Why Good Customer Service is Important
Great customer service programs should focus on treating customers well, answering questions and exceeding expectations. This approach helps businesses engage customers and build strong relationships.
Retains customers
Keeping loyal customers is less expensive than getting new ones. Research shows that it costs about five times more to attract new customers than to retain existing business. Satisfied customers become devoted buyers when a business is trustworthy and provides good customer service. Research shows there is a 60% to 70% likelihood that satisfied customers will return to make new purchases.
Creates endorsements
Loyal customers provide positive endorsements and good online reviews that can help businesses strengthen their brand. A loyal customer, on average, is 10 times more valuable than their first purchase. Research shows that people often make purchasing decisions based on recommendations from family and friends vs. advertising messages. Here are four statistics:
About 97% of customers will tell others about very good or excellent customer service experiences.
Nearly 70% of people would spend more money with a company that has excellent customer service.
Approximately 24% of satisfied customers will return to a business two or more years after a good customer service experience.
Research shows that 59% of people would try a new company to receive better customer service.
Prevents business failure
About 96% of businesses close their doors within 10 years. One of the contributing problems is poor customer service. Buyers become frustrated over small problems that are not addressed. It happens when a business does not have good customer service associates who follow up on questions and promptly fill requests.
Reduces employee turnover
Employees want to work for businesses that appreciate worker contributions, encourage new ideas and treat customers fairly. When people work for an employer that provides good customer service, they are more engaged in their work. They become advocates for the business. Plus, they are more willing to stick with the company through business challenges and economic changes.
- Customer service represents your brand image, mission, and values.
You may have an idea of what your brand represents. However, your customers can’t get into your head, and they’ll make assumptions based on your social media presence, advertisements, content, and other external marketing.
Your customer service team, however, is where you have more control over this perception. These individuals speak directly to your customers, and they have the responsibility of representing your brand when interacting with current or potential buyers. In fact, 96% of customers say customer service is important in their choice of loyalty to a brand.
Without your customer service team, you have no means of direct communication. Due to this, your customer service team is essential in relaying to customers what you want your brand image to be. They can help influence customers and convince them of your strengths over competitors.
So if you have a business of luxury robes or luxury bike tours in Mexico, it is important to have excellent customer service if you want to retain customers, and they can recommend you to other people.