It’s often tempting to skimp on quality customer service in order to cut costs. Quality customer service often requires hiring extra employees to field questions, creating additional protocols for dealing with customer-related issues, and taking the time to study what, exactly, your customers need in order to have a good experience.
But you may want to think twice before cutting back on costs related to customer service. Poor customer service creates customer dissatisfaction, while quality customer service not only creates customer loyalty, it also increases your company’s reputation, which in turn increases the likelihood of you attracting even more customers.
Here are five reasons good customer service is essential for your company’s success:
1. Quality customer service builds loyalty.
Unless you own a monopoly of a product or service, you’re likely to have a lot of competition. There’s little to keep a customer coming back to you if another company offers the same product or service at a lower price. That is, unless you have impeccable customer service. If a customer has a particularly good experience with you, especially if you help him or her through a question or difficulty pertaining to a purchase, your customer is likely to remain loyal, even regardless of price.
2. It means fewer problems.
No matter what, problems are going to arise. Maybe a customer is dissatisfied with a product. Maybe a customer didn’t receive what was ordered. Maybe a customer has a question concerning how his or her purchase works. Whatever the issue, having solid customer service protocols set in place for any potential problems will help your employees navigate every difficulty without causing any additional complaints.
3. New customers are attracted to good customer service.
Want to attract new customers? By providing quality customer service, you’re creating a reputation for yourself as a company that treats its customers well. This will not only appeal to your current customer base, but also attract new customers as they hear through word of mouth, online reviews, social media, and other ways about your company’s great rapport.
4. For a lot of buyers, customer service is more important than price.
A large number of potential buyers are willing to pay a premium on a product in order to receive good customer service. Which means, you’re better off charging a little bit more in order to develop a solid customer service plan, rather than cutting costs and risking loss of revenue.
5. Intentional customer service encourages advocacy.
One of the best ways to build your customer base? Through the customers you already have! Which means, if a current customer has a great customer service experience and they share that with a friend, you’re likely to increase your number of buyers. But if a current customer has a poor customer service experience and they share that with a friend, well, you’re doing just the opposite. By being intentional with your customers, they’re much more likely to positively advocate on your behalf.