Why Customer Service Is Crucial For Good Business
Nobody likes change because starting things from scratch is quite a task in itself. The same is the case with any business. consumers like to stick to their brands and service providers unless given a major reason to switch and customer service is a crucial component in this decision to switch from a brand or not. Even if customers have some kind of problem with the product or service provided by a company, it can be fixed through good customer service. So, it would be right to say that customer service is a crucial component that can fill many vacuums and loopholes within a company’s products and services, keeping the customers happy and allowing the revenue to grow over time.
On the other hand, bad customer service can not only hamper the reputation and make the consumer base nonexistent, but it also has the ability to make a company go bankrupt because no customers mean no revenue for the company. In the words of the famous businessman, Warren Buffet, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” This rule is applied to every consumer-based organization since customers are the backbone of these companies. This makes customer service the most crucial department since this is the frontline department of an organization that deals with customers directly. Customer service reps are considered the face of a company, so any wrong move on their behalf can be devastating.
Customers rely on a good customer service environment since this is the process that almost every customer has to go through at least once when doing business with an organization. The process of customer service begins when a user needs any kind of assistance regarding the product or service they are getting from a company and ends with the resolution of their query. This process looks rather simple; however, it’s much more complicated and time-consuming than it sounds. The reason behind this is that many departments are involved in the resolution of a query. For example, the billing department or technical assistance., The art of good customer service relies on how efficiently these departments collaborate with each other and how quickly they can provide a solution. That is why customer service is considered a team task that cannot be accomplished by a single person.
Customer service is very crucial for running a successful business since it is responsible for keeping a customer happy and satisfied with their service provider. If we take a common example of internet service providers, usually their customer service tackles issues including tech problems, billing issues, or things related to the service like slow speeds or downtimes. Any service provider that accurately handles these types of issues can keep their customer base intact and also allow new customers to join. One such example of this is Cox customer service which is doing this job quite well. Most of the online reviews about them sing praises. That’s the main reason why they have stood out in terms of ratings, which many new users consider before buying an internet connection.
How Customer Support Plays a Part in Good Business
We have already established that customer support is a key component in keeping a business up and running, but how it actually achieves that and what functions play a part in doing so is still a question. In this piece, we are going to find out how exactly customer service plays its part not only in sustaining but also in making a business grow.
Good Customer Service is a Free Marketing Tool
Companies spend billions of dollars in advertising their products in order to make people familiarize themselves with them and spread the word about the benefits of their products or services. However, in reality, an ad is an ad at the end of the day. People usually take opinions from existing users or see reviews online before deciding to buy a product or service. Especially in current times, due to the COVID pandemic, almost 60% of consumers look for reviews before making a decision to do business with a company. When good customer service is provided, happy customers spread positive words about a brand and this attracts new customers to join and enjoy the services. In a way, this creates an organic marketing cycle that doesn’t require any kind of investment, plus people believe a positive word of mouth more than any kind of advertisement. So, in simple terms, happy customers mean more customers and more customers mean more revenue for the company.
Customer Retention is Cheaper than Customer Acquisition
According to stats, it is 5 to 6 times more costly to bring in a new customer than to retain a current customer. This makes sense as a lot of factors are involved in attracting a new customer, which includes marketing costs, discounts, and promotions that are given to attract a new customer as well as many other small tidbits that go into acquiring a new customer. In contrast to this, customer, retention is quite cost-effective since it just requires good customer service. According to a report by the US Small Business Administration, 68% of customers leave because they are not satisfied with how they are treated by their company. In retrospect, this is a huge chunk of customers that can be easily retained by just providing satisfactory customer service.
Increases the Life of a Business
If we take a look, all big brands had humble beginnings like Microsoft, Coca Cola, and Apple. Now, these are considered giants of the corporate world. But how have they achieved this status? Through a loyal customer base Fundera reports that today, 20% of small businesses fail in their very first year, while 50% fail by their fifth year. This is because they don’t keep their customer base intact. Loyal consumers can do wonders for companies and the quickest way to achieve loyalty is by providing good customer service. This is proof that customer service is not only important but is one of the major things that keeps a business afloat. If we take an example of a company like Coca-Cola that has been in the business for more than 100 years, we see that it’s all because of a loyal consumer base that has stood the test of time and traveled through a century.
Good customer service can help a business in a lot of ways as we have already established. Factors including customer satisfaction, brand value, and the longevity of a business are directly related to customer service and these factors are crucial for the survival of a business and to be profitable. So, this directly infers that customer service is that factor through which businesses can thrive and grow making it a crucial component in good business practices.