The TRUE Importance of Customer Service: No More Secrets
A question 'why is customer service important?' is no longer rhetorical. We've compiled everything you need to know on this point and created a list of 7 undeniable reasons (with a bonus tip inside!).
Written by Olesia Melnichenko
I would lie if I tell you that the world knows just a pickle of theories and disputes about how to achieve impeccable customer care. However, we do forget to explore why customer service is important.
The concept is not limited to a simple ‘it drives sales’. The true value is the client base that can give you their loyalty. Moreover, a customer support department should be as essential as other teams within a company. After all, there’s a direct connection between them.
Now, on to the meat and potatoes. Why is customer service important and how to correlate your business with it and reap absolute benefits? Let’s crack that down.
Why customer service is important: 7 reasons you should know
We at HelpCrunch – a full-house customer communication platform – make no doubts about the ultimate importance of customer care. Here is the list of reasons we’ve put together that can convince you of the same. Tick off your fingers:
1. Your brand image is transformed
A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well.Jeff Bezos (CEO of Amazon)
I can’t but agree with the statement above. Customer service agents accept the challenge of dealing with both angry and satisfied clients. To put it simply, they set the tone for the whole interaction.
Your helpful attitude forms the brand image, which contributes to a positive first impression. The stats actually speak for themselves. 73% of customers love a company because of friendly assistance.
Everything that implies handling peoples’ complaints is serious. One of the greatest mistakes a business can make is leaving customer support up to chance. I bet it’s not about you.
To be on the safe side, create a well-thought-out communication strategy so that every support agent knows how to chat with clients smoothly. Proper customer service training won’t go amiss, too.
2. Marketing opportunities jump high
70% of customers appreciate a brand more if it takes the initiative and contacts them first. This is what proactive customer service is all about. Showing your dedication to lend a helping hand any time can be a win-win solution. This way, they will know you’re working hard to remove any possible handicaps from their user experience.
Being proactive isn’t just about customer delight. It’s also a powerful marketing tool you can take advantage of. For instance, if you roll out a fresh feature that solves common problems, your support team can refer it to your customers in the personal email newsletter addressed to those who requested the feature in question.
Consider broadcast emailing with all your recent product improvements. Such an approach can be even more effective than a sales pitch as clients feel like their needs are fully met.
3. Honest feedback is no longer to beg for
Though feedback can make or break your business, it’s still what you may need to hold up well. 47% of customers will speak up on social media and tell everyone about their complaints.
But here’s something even trickier. Only one out of 26 clients will bring up their complaints. The others will switch to another brand.
Team leaders, developers, and everyone who is working on a product have a certain opinion about it. But customers take a new look at it. That’s a good thing. By using that fresh look, they can shed light on some parts of your business that require further improvement.
You don’t have to share every feedback customers give you. Conversations you have day by day are perfect for gathering client reviews. And you have plenty of ways to do it:
- Customer feedback surveys
- Social media
- On-site activity
- Email and contact forms
- Usability tests
What perks can you get through asking for feedback? Happy customers who can become your brand advocates, improved customer retention, and customer service, to name just a few.
4. Word of mouth is changed for the better
If you provide good customer service, you’re about to hear about it. The same goes for customer support which leaves much to be desired. People know they’re allowed to be spoiled these days and have inflated expectations.
92% of people believe suggestions from friends and family more than advertising. This is when everything is OK. But what if it’s NOT OK? An unhappy customer will tell 9 to 15 people about their experience.
Even a bit of negativity can spoil what you’re so passionate about. What can you do about it? Consider measuring customer satisfaction constantly: losing a single unhappy client is one thing, but watching 30 people go because of that negative word of mouth is a different story. This is what importance of customer support actually implies, you just have to stick with it.
Today, such forward-thinking companies as HelpCrunch keep close tabs on the overall client experience. To hold the satisfaction rate not lower than 95%, remember to check everything from Customer Satisfaction Score (CSAT) to the first response time.
5. The revenue level upgrades
Would you pay more to a company offering better customer service? So would I. 52% of clients claim they will make an additional purchase from a brand after a positive experience.
Moreover, users are ready to pay 17% more to do business with brands having a flawless reputation. Clearly, the importance of customer service is the top-of-mind priority today, which is the opposite of the past realia.
By the way, the analysis from Bain & Company proves brands that deliver superb customer service grow profits by 4-8% above their market. Just to think of it!
6. Customer lifetime value (CLV) is refined and moderated
Customer lifetime value demonstrates the total revenue you can get from one client. If it grows, a customer shops more frequently and spends more money on your business. Let’s see some numbers here: 76% of companies see CLV as an essential concept for them, whereas 81% of marketers agreed that keeping close tabs on CLV actually increases sales.
Improving customer service opens the potential for fine-tuning CLV. If a support team makes a client happy during their interaction, they’re more likely to come back for more. Besides, they can share their stories on social media, which builds better rapport with your customer base.
7. Customers sense better trust and loyalty (if you do your best)
Customers need to feel confident they buy from the right place and a trained support team can help you reach that. Skilled staff can put people at ease when they have second thoughts about a product.
Plus, excellent support agents’ knowledge can make clients stick to your company: it indicates that the business is run by seasoned professionals.
Being transparent is also related to the importance of good customer service. This should start with the very first interaction. Omit some pushy sales copies and fancy marketing campaigns just to grab clients’ attention (do that wisely, though).
A study has shown that nearly all customers (94% to be more precise) are more loyal to those companies that are transparent in everything they do. Add it to 73% of consumers who are even likely to pay extra if they see complete transparency. Still not convinced that great customer service and transparency CAN build trust?
Make your staff happy (and they will make your clients happy, too)
‘Everyone talks about building a relationship with your customer. I think you build one with your employees first‘ — Angela Ahrendts (Senior Vice President, Apple). At the end of the day, 87% of happy employees will do their best work.
Customer service reps are human beings. They also tend to be rude, angry, or just have a rough day. Imagine you experience a high churn rate just because one of your service reps doesn’t know chat etiquette and acts unprofessionally because of it.
If you want your staff to perform great (and treat your clients like a pro), you should motivate them, and make sure they feel respected. Teach them how to achieve positive customer relations and friendly communication.
Wrap it up
Customer support has already become a part of every success story. It should always be a part of the ‘great product = great service‘ equation.
Now that you know the answer to the question ‘Why is customer service important?’, start building a powerful support team. Provide it with the appropriate tools to hit it. Create an account (the trial is free for 14 days) with HelpCrunch to show your clients you care every day.