Customer service is important because it can help maintain or improve customer loyalty and satisfaction, which can extend your customer lifecycle and lifetime value.
According to huify.com, acquiring a new customer is five times more expensive than retaining an existing one.
This is why your business should be focused on retaining customers, alongside acquiring new ones.
How Can Customer Service Help My Business?
Supplying a great customer service experience to your clients can be a great way to increase customer loyalty and positivity around the business.
Great customer service can increase the chance of getting positive reviews, referrals and repeat business.
6 reasons why customer service is important
In this article, we will cover 6 reasons why customer service is important and how it can help drive more customers to your business, plus keep those long term customers using your services.
Customer Retention
Customer retention is an important part of maintaining a successful business, with many companies overlooking it as a profit funnel they can optimise.
As we have mentioned previously, huify.com, have said that acquiring a new customer is five times more expensive than retaining an existing one. This means that for every £50 you spend trying to attain a new customer, you could spend £10 attaining an old customer.
Increase Customer Lifecycle with Customer Service
Improving the way your customers can communicate with your business can be a great way in prolonging their customer lifecycle.
If we look at the customer lifecycle model from smartinsights, we can see that when attempting to create lapsed or loyal customers, customer service is mentioned in two of the four techniques businesses typically use. The two they mention are “social customer service” and “1st class customer service”.
“Social customer service” is the tactic of communicating with customers through social media, you can typically see this type of customer service from complaint departments and offering guidance about products and services.
“1st class customer service” is fairly self-explanatory, having great customer service can help retain customers in the long-run.
Address Business Issues
When running or growing a business, issues will arise, both internally and externally. Having a well-established customer service department can be a great way to hear your customer's opinions and complaints.
Obviously, any business does not want complaints but this can also help streamline your service, leading to further sales by listening to your customers and implementing fixes.
Positive Reviews
According to brightlocal, 87% of consumers read online reviews for local businesses, and 40% of consumers will consider leaving a negative review after a poor customer experience, whilst 67% of consumers will think about leaving a positive review after having a nice customer experience.
The evidence is clear to see, reviews matter! Typically, when frustrated with a service, many consumers may reach out to a business through their customer service. If this process is frustrating, or complicated, the chances of receiving these negative reviews will increase.
Adding further features to your business's customer service may be worth thinking about. For more information on the features you can add, please feel free to check out Virtual Landlines feature list today.
Increased Conversions
Increasing the quality of your customer service can be a great way to improve your business's conversion rate.
Giving your customers a customised customer service experience through the use of detailed features, such as an IVR auto-attendant or a Virtual Receptionist, can give your clients the service they deserve, increasing brand loyalty and conversions.
Adds Value to your Business
As we have mentioned before, improving your customer service can be a great way to add value to your business.
Through positive customer experiences, positive reviews and addressing your businesses potential issues can help your business grow and turn into a company with a growing reputation. This can have many perks, including confident employees and loyal customers.
Customer Service
To conclude, spending a part of your businesses resources in improving your customer service can be a great way to improve customer satisfaction and retention.
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