Customer service is the detail than can make the difference between your company and your competitors, and this is where many small businesses fail; ignoring the customers' needs means cutting short the potential life of a business. According to Boston-based global management consulting firm Bain and Co., a 5% increase in customer retention can increase a company’s profitability by 75%.
It looks simple, but providing excellent customer service can be a tough job, especially when you are irritated by customers' complaints or requests and you want to throw everything away. But before you give up, rest for a minute, carefully analyze what you have done, and find out if, where, and when you have made a mistake.
Here's how proper customer service can help improve your business, because, as Aesop said, "No act of kindness, no matter how small, is ever wasted."
It impacts your whole business
How many times have you said "I'll never go back to that shop!" after receiving bad customer service from a sales assistant? You might be able to easily replace your now ex-favorite shop with another one; it's no problem for you. However, if you are a company, this turns into a problem, as you need customers in order to sell your products or services. In fact, rude behavior toward a customer can reflect upon the whole business, as people remember good service as much as bad. They might even remember the bad service better! This is because people aren't just buying a product—they are interacting with a company or one of its representatives. A bad customer service experience can make you lose customers if you act unprofessionally.
It generates an unforgettable human experience
People buy experiences, not just products. In a world where human interaction progressively seems to be overcome by computers and technology, people still look for some kind of human interaction. But what is an experience? In 1985, Coca Cola tried to replace its most famous drink with a new Coke recipe, but soon after the launch of the new product, the company had to take a step back. Protests were raised by thousands of Americans who complained about the new product. The reason was not the fact that the old Coke was tastier than the new one—instead, they associated it with family memories, good times eating a pizza or watching TV with friends, and generally just happy moments in their daily lives. As Andy Warhol put it, "What’s great about this country is that America started the tradition where the richest consumers buy essentially the same things as the poorest. You can be watching TV and see Coca Cola, and you know that the president drinks Coca Cola, Liz Taylor drinks Coca Cola, and just think, you can drink Coca Cola, too."
That is to say, people expect to receive something that goes beyond the mere service or product itself.
It's very effective advertising
From a purely marketing point of view, having good customer service is a strategic way to advertise your brand and build brand awareness among the customers. This is also because word-of-mouth still works pretty well; if people hear that you have terrific customer service, they might call you instead of calling one of your competitors. It also shows your problem-solving skills and ability to handle customers' requests.
It enhances your Customer Lifetime Value
It's much easier to retain an old customer than it is to acquire a new one, and customer service can contribute to this by increasing your Customer Lifetime Value (CLV). According to a study by InfoQuest, "Totally Satisfied customers have a repurchase rate that is 3 to 10 times higher than that of Somewhat Satisfied customers." In other words, excellent customer service is a point of differentiation between your company and all the other companies out there—it's a way to show customers your personality and make them remember you. It basically means that they will buy from you again and again. Once, a man apparently bought an iPad, but he had to send it back because his wife didn't want it. He then wrote a Post-It saying, "My wife said no" and returned it to Apple. They replied by sending another Post-It: "Apple said yes." Isn't this a good example of customer care? If he ever needs a phone, it's likely that this man will purchase again from Apple instead of buying from any other company.
This is the reason why at Athena Parthenos, we treat our customers as kings, making sure they have the most enjoyable and professional experience.
If you are interested in any of our services for companies and organizations, please come take a look.
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Written by Marcella Sartore, Communication & Marketing Assistant @ Athena Parthenos