Creating and marketing a quality product or service is only half the battle for any successful business. It’s equally crucial to offer your consumers great customer service so that they may come back after the initial purchase for another order. It is, after all, both a transaction and an experience. Adding to this, it can make your clients feel good about the transaction. They will subsequently be more inclined to visit again and reorder. Reordering boosts profitability as it saves money on marketing expenses to acquire new clients.
So how exactly do you start your journey toward excellent profits? Your customer service division is a terrific place to start if you’re searching for strategies to boost business profitability. Having skilled and competent personnel can substantially improve your brand image. In this article, we’ll discuss in detail what customer service is and why it is so important.
What Is Customer Service?
Customer service is the way your business engages with its clients. Your staff acts as the first line of defense in responding to your customer’s feedback and is essential for long-term client retention, which has a direct and significant influence on your company’s revenue. Providing great service will help and empower your customers throughout the whole purchase process.
5 Reasons Why Customer Service Is Important
Here are five reasons why providing great customer service ought to be a top priority for any business:
A satisfied consumer is more likely to do business with that firm again, and the more devoted customers you have, the more your business can develop to its maximum potential. You’re more likely to have a higher degree of customer retention in addition to building a loyal customer base that cherishes your service.
Increases The Value Of Your Service
Even the best products/services have their limits. The value of your offering quickly rises if you include great customer service in the mix. Additionally, improved value can result in higher sales. In fact, the majority of consumers will gladly pay extra for an identical good or service if they receive great customer support.
Reinforces The Brand And Corporate Values
Since the personnel of your team interacts with consumers often, they bear primary responsibility for upholding the vision and core principles of your company. For the same reason, positive reviews matter a lot. Positive reviews and word-of-mouth recommendations for your company can arise from providing great customer service and bringing in new customers. As a result, a positive public image can improve how customers perceive your business, goods, or services.
Churn counts the number of customers who abandon a retailer after making a purchase. It offers a reasonably straightforward way to gauge satisfaction. When customers are dissatisfied, they leave. The significance is obvious when it comes to churn: 89% of customers start doing business with a competitor after having a bad experience. Your product/service may or may not be perfect, but flawless customer service is more likely to put the customer at ease and retain him than not. Thus, it is important to focus on providing great customer service and consumers from defecting rather than driving them straight into the arms of the opponent.
Improve Customer Lifetime Value
Client lifetime value, or CLTV, is a measure of the potential revenue a customer may deliver to a business over the length of their relationship. Revenue and CLTV are directly correlated. But how does it apply to customer service? If your company prioritizes CLTV assessments, it will be easier for the concerned team to see any alarming trends and come up with solutions accordingly. For instance, if you notice that the CLTV is persistently low, you can try to improve your approach or loyalty program to better serve your consumers. Furthermore, when you are aware of a customer’s lifetime value, you are also aware of how much money they will ultimately spend with your company. Given that information, you can create a customer acquisition plan that focuses on clients who will make the biggest purchases from your company. The staff is involved in anything that concerns the client. According to a recent study, highly engaged consumers purchase 90% more frequently, spend 60% more each transaction, and have a 3x higher yearly value.
Now that we know how important it is to provide great customer service, how can we streamline it to cater to our consumers? In lieu of the current technologically booming world, an omnichannel approach can help solve your problem. In a smooth and connected network of devices and touchpoints, omnichannel customer service provides a smooth and streamlined experience that lets your team serve the better. The core of omnichannel customer service is making sure consumers can use their chosen channel and have a convenient and exceptional experience. So how exactly will one integrate omnichannel into your business? FCS has got you covered. First Credit Services is a BPO company with over 25 years of experience working with some of the most well-known companies in the world. We specialize in accounts receivables management, customer service outsourcing, credit collection services, and more. Customers have the choice to select how, when, and where they communicate with us thanks to OmniXp, our Omni channel platform which delivers individualized experiences and outstanding interactions.
Contact us to learn more.