Why Customer Service is Essential for Booming Businesses

There are many factors that contribute to a successful business, but customer service is one component that is often overlooked. Many believe that this is not as important as other aspects of the business, though we beg to differ. What is more important than the direct connection between your customers and your business?

Today, there are more options than ever before, and consumers are realizing that they can easily take their business elsewhere if they have had an unsatisfactory experience.

Possessing excellent customer service is a strategy that will lead to customer satisfaction, hence eventually resulting in business growth. How do you get from one stage to the next? What is the timeframe to realistically expect growth? An experienced business coach will be able to guide you on the why’s and how’s your emphasis on customer service should be. Read on to find out the reasons why customer service is so important.

Customer expectations

The COVID-19 pandemic has escalated consumers´ expectations of customer service and the acceleration of omnichannel solutions. Being proactive in leading your business towards this path is a move that many management teams have yet to undertake. Today, it is no longer sufficient to simply have a customer service team; you are now expected to offer top-notch service and be ready to assist almost instantly. A study conducted by Talkdesk®, Inc., the cloud contact center for innovative enterprises, showed that 58% of those surveyed stated that they have higher customer service expectations today than a year ago.

Due to the ongoing global pandemic, many businesses have employed digital channels such as live chats and social media to support their customers. This is an approach that is set to be a permanent fixture as customers are now going to demand this as the norm, and not as a luxury. This sneak peek into the future provides businesses a heads-up into investing in omnichannel solutions so that they can pull ahead of the rat race in creating a seamless customer experience.

If your organization has yet to make any moves in this department, consult an executive coach to steer you in the right direction. You can start by taking our free Business Growth Scorecard assessment: https://businessgrowth-jasonballard.scoreapp.com/

Customer retention

Your management team should emphasize the importance of customer satisfaction to ensure that your customers do not migrate to your competitors. Good customer service leads to customer satisfaction, which results in the likelihood of your customers wanting to do business with you again. This creates customer loyalty, and your business will enjoy an increase in sales and profit as these repeat customers are more inclined to spend more on your business. Studies conducted show that an increase of 5% in customer retention can generate a 25-95% profit increase, which demonstrates that retaining current customers is cheaper than acquiring new ones.

With this increase in customer retention, your customer lifetime value will grow alongside. This important metric represents the total anticipated revenue from a single customer and is the fruit of frequent shopping. An exceptional experience with your customer service team provides a higher guarantee of repeat business, which would allow you to cross-sell and/or upsell products.

Discuss the possibilities of repeating and expanding business with a business coach, who can help you achieve your goals.

Customer referrals

Developing a powerful yet cost-effective strategy is a challenge many businesses face, yet it is one of the most effective ways to outshine your competitors. A positive customer experience does more than just having a satisfied customer. These customers are more likely to leave a positive review online and share their experiences with others. According to Esteban Kolsky, the principal and founder of ThinkJar, a research think-tank focused on customer strategies, 72% of customers will share a positive experience with 6 or more people.

This is beneficial for your business in multiple ways:

  • You build rapport with your current customers.
  • Your online presence is enhanced and your company is awarded recognition and exposure, thus resulting in customer acquisition.
  • Free advertising, in the form of word-of-mouth, is generally perceived as more trustworthy and valuable due to the fact that they come from familiar sources.

Customer referral can be difficult to accomplish, so talk with a business coach to guide you through the process to ensure that you apply the most suitable strategies. At Soar Higher Coaching, Jason offers a free consultation. Book here: https://calendly.com/jasonballard

Competitive advantage

Employing top talent in customer service is a vital element to making sure your business stands out in this competitive landscape. You want the consumers to know that your company is better, and the key to enticing them to choose you over your competitors is superb customer service. This is particularly true for small businesses and businesses whose competitors offer lower-priced products.

There is a higher possibility of consumers wanting to do business with your company, even if there is a cost difference if you provide better customer service. Customers want to know that they are able to continuously interact with your brand and will not be left stranded should something go wrong with their purchase or if they need assistance post-purchase. Differentiate your company to retain your customers and acquire your competitors´.

Willingness to pay

A good business plan meets your objectives and places you where you want to be. However, a great business plan goes beyond what is planned and enjoys additional perks, such as the customers´ willingness to pay a price premium if there is excellent customer service. Based on a research study from PwC, customers are willing to pay up to a 16% price premium on products and services. This is a tangible payoff that validates the importance of customer service and should not be ignored.

Customers are affected by a single experience, and that one positive experience can be the key to converting them into loyal customers. In this era, the trend is shifting towards the customers’ desire to pay more to assure themselves of the ability to interact with their brand of choice.

Jason can guide you through the process of converting customer service into measurable gains by working with you to develop a strategy customized for your organization. If you want to learn more about what else we specialize in, visit our training page.

Distinguishing your company through outstanding customer service is a sure-fire way to get ahead in the competition. Foster customer relationships to gain trust and loyalty, hire people who understand the importance of quality customer service and provide training on customer service policies and conflict resolution skills. These are the people representing your business, and you want to ensure your frontline staff are equipped with the right tools.

The importance of customer service cannot be more crucial in today’s business environment. Cushion your unforeseen future mistakes with world-class customer service that will put you in a soft spot with your customers. It has been proven that 78% of consumers will forgive a company for a mistake if they had received excellent customer service, and this is a good buffer to keep in the backseat.