Never underestimate the power of good customer service. It’s what makes a consumer come back to you again and again. In some cases, they return even if the services or products you sell are mediocre. It’s the experience that makes all the difference. Similarly, companies that consistently treat their customers poorly face business limitations. Their growth stunts and eventually halts. Because an organization can only succeed if a customer keeps coming back and is content with the kind of service they receive.
American companies like Walmart and the United States Postal Service (USPS) are known for their unsatisfactory customer service. As a result, several former customers have found alternatives. American business magnate Warren Buffet once famously said, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” Therefore, businesses take customer service very seriously. Here are 6 reasons why it dramatically speeds growth.
Increase in Revenue
All important business decisions revolve around the generation of revenue. Therefore, organizations measure wins and losses based on how much money goes in minus how much goes out. The number of profits calculated is thus very important. Businesses value customer service because it is directly related to revenue. Many of us have an idea of what good customer services look like when we call Spectrum 1800 Number. Organizations that work on improving their customer support services report rapid increases in profits and revenue. Moreover, when customers receive poor quality service, they usually tell their friends, family, and acquaintances. Negative word of mouth can be detrimental to businesses. Especially those that have just started.
Better Brand Profiling
Exceptional customer service increases brand value among customers. When organizations continue to deliver great services to their customers, their brand profile rises. Word of mouth and customer reviews play an important role in developing brand image. For instance, customers today go through online customer reviews before visiting a restaurant, café, or hotel. A positive reputation even increases the chances of attracting employees, partnerships, and investors. Here are ten brands that have built a strong profile because of their strong customer services.
- Publix Supermarkets
- Trader Joe’s
- Cracker Barrel
Improvement in CLTV
CLTV is a business term that means customer lifetime value. This is used to refer to the amount of money a consumer could bring to the company over the period of their commitment. Thus, Customer Lifetime Value is directly related to revenue. Investopedia states that this ratio is calculated by adding the balances of all outstanding loans then dividing by the property’s current market value. For instance, a mortgaged property with $300,000 as the first balance, a 2nd mortgage balance of $100,000, and a value of $500,000 have a Customer Lifetime Value ratio of 80%.
Greater Competitive Edge
Organizations with good customer service have a competitive edge over their competitors. They have more brand loyalty, customer loyalty, higher CLTV, and greater revenue. All of this makes the business stand out and look better than most. According to a study, around 60% of customers choose not to continue transactions with a business after a single unfavorable service experience. Moreover, 67% of this can be avoided only if brands step in and settle the customer’s problem during their first interaction. Thus, a skilled customer support team can truly transform your business.
Efficient customer services mean extracting valuable feedback from consumers. Businesses do this in several ways.
Gather feedback from live chat sessions
Go through reviews and feedback on competitor’s platforms
Market positive customer comments and reviews
Analytics for consumer service performance
Employing negative reviews to display professionalism and ethics
Offer prizes and rewards in exchange for feedback
Designing a feedback space on the order confirmation page
Customer feedback is very important for business growth. To completely understand customers’ needs and wants, it’s important to communicate with them and evaluate and analyze their responses. As a result, this could help the organization with product development, a loyal customer base, and innovation.
Hope you like the post. Don’t forget to check out our other posts on business growth.