It provides a fairly cut-and-dry measurement of satisfaction. Your customer service team can answer a lot of these probing questions for you. However, it might seem like a waste to invest money in your customer service team. In fact, according to our research, 77% of customers have shared positive brand experiences with others. CLTV improves with better customer service, 6. Offering amazing customer service is important if you want to retain customers and grow your business. One of the perks of having a proper customer service is that you will be able to retain your existing customers. According to Fundera, 20% of small businesses fail in their first year, and 50% fail by their fifth year. So does product, tech, design, distribution, marketing, sales, manufacturing… and the myriad of other resources in your company. They can use your CRM or ticketing system to look up customers who have had this problem in the past, reach out to them via the service ticket, and introduce the new feature as well as its benefits. Learn how to leverage great customer service experiences to drive business growth. The question isn’t really, “why is customer service important?” It’s moreso, “how do I show that customer service is important?”. Beyond product satisfaction or value, customer satisfaction reigns supreme in today’s landscape. Customers are influenced by even a single experience; one positive experience could be the deciding factor for them to stick to a brand, whereas one negative one could send them running to a competitor. For consumers overwhelmed with options, a recommendation from a friend often tips the scales. When building a successful business, everything screams for attention. It doesn't matter how you perceive your brand. Of course, your product team could use some financial assistance and marketing -- especially advertising -- could always use a little padding. Marketing of a business was initially based on brand promotion and improving the brand quality and the services. Engineers help the sales team. Start your free trial of Groove to get access to simple reports and actionable customer insights that you can share with your entire team. Let them know how much each customer depends on their work. In fact, 60% of customers stop doing business with a brand after one poor service experience. Her background spans running customer support and experience at startups to running script changes on live TV shows. When you master not just attracting customers, but retaining them, it sets a solid foundation for your entire organization. You should consider it especially while planning your marketing and positioning campaigns. Create a mission-driven company where employees return everyday to find new ways to please the customer. Your customers can be your best -- and cheapest -- form of word-of-mouth advertising, as long as you give them a reason to do so. Your customer service team, however, is your connection to your customers. Customers who receive poor service may not come back, and you may never learn why. It attracts customers, investors, partnerships, and employees. Many who are employed show very little interest in … After sales service plays an important role in customer satisfaction and customer retention. Maybe you’re up for a promotion and want to show your boss exactly why customer service is important to their bottom line. No matter what industry you're in, you want your business to stand out. Rather than having to spend time and money on constantly surveying customers, you can have your customer service employees simply ask these questions while interacting with customers. Q: I was in a high-end specialty store recently and I could not believe how poorly I was treated. So, by interacting with your customer service team, those customers can build, hopefully, life-long relationships with your business. These data points reveal a more specific breakdown: Highly engaged customers buy 90% more frequently, spend 60% more per transaction, and have 3 times the annual value compared to other customers. For example, if you create a new feature that solves a common problem with your product, your customer service team can refer it to your customers. No employee is going to enjoy coming into work if they feel under-appreciated compared to employees on other teams. Positive customer experiences play a huge role in brand awareness, as they often lead to word of mouth advertising. Satisfied customers resolve each of these issues: Mitigate the risks of building a successful business with customer care. An increase in customer retention of merely 5% can equate to an increase in profit of 25%. Customer service is important because it can help you to: Increase customer loyalty; Increase the amount of money each customer spends with your business; Increase how often a customer buys from you; Generate positive word-of-mouth about your business In an era where companies are learning to prioritize customer service, any company that doesn't do so will crash and burn. The importance of customer loyalty impacts almost every metric important to running a business. However, your customers can't get into your head. Customer marketing involves turning existing customers into advocates. It's a chain reaction. Valued customer service unites goals and processes, 11. Business longevity relies on satisfied customers, 84% of organizations working to improve customer service report an increase in revenue, Better customer service begins with better customer service. The importance of customer experience should never be neglected. The intangible feeling of having a purpose motivates people far longer than free food ever could. Current customers can refer business and prospects can become customers. HubSpot uses the information you provide to us to contact you about our relevant content, products, and services. Company culture strengthens with improved customer sentiment, 8. Customers churn when they’re unhappy. Melissa is a CX Lead and content creator at Groove. What’s more, customer experience provides the personalization that marketers crave. After all, 87% of employees who are happy with their jobs are willing to work extremely hard for their business's customers. Customer retention carves the clearest path to business success. By providing top-notch customer service, businesses recoup customer acquisition costs and cultivate a loyal following that refers customers, serves as case studies, and provides testimonials and reviews. Written by Swetha Amaresan In fact, 56% of people would recommend a company with excellent service to family and friends. for USA TODAY. Finding a new client every time you wish to sell your product can be an expensive process. But, proactive customer service isn't just used for customer delight. Because your customers are your business. Profitability is king, regardless of whether it happens on day one or day 1001. Rather than push them right into the enemy’s arms, focus on excellent customer service to prevent customers from churning. Rather than waiting for customers to report issues, this approach reaches out to them before they even know they exist. Give your team a chance to be a part of something larger than themselves. And, this can sometimes be more effective than a sales pitch because customers feel like the service rep truly understands their issue after troubleshooting their problem. A good customer service is important if you want to show your boss why! 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