Why does customer service matter

Although providing an excellent service can involve extra resource, time and money, when you get it right it will enable you to stand out from your competition, maintain a positive reputation among future customers and encourage existing customers to purchase from your business again. Remember, it is six times more expensive to acquire a new customer than to retain an existing customer!

Customer service is important because it can help you to:. There are many more reasons why customer service is important and many ways you can ensure you are delivering the service which creates the perfect experience for your customers. All of the above approaches will contribute towards the customer feeling valued which over time can maximise their customer lifetime value with your business.

If a customer visits the shop 3 times a week, 48 weeks of a year; in 20 years they have spent the equivalent cost of a brand new car! Performance in People PiP works with a wide variety of world-class organisations to measure and improve customer service through the use of various mystery shopping techniques , customer surveys and training. Spaces are limited so book now to avoid disappointment. We look forward to welcoming you on the day!

Let them know how much each customer depends on their work. The intangible feeling of having a purpose motivates people far longer than free food ever could. When you create a culture of serving people, your employees follow suit. Engineers help the sales team. Product listens to customer support reps. Teammates work together with kindness, compassion, and, above all, respect. Some companies write it on the office walls or make their employees memorize it.

Company culture exists whether or not you define it. By valuing customers, and tirelessly working to serve them, you simultaneously create a company culture of helpfulness. Work gets done faster, productivity goes up , and both employee and customer sentiment thrive in a more collaborative environment. The coolest brands on the blocks — meaning, those with the most and best brand awareness — get all the fame and fortune.

Positive customer experiences play a huge role in brand awareness, as they often lead to word of mouth advertising. Provide a positive experience for existing customers and watch them rave about your brand. Analytics help you track awareness by measuring everything from online reviews to social media sentiment to recommendation potential. Customer marketing involves turning existing customers into advocates. Save money and time with every loyal customer. Not only do they purchase more, but they also bring in new business.

When everyone at a company has the same end-goal, the entire workflow becomes streamlined. Place the ultimate emphasis on your customer, then move through each department to align them behind customer service. For instance, when everyone is on the same page, the flow for bug reports should look something like this:. To make sure this collaboration spans the long-term, set a larger goal to improve a customer experience-based metric , like NPS.

Then, put the responsibility on every department to move the needle. Business owners take a huge risk when founding a company. For scaling start-ups, providing an excellent customer service experience is the surest way to keep up momentum and minimize loses.

Reasons for failure range from lack of funds, to misunderstanding of market value, to inability to sustainably scale. Customer service is one of the most under-valued assets in business. If you can prove its worth, and get your team on board to harness its power, its success impacts every level of your organization. Are we short-sighted, merely searching for the next pay day, or does our vision give us a deeper understanding of the long-term implications of our actions?

Clearly, if you want to make strides today, you really do have to place the customer on a pedestal. And while there are ample reasons why any person should start a business in the first place, everyone needs to pay homage to the customer so that they can stay in business.

The less short-sighted the approach is from any enterprise, the more likely it will be to achieve long term success. On average, it costs approximately five times more to attract a new customer to your business than it costs to retain an existing customer. That logic on its own should highlight the importance of providing excellent customer service.

Why risk losing a customer? It's costly enough to locate new customers in the first place, and every business should do whatever it takes to ensure they stay happy and continue doing business with them. Related Book: No B. Aside from simply trying to retain your existing customers for sake of it being less expensive to do so, it's important to note that selling anything to anyone new is also far less likely. For the most part, the probability of selling to a new customer hovers in the range of percent, whereas selling to an existing customer resides in the range of percent.

By treating your customers like gold, you are sure to reduce the overall problems associated with your business, sales and the potential for any legal issues that might arise. Treat your customers poorly, and you can almost be certain that you'll run into problems at one point or another. And those problems can oftentimes lead to the ominous and untimely demise of your business. If you're interested in public perception, your reputation or the strength of your brand, you absolutely have to insure a high quality of customer service.

Not only does this result in positive reviews, but it helps to solidify you in the minds of anyone searching for your type of products, services or information. When you offer a great customer service experience, your customers are far more likely to stick around and use your business any chance the moment arises.

Even when it comes to ancillarly services, consumers more willing to work with a business that they've had a great experience with before than to find someone new. You absolutely cannot buy word-of-mouth advertising -- the kind that can have a monumental affect on a business.

It's priceless. People are considerably more likely to listen to the advice of a friend than they are to heed the guidance from some online review or advertisement. Whether you're trying to make money online or offline, great customer service will create an army of raving fans that will champion your business for you. Employees pay careful attention to how a company treats its customers.

That resonates powerfully with people. When they see an employer treating their customers like gold, it delivers a sense of endowment, making them proud to be part of the team and making them more willing to stick around. When employees, on the other hand, are taught to undercut and discount customers for whatever reason, it does quite the opposite. Treating your customers like gold is infectious.

It opens the doors for new partnerships, especially when other businesses see just how well you take care of your existing customers. It says a lot about a company and what they value when they care deeply about their customers. It's something that you rarely find in business these days, but it most certainly paves the way for powerful parternships, collaborations and other opportunities. Taking care of your customers conveys a strong set of moral values and beliefs in the company's mission.

It means that it's transcending the necessity for profits by focusing on building its tribe. It also means that there are greater forces at work here than mere profits. It's indicative of a deeper desire to build something of value, to help others, and to somehow, in some way or another, change the world a bit by doing so. Today, only four out of every businesses last through until the year mark.