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Why customer service matters

To put things succinctly, customers have a choice. Never make the mistake of believing that your company is their sole option for whatever service or product you offer. If your customer service isn’t up to par, they can always go somewhere they feel appreciated. The end.

Just kidding.

While choice in the marketplace is a major factor as to why your customer service should be world-class, there are many benefits that good customer service can bring to your business. In this brief guide, we’ll go into six reasons why you should put customer service at the top of your priority list. We’ll also discuss why it’s deeply connected to your overall business results.

Sandwich Maker Looking At Customers
Clem Onojeghuo/Pexels

What is customer service, and why is it important?

Before we get into the various ways that customer service can benefit your company, you need a clear definition of customer service. You must also be able to answer the question “Why is customer service important?”

Essentially, it’s the assistance that you provide your customers at all points along the buying journey. It never ends. You need to show up ready to serve before, during, and after a customer or client has made a purchase.

As for why it’s important, read on.

Good customer service increases revenue

Every buying decision is based upon revenue. Money in versus money out dictates whether a company is deemed a success or failure. Bill Gates wrote that “content is king” back in 1996, but profitability is what actually rules the day. If you can’t become profitable and stay that way, you’re going to go out of business.

Customer service is deeply connected to business results. Specifically, it’s associated with revenue. According to Dimension Data and as quoted by Forbes, “84% of organizations working to improve customer service report an increase in revenue.”

You may find it hard to see the correlation between revenue and good customer service, but choose just a few customer-related metrics and then measure them. Track them alongside revenue, and you’ll see the link.

When customers are happy, your reputation increases

A good reputation can bring many other good things to your business. For example, people want to do business with those who have a good reputation. Investors want to invest. It’s easier to forge partnerships and hire the best talent. If your reputation has suffered, you can begin repairing it quickly by ensuring that your company provides first-rate customer service.

Wix Answers quotes New Voice Media’s statistics, which found that “After a positive customer experience, 69% would recommend the company to others.” Happy customers will tell others about their great experience, which elevates your image in the eyes of future customers.

Churn decreases with more customer care

The more you take care of your customers, the more likely they will come back again and again. In other words, the more you take care of the customers you have, the less you’ll need to search for new customers constantly. Remember that the cost of acquiring new customers is much higher than retaining them once they’ve made a purchase.

However, suppose your customer service is lousy. In that case, customers are likely to ditch you for a business that treats them like they care. If you don’t believe that, statistics from Oracle show that “89% of consumers begin doing business with a competitor following a poor customer experience.”

Ensure that you have excellent customer service. The number of customers who leave your business after buying will decrease significantly.

Employee happiness is linked to customer happiness

It may sound a bit weird or trite, but when your customers are happy, so are your employees. Remember that no matter what the economy is like, you need good people to work for you. That’s especially true in companies that are just starting up. When you’re struggling to launch, the happiness of your employees can play a more significant role in whether you sink or swim than their salaries.

According to Gallup, “Engaged employees achieve a 10% increase in customer ratings.”

In other words, when employees felt they had a higher purpose in pleasing customers, their happiness increased.

Brand awareness soars with positive customer experiences

The more awareness your brand enjoys among those most likely to purchase from you, the more likely your reputation and revenue will increase. Again, it all goes back to customers having a good experience and then telling others about it. As quoted by GrooveHQ, “55% of customers become a customer of a company because of their reputation for great customer service.”

Group Of Call Center Employees
Image used with permission by copyright holder

Marketing spend lessens with more customer advocates

The more people love your brand and the more they’re talking about you, the less you must spend on making people aware that you exist. Therefore, you have the opportunity to save time and money by making customers happy. Don’t waste a chance like that!

Finally, keep in mind that just four out of 100 businesses usually last more than 10 years. To put it another way, by the 10-year mark, 96% of companies fail. You can increase your chances out of the gate and for the long-term by ensuring that each customer you get is given only the very best in customer service.

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Will Blesch
Former Digital Trends Contributor
Will Blesch is a copywriter, content writer, and someone passionate about anything that lets him discover more about this…
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