When your business is operating on a restricted budget, you have probably allocated your funds for many high-priority functions and activities. Your product team would certainly need some financial assistance along with the advertising and marketing departments. However, investing in your customer service team might seem like a waste to invest. What could a customer service team possibly improve?
Contrary to the common notion, your customer service department must be just as crucial, if not more, as any other team. There is a very direct correlation between your customer service and customer loyalty and ultimately your business growth. In today’s highly competitive environment, it takes more than just a killer idea and some funds to get a business off the ground. Exceptional customer service must be an integral part of your business DNA right from the start.
Here we have discussed some important reasons why you should invest more in your customer service team.
- Customer Retention Is Cheaper Than Customer Acquisition
As small as a 5% increase in customer retention can lead to a 25% rise in profit. The reason why retaining older customers is cheaper than attaining new ones is that repeat customers are more likely to invest in your brand, and as a result, your company has to allocate fewer funds for their operating costs. According to research, the customer acquisition cost (CAC) is more for a business that does not invest in its customer services. investing in a customer service team can lower your churn rate which in turn reduces the amount that you have to spend on acquiring new customers.
- Customer Service Represents Your Brand, Mission, Image, And Values
While you might have a solid idea of what your brand represents or what it stands for, your customers cannot possibly get inside your head. They will make judgments based on your marketing efforts, social media presence, content, advertisements, and other forms of external marketing. The only team that has a direct connection with potential customers is your customer service team. The team is therefore carrying an important responsibility of representing your brand. Without a proper customer service team, you don’t have any means of direct communication or interaction with the consumers. A customer service team is therefore important in conveying to the customer what you want your brand image to be.
- Satisfied Customer Service Employees Will Create Satisfied Customers
If your customer service employees feel under-appreciated, chances are that they wouldn’t be pumped to come to work every day. According to statistics, 85% of employees who are satisfied with their jobs are willing to work incredibly hard for their company’s customers. If you want your customer service employees to give an optimal performance every single day, you have to make sure that they get equal respect, appreciation, and recognition as any other teams’ employees. Only then, they can find the motivation to do a great job and serve the businesses’ customers the best way. It will also lead to your customers feeling more appreciated and respected.
- Good Customer Service Encourages Customers to Remain Loyal
There is a direct correlation between customer service and customer loyalty. No matter great your products or services are if your customer service is not up to the mark, it is likely that the customers will look elsewhere where there are better customer care and handling. When the customer has a positive experience with your company, they will have no reason to look somewhere else. Therefore, it is cheaper to retain old customers than to attain a new one. The greater the customer’s lifetime value – the total revenue a business can generate from a single customer over the course of their association with that business – the greater the profit for your business. By delivering exceptional customer service, you can make your brand stand out amongst the competitors in the industry.
- Customers Pay More to Companies Who Provides Better Customer Service
Around 50% of consumers increase their shopping from a brand that provides a positive customer service experience. As a matter of fact, 85% of customers are willing to pay as much as 25% more to receive better customer service. It is evident that customer service matters a great deal to the customers as they are willing to pay considerably more to interact with a business that does it well. These facts and figures cannot be ignored. In the age where businesses are learning to invest more in their customer service, any company that fails to do so will burn and crash. One positive experience could very well serve as a deciding factor whether they want to stick to your brand or not.
It is indisputable what a well-trained, exceptional customer service team can do for your brand image and company profit. Their ability to interact with customers directly can completely transform your business and expand your customer base.