Why Customer Service Is Important For Your Small Business

  • 24 Oct 2019
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    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. 

     

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    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

     

    It represents your brand image, mission and values | Bulb And Key

     

    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. 

     

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    2. Good customer service encourages customers to remain loyal

     

    Good customer service encourages customers to remain loyal | Bulb and Key

     

    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

     

    Customers are willing to pay more for better customer service | Bulb And Key

     

    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

     

    Satisfied customers will refer others | Bulb And Key

     

    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

     

    Customer retention is cheaper than customer acquisition | Bulb And Key

     

    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. 

     

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    6. Increase in customer lifetime value (LTV)

     

    Increase in customer lifetime value | Bulb And Key

     

    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!

     

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    Posted in Business