You can have great products and services but still struggle to attract and retain customers. While most companies have strategies to improve their investment in customer service, evidence shows that customer expectations are not being met. A recent survey shows that more than 50% of customers have not noticed any improvement in customer support, with around 23% experiencing a diminished quality of service. Nothing is as crucial to a company in the modern competitive business environment as adequate customer support. This article explores the importance of customer service for your employees and business.
What Is Customer Service?
Any entrepreneur or business that is serious about growth and sustainability must realize the significance of rock-solid customer service. Customer service is not just about the client always being right but treating them as you would your family. Here, customer service implies the strategies and policies outlining how the company interacts with its customers in day-to-day interactions and when issues emerge.
Effective customer service directly and meaningfully impacts your company’s profitability and retention. Therefore, companies that struggle with customer service should consider technical support outsourcing.
Why Is Good Customer Service Important for the Business?
So, why is customer service important for your business? Evidence shows that excellent customer service makes employees’ work more accessible, reducing stress, increasing job satisfaction, and increasing productivity. The happier your employees are, the more productive they are. Here is a deeper look into why customer service is suitable for your employees:
Another reason why customer service is important is that it makes employees more productive. When representatives can provide excellent customer service, they solve issues faster, meaning less time is spent interacting with customers. The time they save can be used to perform other tasks that benefit the organization. B2B companies that give support agents a way to solve problems fast reduce support workloads. You need to provide the right environment, tools, and skills to make the work of support agents easier.
Undoubtedly, dealing with customers daily can be a stressful experience. Agents have to deal with complicated issues and often work under time constraints. If you throw agitated customers into the mix, the work of a customer support agent may seem impossible. Therefore, it is not shocking that the turnover rates for customer support agents lie between 30% and 40%. Providing customer agents with the right tools and training will improve their morale, lower stress, and reduce turnover. Remember, turnover can be very costly for your business.
Increased Return Purchases
When looking at how important customer service is, we need to consider customer loyalty. Evidence shows that a positive customer service reputation increases the likelihood of people doing business with your company. According to a recent survey, 90% of consumers in the United States indicated customer service as the most important factor they consider when choosing a product or service provider.
In other words, if your company has a reputation for excellent customer service, many people will want to do business with you. A high rate of new and repeat purchases means increased revenue for your business. This is why surveys show that great customer service companies grow their revenue by between 4% and 8%. Also, outstanding customer service will protect your customer relationships if they experience disappointments.
Improved Customer Retention
Another element of customer service importance is retention. Companies prioritizing great customer support can better gain and retain new clients. Evidence shows that most customers choose not to stay loyal even when the company offers good products because they don’t feel valued by the brand. Furthermore, more than 55% of customers make purchasing decisions based on the company’s reputation for excellent customer service. Remember, retaining existing customers can be five to ten times cheaper than attracting new ones.
Excellent customer support is instrumental when introducing new services or products. The better the support quality, the more likely clients will stay engaged with your brand. Also, positive customer service plays a significant role in improving brand awareness, primarily through word-of-mouth advertising.
Improved Brand Value and Reputation
Brand reputation is another crucial purpose of customer service. Customers tend to share their negative experiences with others, which could damage your brand’s reputation. In the digital world, negative reviews and bad feedback can cost you thousands of customers and could damage your business. Since customer service agents link the firm and its clients, customer service can make or break your brand reputation. A good brand reputation can also attract investors, partnerships, and employees. In other words, positive customer service is excellent for your brand value and reputation.
A Final Word
Are you looking to improve your company’s profitability, resilience, and growth? This article has outlined the importance of good customer service. The customer service department is an excellent place to start. Evidence shows that well-trained and motivated customer service agents can reflect a positive company image besides attracting and retaining customers. Always remember that the customer service team links your company to its customers.