Any businesses looking to make a strong success must never underestimate the importance of customer service. Not only for financial reasons but for the many benefits that excellent customer service brings. Here are 8 reasons why good customer service is your most important metric.
1. Customer retention is less expensive than acquiring new customers
Typically, it can cost around five times more to gain a new customer than it does to keep an existing one. This alone is a prime reason to offer exceptional service and care.
2. Existing customers are more likely to buy from you
When a customer already knows what you do and knows your product, they are far more likely to use your business again. New customers take longer to be convinced by a company they’ve never used before.
3. Great customer service reduces the risk of problems
If you offer a great customer experience you are less likely to encounter conflict and issues caused by irate or unhappy customers.
4. Excellent customer service strengthens your brand
When your brand is associated with great customer service it improves your overall perceived image. This makes it more likely that customers will recommend you to others and speak of you in positive terms.
5. You’re more likely to keep customers for longer
Customers are unlikely to turn their backs on a company that offers excellent customer service. Rather than risk poor service elsewhere, you’ll see longer commitment to your business.
6. Word-of-mouth advertising is the best and most affordable form of advertising
Marketing and advertising can be costly, but word of mouth is completely free of charge. Not only that, but it is one of the most reputable types of marketing, as people trust their friends and families.
7. Great customer service opens doors for new partnerships opportunities
Looking after your customers sets your company in a positive light, making new partnerships more likely. Opportunities are likely to arise when others hear of your commitment to looking after your customers, which could lead to powerful collaborations.
8. It elongates the life of any business
Very few businesses last beyond their first 10 years. In fact, the failure rate is around 96%. Focusing on your customer experience opens up the potential for higher success in your business.