"Any of us can achieve virtue, if by virtue we merely mean the avoidance of the vices that do not attract us. "
- Robert Lynd
For any business, the most important factor for long-term sustainability is customer service. By providing top-quality customer service, businesses can recoup customer acquisition costs and get a loyal customer base.
When it comes to small businesses especially, investing in customer service helps activate your business growth because loyal customers will gradually help you acquire new customers through word-of-mouth. Tḥis is more effective than using your own marketing materials and salespeople.
This is just one aspect of the importance of customer service in business. Here are the other ways in which small business customer service can help –
1. It represents your brand image, mission and values –
How you treat your customers directly affects your brand and what it stands for. A lot of the times, your customers do not know what your brand represents, but providing them with good customer service will give them a fair idea of what you believe in and what your brand’s goals are.
2. Good customer service encourages customers to remain loyal –
As already known, it is a lot cheaper to retain an old customer than to acquire a new one. If your customer has a continual positive experience with your brand, then there is no reason for them to look elsewhere.
3. Customers are willing to pay more for better customer service –
According to a survey, 50% of customers increase their purchasing with a brand after a positive customer service experience. In fact, 86% of customers would pay more in order to get a better customer service experience. Clearly, customers are willing to shell out more in order to interact with a brand that does it well.
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4. Satisfied customers will refer others –
Great customer service leads to your customers being happy, and this means they are more likely to spread this goodness to their family, friends and acquaintances. Remember, your customers can be the best and most cost-effective form of word-of-mouth advertising.
5. Customer retention is cheaper than customer acquisition –
This simply means that focusing on your old and existing clients is better than putting all your resources on trying to get new customers. According to a study, repeat customers are more likely to spend 67% more with your brand. This results in lesser operating costs for your business.
6. Increase in customer lifetime value (LTV) –
The customer lifetime value indicates the total revenue that a business can expect from a single customer account. An increase in customer service will gradually lead to an increase in the LTV.
It’s undeniable that having a proper, dedicated customer service system in place can make your business the best version of itself.
So now that you know the importance of excellent customer service, make it a top priority for your business if you haven’t already!