Why is Customer Service Important To Your Business?

5 Reasons Why Good Customer Service is Important to Long-Term Business Success

 

85% of customers would rather spend more money with a company who consistently delivered an excellent level of customer care. Why is this?

 

Why is Customer Service Important in Business

Organisations who continually treat their customers poorly face a constant struggle to grow their business. Repeat business can only be achieved if a customer is willing to return to your company and is satisfied with the level of service they experience.

 
 

The importance of customer service can never be under estimated. Constantly attracting new customers can be financially costly, particularly for small businesses. Making your customers feel valued and happy can be the difference between liquidation or long-term success.

 
 

Warren Buffet once said, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

 
 

Ultimately, great customer support truly drives a brilliant customer experience particularly when your staff exceed customer expectations by going above and beyond the call of duty.

 

Why do companies fail to deliver great service? Corporate greed is a common cause, also, owners setting up a business and their sole intention is to only make a profit. A recipe for failure!

 

On the other hand, if your primary goal is to add genuine value to your customers, then your chances of growing a more profitable business becomes immensely stronger.

 
 
Why is Customer Service Important for Businesses

Customer Service Infographic by Live And Learn Consultancy

 
 

5 Reasons Why Customer Service is Important for Your Business

 
 

#1 – Customer Retention is A Popular Way to Increase Company Revenue

 
 

Ready for this? Depending on the industry you work in, it can cost up to x5 times more to attract a new customer to your organisation, than it costs to retain an existing customer.

 

Customer relationships matter! If that doesn’t highlight the importance of customer service in business, then I’m not sure what will.

 

On average, customers who experience poor service tell 9 other people the bad news. Don’t risk losing a customer due to heated arguments or customer conflict.

 
 

 

Angry Customers Complaints infogrpahic - Live And Learn Consultancy

 

The benefit of customer retention is your customers are more likely to stay loyal even if you increase your product prices. New customers are more price conscious where as long serving customer value your business over your competitors.

 

Want to increase your revenue? Improve your team’s customer service standards through our powerful 1 day Customer Service Training Program delivered on-site at your workplace.

 
 
 

#2 – Great Service Reduces Customer Conflict

 

All businesses experience customer complaints from time to time, it’s how you handle them that separates you from your competitors.

 

Customers appreciate honesty, own up to your mistake and put it right immediately. Do not react in a personal manner to complaining customers, even if they become aggressive.

 

React and behave with a professional mind-set and avoid complaints from escalating.

 
 
 

#3 – Excellent Customer Service Helps Convert Prospects

 

If you do not take care of your customers, your competitors will.

 

Your customer service team can be the main difference between a prospect converting into a valuable customer or leaving your business premises before they even reach the checkout.

 

Treating your customers well and creating positive interactions will help increase your sales revenue due to repeat business. On average, one happy customer can lead up to 9 referrals depending on your industry.

 
 

 

Happy Customers vs Angry Customers infogrpahic - Live And Learn Consultancy

 

How can you keep customers returning to your business? To retain a larger customer base, meet the needs of your customers and strive to keep them happy.

 
 

Related: Learn the basics of customer service

 
 

#4 – Reduces Employee Turnover

 

Your employees will pay careful attention to how your company treats its customers.

 

How does great customer service reduce employee turnover in the workplace? When they see positive customer relationships, friendly communication and even banter, it makes your employees feel proud to be part of a team that really cares about their roles and responsibility.

 

Employees are far likely to stay if respect is high on your company values.

 
 
 

#5 – Customer Excellence Raises Your Brand Profile

 

Brand value increases through consistently delivery exceptional service to your customers.

 

Word-of-mouth advertising is priceless. When considering why customer service is important, the reputation of your brand will trump everything else.

 

For example, 7 out of 10 people search for online business reviews before they make a purchase.

 

Before your customer makes contact with your business, they will consider or even research what other people have said before they are confident enough make a purchase. It is said that 90% of people will take the advice of friends or family when considering a purchase.

 

Don’t chase short term revenue, instead focus on building a brand that has integrity.

 
 

Want to Increase Your Team’s Customer Service Skills?

 

If you’re struggling to motivate your staff, or the quality of your customer service just isn’t meeting your customer’s expectations, Live And Learn Consultancy’s powerful one day In-House Customer Service Courses are perfect.

 
 

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