When you look at a successful business, such as Casumo.com, it can be challenging to pinpoint exactly what they’re getting right and even harder to emulate that success. However, there’s one guaranteed aspect that’s got them where they are now, customer service.
We all know that customer service is a positive aspect of a business. Plus, the idea that it should be good isn’t that hard to grasp. However, if you don’t dig deeper to find out how customer service drives success, it can be challenging to stay focused. Consequently, the appropriate level of investment in this essential business attribute might fall short.
We’ve tackled that issue by examining what excellent customer service does for a business and how that can be achieved.
Customer Retention
One of the biggest wake-up calls in understanding the value of customer service is appreciating customer retention. When you first establish your business, your focus will be on attracting new prospects. However, further down the line, you’ll need to shift that attitude to take care of the people that have already found you.
A business model that relies only on new customers doesn’t hold much promise for longevity. Customer service means existing clients will have a good experience that they’re happy to repeat the next time they need or want your product or service. This loop creates a kind of stability that leads to success.
From your website, email greetings and how you deal with issues, providing a smooth experience will keep customers coming back. On top of that, they’re excellent ways to demonstrate your brand’s values and personality.
Revenue Retention
An inevitable next step after service that leads to customer retention is revenue retention. If you can deliver the kind of experience that keeps 30% of your customers coming back for more, then you can build that into your business model.
Projections for income will change dramatically if you can count on repeat purchases. However, top-notch service doesn’t only deliver repeat customers. It also provides you with loyal and trusting clients. Studies show that 67% of people are likely to pay more for better service.
It could mean that you can upsell and cross-sell more efficiently. You might see larger purchases over time or find more wiggle room for increasing your margins. Whichever way you look at it, better service means a better figure on your bottom line.
Referrals
Think of happy customers as gifts that keep on giving. Not only will they come back to repeat a purchase and come back and spend more money, but they’ll also likely send more business your way. It can work in a number of ways, but the end result is more potential leads lining up at the top of the funnel.
Happy customers might mention their purchase to family and friends because they were so thrilled with how it was handled. Alternatively, if you deliver something extra, like an unboxing experience, people are more likely to share it on social platforms.
Finally, superb service often leads to glowing reviews. Whether it’s through Google, a website testimonial or an external blog, positive reviews will win over other prospective customers.
More for Your Money
If your budget is tight, you might be cutting corners on customer service. It could make sense in the short term but won’t do you any favours in the long term. Besides all of the above reasons, excellent customer service is an investment for your company because it impacts other costs.
Clients bring you money, but to get those leads, you’ll need to spend some money. Understanding the customer acquisition cost (CAC) for your business is crucial to your success. Once you look into those figures, you’ll reveal the true importance of customer service to your budget.
Companies that invest at least a small percentage in service have a lower CAC. Plus, efficient service means less time spent on firefighting issues and more time available for the next customer.
Learn and Grow
Whichever industry you're in, you’ll need to adjust to market changes, innovations and different consumer appetites. What worked for you once can’t be relied on to deliver in the same way forever. There are three options available to you, stagnate, see trends and adjust or stay ahead of the curve.
The last two options are much more likely to lead to success. A business that supplies quality customer service will be in a better position to adopt either of those approaches. Support agents, reviews and other forms of feedback that come with helping customers can teach you so much.
In addition to identifying what you’re doing right and where you're going wrong, you can check for patterns in needs, requests and what’s valued most. Plus, you’ll get accurate insights into how your brand is perceived, giving you enough time to adjust and respond as needed.
