With the evolution of technology, customers have totally changed the ball game for businesses. Companies have to be always on their toes to give service to their customers. With so many options available in the market, customers have become more demanding than ever. Just a small gap in giving service to the customers, they would immediately switch to another vendor. Hence, customer support has become as important as the quality of the product itself, if not more.
While there are many advantages of having great customer support in place, here we have listed five of the most common advantages that you may look at.
#1 Business expansion
Most of the technology based product companies work on the principle of ‘land and expand’. What it means is that with the initial purchase of your product, companies get the opportunity to land into their customer’s territory.
If the customers are well satisfied with your service, you will get more opportunities to upsell them a higher version of your products. And if your company produces other relevant products then those products can also be recommended to customers for their higher immersion into your company. The crux of this point is that a satisfied customer opens new avenues for your business expansion.
#2 New Customers
On time customer support is most important to earn customer’s loyalty. A loyal customer is a gift to any business. One of the most common metrics in SaaS business to measure customer loyalty is Net Promoter Score. This is just a simple one question survey that you can send to your customers in which you ask them how likely they are to recommend your product to others.
Out of a scale from 1 to 10, if they respond with 9 or 10 then they are considered to be your brand advocate. It means they are happy with the service you are giving to them and hence, would attract more customers to your business. This kind of word of mouth marketing is most impactful for any business and the customers who buy from your brand through this marketing channel tend to be more loyal and satisfied in the longer run.
#3 Higher revenues
With a higher quality service you give to your customers, more new customers will start flowing into your business. This means your company would start generating more revenue. With higher revenue, the whole structure of your business can be changed for better. You would have a surplus amount to invest in better technology, hire more employees, expand your sales and the overall health of your business can be improved. But you have to make sure that the accountability of such investments are taken under consideration so that it doesn’t go to the waste of your resources.
#4 Better work environment
The kind of response you get from the customers on your services has a direct impact on the working environment of your company. If your customers are happy while interacting with your customer support team then that positive energy flows into your employees too. Your employees would feel more encouraged and they would give their best at work. The job satisfaction they would have would make them deliver beyond expectation service to your customers. For any company to have a dedicated and loyal workforce, the work environment should be suitable in and out.
#5 Higher Customer Lifetime Value
The companies with happy customers have a more loyal customer base in their portfolio. The cost of acquisition they spend on new customers have to be mitigated with the business generated by the customers. Hence, companies need to always focus on how to increase the customer’s lifetime value (CLV). It is defined as the total business a customer generates during their entire relationship with a company. It also has a major impact on investors when they evaluate your company to decide whether to invest more or not. A company having a higher CLV means it can generate more profit in the longer run.
Having a happy customer is one of the most important aspects of any company aspiring for growth in the modern era. Any company who is investing in giving greater customer experience to their buyers are thinking from a long-term perspective. This is what separates them from rest of service providers. In today’s digitally connected world, news, reviews, testimonials mean everything to a company. It is only based on these reviews from the customers the company’s online reputation is formed. And if an extraordinary service is being provided to the customers, then the benefit of it surpasses way beyond measurable limits.
Author Bio: Shoeb
Shoeb hails from the IT background with an experience as a Software Architect. He is a techno-business enthusiast and loves to research and write about evolving SaaS industry. In his free time he plays classical pieces of 18th century’s Spanish composers on his classical guitar.