Why Customer Service is Important: 16 Data-Backed Facts to Know

For each new release, these brands have the opportunity to get in front of past customers again. From there, all it takes for one company to stand out is (a) a better product or (b) better service for their customers. At this point, you might be wondering, “At what point am I going to get something in return for all of this effort? ” It’s a fair question, and one of the simplest answers is the fact that, as a customer, you get what you pay for. While this is most commonly applied to products, it also applies to customer service.

why the customer service is important

Once they do, they’ll spend more money and your CLV metric will go up as well. In addition to internal company growth, customer service is also important in marketing. With any marketing team, the primary goal is to get in front of the right people at the right time. This is why ads for candy corn start appearing every year in October (at least in the U.S., that is) or signs for Boy Scout evergreen wreath fundraisers pop up at the end of November. By providing good customer service one year, businesses in each of these examples are able to see when customers are most interested in their products. Then, the following year, they can better time the launch of their product-specific advertising, so that they sell more than the previous year.

You business requires omnichannel solutions to reach customers

In order to make sure customers feel heard and respected, you need to take feedback from them using relevant surveys. No wonder CSAT and NPS surveys have become important tools why the customer service is important to gauge customer satisfaction and loyalty. Besides offering feature-rich products, you must offer phenomenal customer service to dwindle the odds of business failure.

Variable insurance and investment products are not insured by the FDIC or any government agency, are not deposits of or guaranteed by a financial institution and may lose value. Make sure you can communicate with almost any potential customer, partner, or client. According to Fundera, around 20% of businesses fail in their initial year and 50% fail by their fifth year. Ask your employees to keep you apprised of the most common complaints and compliments they receive and strive to do less of the former and more of the latter. Consider rewarding staffers for exceptional levels of service as well.

Higher Customer Lifetime Value with Quality Support

Customer service is the second most important factor (after price) when deciding whether or not to do business with a company, according to a study by Accenture. For decades, businesses in many industries have sought to reduce personnel costs by automating their processes to the greatest extent possible. This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data.

Other examples include the rebranding considerations around food companies Aunt Jemima and Uncle Ben’s. For each of these brands, feedback from the people they serve led to changes in how they present themselves and reevaluation of company biases. Since it was launched in 2008, Asana’s mission has been to “help humanity thrive by enabling the world’s teams to work together effortlessly”. Although they accomplish this partly through their software, they also reinforce it through their customer support. Within the app itself, a simple question mark button in the upper right corner makes it easy to find help when you get stuck.

Identify your customers and understand their needs

You cannot represent your brand without having a customer service department because you have no direct connection to your customers without your customer support agent. The bottom line is that your customer service personnel is critical in conveying to customers your desired brand image. They can help you in persuading customers of your strengths and advantages which in turn help in retaining customers.

why the customer service is important

Erika is Groove’s Customer Success Manager, committed to helping you find the right software solution for your business needs. She loves finding innovative ways for your support team to scale and grow, always putting the customer first. She also loves to run marathons and play softball in her spare time.

Customer Effort Score (CES)

In these situations, it helps to have a team of people with some mastery of persuasion so they can convince interested prospects that your product is right for them (if it truly is). On one side, they’ll be the voice of your company to your customers. That means they have to have a practiced grasp on how to reduce https://www.globalcloudteam.com/ complex concepts into highly digestible, easily understood terms. Discover the tools and techniques used by high-performing customer service organizations in our free, six-part video course. Carry a servant’s heart with you throughout your customer service endeavors, meaning you put your customers’ needs first.

  • We asked some of the world’s fastest-growing companies to find out.
  • AI-powered tools, such as a chatbot, can help support agents deliver faster responses.
  • If you’re interested in public perception, your reputation or the strength of your brand, you absolutely have to insure a high quality of customer service.
  • Customers of every industry are accustomed to the fast-paced digital revolution and expect customer service teams to be speedy in resolving their issues.

Active listening is a valuable talent that you may enhance by practicing with your coworkers and family on a regular basis. First and foremost, you should approach each discussion to learn something new and concentrate on the speaker. Ask clarifying questions once the customer has completed speaking to ensure you grasp what they’re saying. Finally, give a short recap of the chat to ensure that everyone is on the same page. In short, happy and satisfied customers lead to more growth, profit, and sustainability for your organization. Another way to gauge service levels is to invite customers to give you an honest assessment of the type of service you and your employees provide.

Happy customers will refer others.

It is an excellent tactic since greater retention leads to significantly higher profits. In fact, an increase in retention rates of just 5% can boost profits from 25% to 95%. Keep your focal point on your customer, then move through each department to align them behind customer service.

why the customer service is important

But once the pandemic hit, this timeline accelerated significantly, and it was no longer a commodity for businesses to communicate with customers via social media, live chat, or video calls. When humans have a memorable experience—good or bad—it’s natural to want to shout about it from the rooftops. But, of course, today’s rooftops are review websites and social media, with 55% of consumers sharing their purchases socially on Facebook, Twitter, Pinterest, and other social sites. Companies can support their customer service team with the resources, technology, and respect they need to get more happy customers. When customer service staff are equipped to do their jobs well, they are more comfortable and motivated, and your customers are too. Consider adopting proactive customer service if you’re looking for a cost-effective way to invest in your business.

You’re more likely to retain your customers for longer.

Whether it’s for a few items or the entirety of your weekly list, you also likely have a favorite store that you visit more frequently than others. As a customer, you know this means you can rely on the same products available. Instead, they know how to keep a cool head and a steady, guiding hand.

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