factually speaking, a brand with a positive reputation is more likely to grow than one without. It is reported that 69 percent of customers spread positive word of mouth after a good customer experience. This simply means that by giving your customers a better experience, you make your brand indispensable for them. In recent times, the most effective type of marketing is Word-of-Mouth marketing. Besides, what is better than making your customers your ambassadors, right? 

Increased customer retention

Customer retention is the easiest path to the success of any business. Keep your existing customers satisfied and happy can result in more accurate business forecasts, increased and stable revenues, and a better brand image. 

75 percent of people would likely come back to a company that provides excellent customer service. Most of the customers state customer service as the reason for their brand loyalties. 

Your product and service quality might be enough to bring them once, but if you want them coming, again and again, you need to focus on customer services.

Improved Customer Lifetime Value

Customer Lifetime Value or simply CLTV is the amount of money that a customer is likely to bring in your company over their course of engagement. CLTV has a direct relationship with revenue. 

According to some recent reports, we have found that highly involved customers tend to buy 90 percent more frequently. This tells us that engaging current customers with our social media accounts, emails, and customer support team can help in customer retention. 

Higher levels of employee satisfaction

A study conducted by Gallup found that employees that are highly engaged achieve a 10 percent increase in client ratings. 

Employees’ level of motivation and satisfaction increases with great customer reviews. Provide appropriate training and tools to your customer service staff and allow them to be a part of something bigger than themselves. Tell them how big of a responsibility it is to please the customers and empower them to take initiatives for better customer care.

Business longevity

Businesses can thrive only until the customers keep on buying their products and services. By this logic, the longevity of any business totally and truly relies on the satisfaction of its customers. As per a report by Fundera, 20 percent of small businesses lose all their funds in the first year while 50 percent fail entirely by the fifth year. These percentages are terrifying and while there can be plenty of reasons behind the failure of a business; customer dissatisfaction hails high on the list.

For new businesses, customer satisfaction is especially important, as it is the surest way to ensure business growth. Satisfied customers can help you in a lot of ways:

  • Satisfied customers support your business more from a financial point of view
  • Happy customers spread positive word-of-mouth and advocate your brand on your behalf

Bottom Line

Brand loyalty, brand image, brand positivity, and even transforming a business into a brand are dependent on the satisfaction of your customers. Keep your customers happy, put their needs above yours and you will see more success than you could have thought of!

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