It essential to know the definition of Customer Services to understand its importance which is “the provision of personalised attention to a customer before, during and after a purchase” (Andrews). Work gets done faster, productivity goes up, and both employee and customer sentiment thrive in a more collaborative environment. Product listens to customer support reps. Teammates work together with kindness, compassion, and, above all, respect. Customer Retention—and Increased Revenue Satisfied customers are … Thus, that team has the responsibility of representing your brand to them. Many who are employed show very little interest in … Good employees are in demand in any economy. By providing stellar customer service, you can differentiate your company to customers. It represents the total revenue you can expect from a single customer account. This is because repeat customers are more likely to spend more with your brand -- 67% more, to be exact -- which then results in your business having to spend less on operating costs. If anything, once you enter the business word, it’s value compounds. 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. It represents the total revenue you can expect from a single customer account. Without your customer service team, you have no means of direct communication. Investing in customer service helps activate your flywheel because loyal customers will help you acquire new customers, free of charge, by convincing prospects to interact with your brand. Therefore, if you want your customers to do their best work, they should feel respected and appreciated. What matters is how your customer perceives it. If you're running a business, customer lifetime value (CLV) is a pretty important metric. How important is customer service for a business? Aside from that, below are a few more reasons why you should invest in your customer service team. Providing excellent, and memorable, client support is important for client retention. You’ll have happier customers, more streamlined processes, and easily hit your KPIs. Positive customer experiences play a huge role in brand awareness, as they often lead to word of mouth advertising. It is important for businesses to be aware of this figure in order to assess the importance of customer relationships and how they can implement effective customer service … In this sense, the higher a customer's lifetime value -- the total revenue a company can expect a single customer to generate over the course of their relationship with that company -- the higher the profit for your company. Engineers help the sales team. For scaling start-ups, providing an excellent customer service experience is the surest way to keep up momentum and minimize loses. If you can prove its worth, and get your team on board to harness its power, its success impacts every level of your organization. Instead, it's about maintaining their professionalism and integrity, not wanting to get fired before quitting, being empathetic to customers, but getting recognition from them in the end. They can help influence customers and convince them of your strengths over competitors. In today’s society, these attributes are not being conveyed by employees. Helps to retain all potential customers. It's important to note that 55% of employees who strongly disagree about being happy with their jobs will still work especially hard for customers. It attracts customers, investors, partnerships, and employees. According to our research team, the customer acquisition cost (CAC) -- how much it costs to acquire a new customer -- is more for a company that doesn't invest a small percentage of its budget in customer service. INTRODUCTION. 75% of people would return to a company with excellent service. Steve Strauss. Free and premium plans, Customer service software. Customer Success Manager @Groove. Ultimately, investing in customer service can decrease your churn rate, which decreases the amount you must spend on acquiring new customers and decreases the overall CAC. In a sea of competitors and plenty of options to choose from, customer servi… Her background spans running customer support and experience at startups to running script changes on live TV shows. Without exceptional support, your clients will not return. Everything we've learned (and are still learning) about growing a business. Revenue dictates every business decision. Your customer service team, however, is your connection to your customers. Customer service experience goes beyond call centers and emails. And anything involving the customer, involves the customer service team.). Before putting money into a marketing campaign, look at what’s already being done in your inbox and maximize its value as much as possible. Customer service is one of the most under-valued assets in business. Melissa Rosen When building a successful business, everything screams for attention. 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 Read the following list to understand how essential customer service is to improving your business and relationships with customers. 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. Surely, there’s a reason the phrase “the customer is always right” has become such a cliché. Loyalty is rooted in trust, and customers can trust real-life humans more than the ideas and values of a brand. The importance of customer service. Start your free trial of Groove to get access to simple reports and actionable customer insights that you can share with your entire team. 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. When everyone at a company has the same end-goal, the entire workflow becomes streamlined. For more information, read this next post about how to maintain a positive attitude working in customer service. They can use your. Brand awareness soars with positive customer experiences, 9. But, proactive customer service isn't just used for customer delight. It is important to keep the customer pipeline active in order to help the business grow. 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. Yes, service matters. I don’t need to convince you why customer service is important. Provide a positive experience for existing customers and watch them rave about your brand. The importance of customer service is that when you treat your customers fairly and with respect, they return it by appreciating your gesture and becoming loyal to your brand. Stop asking yourself “why is customer service important?” and make sure that your customers know how important they are to you. Groove can help you leverage support insights to improve customer retention, growth, and revenue—without adding complexity or losing your personal touch. The importance of customer service is that it can make or break your business. The importance of customer service is identified as very intensive in service industry when compared to other industries. CLTV (customer lifetime value) reveals the amount of money a customer potentially brings to a company over the course of their engagement. additional products with less friction. Having a group of customers that are happy and satisfied with your products is like having top rating for your business. So does product, tech, design, distribution, marketing, sales, manufacturing… and the myriad of other resources in your company. Customer retention carves the clearest path to business success. Customers aren’t the only ones who have options. One of the perks of having a proper customer service is that you will be able to retain your existing customers. Due to this, your customer service team is essential in relaying to customers what you want your brand image to be. Customer service is an integral part to growing a business and ensuring its success. Customer advocacy is a very efficien… It provides a fairly cut-and-dry measurement of satisfaction. Their response can give you a lot of insights into improving your products, marketing, goals, and employee training. Free and premium plans, Sales CRM software. Customer service is importance to your business because it's retains customers and extracts more value from them. The coolest brands on the blocks — meaning, those with the most and best brand awareness — get all the fame and fortune. CLTV improves with better customer service, 6. In short, happy customers lead to more money, growth, and sustainability. Reasons for failure range from lack of funds, to misunderstanding of market value, to inability to sustainably scale. Here is how customer service can positively effect your business: Gallup found that highly engaged employees achieve a 10% increase in customer ratings. For consumers overwhelmed with options, a recommendation from a friend often tips the scales. Satisfied customers resolve each of these issues: Mitigate the risks of building a successful business with customer care. However, it might seem like a waste to invest money in your customer service team. Their ability to communicate directly with customers can totally revolutionize your company and grow your customer base. Viral social media campaigns and paid ads have their place, but nothing beats the oldest trick in the book. The importance of customer loyalty impacts almost every metric important to running a business. A highly engaged customer refers to one who reads your emails, follows you on social media, and interacts with customer support (whether through individual correspondence or more general blog posts and knowledge base articles). Investing in your customer service offer is an excellent way to improve customer lifetime value. New customers (as we’ll talk about below) tend to cost more to acquire, and don’t spend as much money as loyal, repeat customers. 55% of customers become a customer of a company because of their reputation for great customer service. 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. 55% of customers become a customer of a company because of their reputation for great customer service. hbspt.cta._relativeUrls=true;hbspt.cta.load(53, '48408caf-9dab-4f51-81c5-1be472518198', {}); Originally published Dec 20, 2019 1:29:00 PM, updated February 28 2020, 10 Undeniable Reasons Customer Service Is Important to Your Business. Churn decreases with more customer care, 5. Anyone who is serious about making considerable headway in business needs to understand why customer service is so important. Understanding why is customer service important is the first step in delivering exceptional service. When you build a brand awareness strategy around customer loyalty, you’ll see authentic and sustainable growth. Save money and time with every loyal customer. Measure your progress, and enjoy the benefits.Satisfied customers will recommend you to their network. Your unique product or service may reel them in, but customer service keeps them. You may have an idea of what your brand represents. Positive reputation leads to higher growth. Happy customers build a better reputation, 3. Business owners take a huge risk when founding a company. Let’s dive into the 11 reasons why customer service is important and how to correlate it with business results…. But do we know exactly why it’s important? By valuing customers, and tirelessly working to serve them, you simultaneously create a company culture of helpfulness. CX Lead & Content Creator @Groove. CLTV correlates directly with revenue. The best way to sustainably grow a company is through word-of-mouth. It's a chain reaction. However, your customers can't get into your head. Growing this value means that your customers are shopping more frequently and/or spending more money at your business. for USA TODAY. Not only do they purchase more, but they also bring in new business. Learn how to leverage great customer service experiences to drive business growth. Services have flaws. By putting a number to the importance of customer satisfaction, you can have more meaningful conversations with your boss and company about investing in your team.Commit the entire team to improving customer satisfaction day in and day out.