Customers are the most important stakeholders in every business, and serving them is the most important objective of any company. As a result, there is no denying the significance of excellent customer service. And if a firm does not care about improving its customer service, it will have a hard time retaining customers in the long run.
Forbes conducted an interview with over 1,000 customers in 2020 Achieving Customer Amazement Study, asking about their propensity to transfer brands or organizations for superior customer service. The answer was a resounding “yes” to switching, with 96 percent of clients saying they would leave you if you provided poor service.
As a result, it goes without saying that customer service has a significant impact on a firm. And it is for this reason that businesses of all sizes strive to enhance and promote their customer service in order to expand and generate income.
On the client-side, they require excellent customer service in order to communicate with the firm. If, for example, you have a problem with your Internet or cable connection and Spectrum is your provider, the first thing that comes to mind is the ISP’s customer service. You may call Spectrum Customer Service for help not only in picking plans and learning about rates and availability but also in resolving any technical difficulties that may emerge in the process.
As a result, Spectrum is ranked above-average in customer service, which has a significant influence on its overall brand score in the ISP industry.
Continue reading to understand more about the impact of customer service on a business as we go over some key points.
1. A Good Customer Service is a Competitive Advantage
Customer service and the company’s image are tightly related. In order to provide the best possible customer experience, businesses must maintain alignment between the two groups. A pleasant customer experience is essential for business success and maybe your most important competitive edge. According to the Dimension Data survey, 84 percent of businesses that try to enhance their customer experience see an increase in revenue.
When you consider it from the standpoint of the client, it makes sense. Customers will only return to businesses that value them. While a product or service may have countless competitors on the market, exceptional customer service may be unique in and of itself, offering a competitive edge to the firm that provides it.
2. Customer Service Will Determine the Customer Satisfaction
There’s a considerable possibility your client will return if your customer service is excellent and he leaves happy and satisfied with your goods or services. According to the 2017 ‘State of Global Customer Service Report,’ 96 percent of customers worldwide believe customer service is an important factor in their choice to stay with a company.
This indicates that almost every consumer is seeking something other than your goods or service. You must provide your customers with a remarkable experience in order for them to return. Consider this: would you want to deal with a company that does not appear to care about providing you with excellent service? The same may be said for your customers.
3. Customer Service Can Help Market Your Business
Excellent customer service enhances your company’s marketing efforts in a variety of ways.
1. Assist in the retention of customers
The marketing department assists in the acquisition of new customers, while the customer service department assists in the retention of current customers. Existing clients must be retained since research reveals that maintaining existing customers is considerably more feasible than acquiring new ones. As a result, you must provide outstanding service to keep your customers loyal.
2. Generate New Prospects
Excellent customer service not only helps retain existing clients but may also help attract new ones. This may be done in a number of different ways.
To begin with, if your present customers are happy with your business, they will tell their friends and family about it. This will help you expand your business by establishing a network of loyal customers and new prospects.
Second, customer service is for anybody who is interested in your company and needs assistance, not only current customers. If a potential consumer is well treated and pleased by your great service, you can turn him into a client.
4. Customer Service Will Affect the Revenue Generation
There is a direct relationship between customer experience and a company’s level of revenue generation. According to research and statistics, businesses that focus on providing a positive customer experience generate more revenue than those that do not. As a result, it is a company’s responsibility to value customer satisfaction as part of its strategy to increase sales and market dominance.
According to one study, 59 percent of companies with a CEO involved in customer experience report higher revenue growth, while only 40 percent of companies without a customer-focused CEO report growth. This emphasizes the significance of higher-level involvement in treating Customer Service as a serious factor for growth.
To sum it all up,
Customer service is the backbone of a business. It can act as a competitive advantage, is a determinant of customer satisfaction, can help market the business, and eventually impacts revenue generation. All of these points are addressed in this article, and they are backed up by statistics and data to help you understand the significance of strong customer service.