Customer loyalty, or an organization’s capacity to retain customers over time, is measured by a metric called customer retention. Company growth can soar if you’ve created a killer product and determined your target market. However, it’s critical to note that marketing to new customers requires more resources than marketing to existing ones. And that’s what your customer success team is there for—to assist consumers in realizing the benefits of and achieving their goals through your goods or services.
There’s more to customer service than merely returning calls and assisting customers- it’s about establishing a strategy from the outset that encourages communication, trust, and mutual development and pushes the customer toward the desired action. This guide offers a thorough examination of customer retention and the reasons it’s crucial.
Customer Service: The What’s And Why’s
When your company has a limited budget, a number of tasks are typically given top priority when allocating resources. There’s little doubt that your sales and marketing team could always use some extra cash and spending money on your customer service department could seem like inefficient usage of funds. After all, how could it possibly help? Contrary to what numerous individuals assume, your customer service team ought to be as significant as your other teams. After all, it serves as a direct line of communication between your customers and your company. Providing good customer service is crucial to your company’s success as it has the power to retain clients and get more value from them. Businesses that excel at customer service recoup the cost associated with acquiring new clients and build a devoted following who refers your product to others.
Investing in customer support can enhance your brand image because devoted customers will encourage potential customers to interact with your brand, resulting in free customer acquisition. Furthermore, their positive comments will be both more cost-efficient and effective than most marketing initiatives.
Now that we understand the importance of customer service, let’s examine 5 data-supported justifications for why you ought to reinvest in your customer service personnel.
- Even a small improvement of 5% in client retention can result in a 25% boost in profitability. (HubSpot)
- Customer service is significant to 96% of consumers when deciding whether to remain loyal to a brand.
- To receive better customer service, 67% of customers are willing to spend more. This shows that people value good customer service and are willing to pay a premium for it.
- 60% of customers give up doing business with a brand after one negative customer service encounter. And if the customer’s issue is fixed on the first interaction, 67% of this turnover can be avoided.
- When companies prioritize providing better customer service, their sales can increase by 4% to 8% above the market. Additionally, 89% of businesses outperform their rivals financially when it comes to “substantially above average” client experiences.
Given that we understand the importance of customer service and how crucial it is, how can you strengthen your customer service game? Before COVID-19, companies were progressively investigating fresh, digital approaches to customer engagement and assistance. However, after the pandemic struck, this timeframe quickened and businesses had to engage with customers via live chat, video calls, or social media. These means of communication will be around for the foreseeable future. In addition to enjoying using these channels, customers will eventually start to take them for granted as being standard in the customer service world. Given the importance of customer service, businesses must thus invest in omnichannel solutions to connect these new platforms and provide a smooth client experience.
Unsure of how to leverage Omnichannel solutions? First Credit Services has got you covered. With over 25 years of experience, First Credit Services offers accounts receivables engagements, debt collections, and customer service outsourcing to all industries. Our omnichannel platform, OmniXP, offers distinctive consumer interactions and individualized experiences. It gives customers the freedom to pick how they want to get in touch with us and opens up a choice of channels for them to do so. Contact us to learn more!