When building a successful business, everything requires building trust and relationships with potential customers. Within this context, why consider customer service as your fundamental business need?
In short, happy customers lead to more satisfaction, positive word-of-mouth, and business growth which inevitably leads to long-term sustainability.
But, you already knew that, didn’t you?
Yes, service matters. So does product, tech, design, distribution, marketing, sales, manufacturing, and the myriad of other resources in your company.
By the end of this blog, you will be fully convinced why customer service is important and the exact reasons to prioritize it.
Let’s discuss the reasons how business revenue and the business relationship are impacted by customer support.
Customer support service is how you help your customers. It could be the seamless process by which an outbound specialist resolves the issue:
Depending on the industry (healthcare, fitness, automotive, and finance), customer support can range from call centers (phone support) to ticket-based helpdesks and sometimes email support.
Customer support service indirectly impact the revenue. Revenue dictates every business decision in medium to large organizations. Companies measure success or failure based on good profit margins regardless of whether it happens on day 101.
The most important reason to understand why customer service is an essential component of any business is that it correlates to revenue: 84% of organizations pay utmost attention to improving customer service.
A positive reputation leads to better scalability options. Happy customers become repeat customers and contribute immensely to business growth. Reputation is a key indicator to attract customers, investors, partnerships, and employees. Therefore, the truth is, a business cannot prosper and flourish without excellent customer service. After a positive customer experience, 69% would recommend the company to others which ultimately goes in the best interest of the growing business.
Customer retention is yet another important aspect of the business. To simply put, customer retention should be viewed as the blueprint to propel towards business success. When aiming to build a solid foundation for attracting customers and retaining them, customer service comes into play.
Want to know why customer service is so crucial for retention?
Here is why.
75% of people would return to a company with excellent service.
Churn measures the number of customers who leave a business after purchasing.
It serves as an accurate insight for assessing the measurement of satisfaction. Customers churn when they’re unhappy, poorly facilitated, and business doesn’t satisfy what was promised.
When it comes to churning, the importance of customer service is clear: 89% of consumers begin doing business with a competitor following a poor customer experience.
CLTV (customer lifetime value) is one more metric that is super relevant to customer service. It significantly and substantially reveals the amount of money a customer potentially brings to a company when a business facilitates. CLTV correlates directly with revenue, and you can only achieve it with excellent customer service.
How does it relate to customer service, though?
These data points reveal a more specific breakdown. For example, highly engaged customers buy 90% more frequently, spend 60% more per transaction, and have three times the annual value compared to other customers.