Customer service has been found to increase revenue, customer lifetime value, and company performance. Read our article to learn more about this customer-facing benefit, its impact on your business, and how you can use it to grow your revenue. You don’t need to have thousands of customers to benefit from customer service. There are many benefits you can reap from customer service even if you only have a few hundred customers.
Let’s take an example of a telecommunication company called Spectrum, which is one of the largest internet cable TV and home phone service provider in the US. Previously in the year 2018, they faced backlash and started losing their customer. However, due to Spectrum customer service, they gain their position in the market and now they’re one of the largest providers again. In 2020, they received the second-best customer service provider according to the customer service index. This is the outcome of good customer service.
Having a strong customer service team in place will benefit any business. This type of team building will foster long-term growth. Creating better relationships with suppliers is important for creating a robust business. We will discuss the benefits of customer service in detail in this article.
When you provide your customers with a good customer service experience, they will share this experience around. In this era of digital marketing, people believe in what they see on online platforms.
If your customer is not happy and leaves a bad review, you can lose your potential new customers. However, if you provide quality customer support, your customers will spread the word and you will gain new customers.
You don’t have to invest money to attract more customers if your existing customers will spread out the positive words for your brand. This results in the organic growth of your business.
Better Basis for Sales
Everything in business is interlinked with another, nothing stands in isolation. Just like a recipe, that is formulated by adding different ingredients, business is also a recipe that is formed by adding a different kind of ingredients.
Though customer service is not directly linked with sales, it is somehow very important for sales generation. If you provide quality customer service, and your customers are satisfied. You will have a great number of loyal customers, which will attract more buyers and your Market reach will increase. So that means good customer service will ensure better sales.
Long Term Growth
There are different kinds of business growth, and you plan according to your growth goals. You can find many examples around, where you can see some businesses who drive to the heights of success but they cannot sustain it.
It is important to plan long-term growth success, and for that, you need to invest in a good customer service department. Just like we give an example earlier of a telecommunication company called Spectrum, that regained its position after it improved the customer service department. This is the long-term effect of good customer service in the growth of a business.
Better Customer Relations
The customers are the pillars for the success of any business. If you are unable to form a relationship with your customers, you will never have a strong customer base of loyal customers. Any successful company goes the extra mile to build a good relationship with their customers, so their customers would trust them.
You can take the example of Apple Inc, people who use Apple products do not switch to any other manufacturer, this is what you call a strong customer base. Whenever a customer faces any kind of issue with your service, one to guide him and help him in that situation, if you are unable to build a relationship of trust with your customer you will lose them. However, if you offer strong customer support your customers will be loyal to your products.
If you are an existing customer who plays the role of word-of-mouth and they spread good words about your service, it will attract more customers. We are all aware of online reviews, because whenever we have to buy something the first thing we do is research about it on Google, read the reviews, and make a decision based on it.
If your customer leaves a positive review, you will have more new customers, and that will generate more revenue for your business.
Though there are many important factors in the growth of a business. One of the major factors that would ensure the success of a business, is customer service. All the business experts around the world, stress the importance of customer service because it can make or break a company. If you want to be successful in any area, you need to understand that, the reason why you can extend in any field is by having sales which means, your customer adds value to your business.