Reasons Why Customer Service Brings Success To Your Business
We’re going to tell you a story about customer service.
In 2013, a Twitter user complained to an airline about their lost luggage. Now, we’re talking about social media here, where information is easily picked up by thousands of other users in just a short time.
You’d expect the airline’s social media team to attend to this concern to put out the fire immediately, right?
Wrong. It took eight hours for their team to reply. What made it worse? The replies were not helpful. It left the customer confused and just plain unsatisfied with their service.
The thread of their conversation reached a big audience, which may have caused the airline a lot of potential customers.
Why are we telling this to you?
Because this is an example of bad customer service; of course, no company is perfect. There will be times when they will eventually make mistakes.
But in this case, the airline missed the opportunity to own up to its mistake, turn the situation in the right direction, and show the customer that they listen and care. This one failure of customer service didn’t only affect their reputation but also their revenue.
Today, customer service should be a priority of businesses – small or big. We’re here to tell you the importance of customer service in business and how it can bring you success.
Customer Service: What is it, and How Does it work?
Before the internet, customer service was a row of cubicles with customer service representatives answering phone calls of unhappy customers with scripted messages. Yes, this is an efficient way to communicate and solve customer issues. But is it enough? Yes? The internet says otherwise.
When the internet entered the scene, there was a sudden change of outlook on customer service. Consumers were able to reach companies through various channels. They can voice out their concerns on social media accounts, websites, emails, and many more.
A growing number of companies adapted to this new reality and decided to give attention to their customer service. Some even made it the center of their core values.
Nowadays, it takes more than just reciting a one-size-fits-all message to satisfy a customer’s needs. It’s about building a personal relationship.
Excellent customer service is about being empathetic and helping customers solve their problems to get the most out of your product or service.
This is why a business needs to have a highly-trained customer service team. Being highly trained doesn’t only mean that they have practiced standard customer service skills. They shouldn’t be robots.
They need to learn how to handle different customers properly—and build a personal connection with them. Customers always need to feel that they are appreciated and valued by your conversations with them.
In this way, they will choose to be loyal to you and even encourage other people to try your brand.
But how do you do that?
It starts with a customer service representative.
What is a Customer Service Representative? What roles do they have to perform?
Imagine them as the frontliners of your business. If a product has an issue, a customer representative will provide a solution. If customers are unhappy with a company’s service, they turn to a customer service representative to voice their negative experience.
Here are some samples of their typical responsibilities:
- First point of contact for customers’ concerns and inquiries
- Give possible resolutions to customers’ problems
- Provide proper information about the products or services
- Take note of customers’ feedback and suggestions
- Be an expert on how to handle complaints in a more efficient manner
These are not easy tasks. Remember, they interact with various people of different personalities. It’s challenging to maintain a friendly tone and calm voice when the person on the other line is shouting and throwing unnecessary remarks.
It’s challenging to be patient when the customer fails to understand what you’re trying to convey and keeps repeating the same questions. But this also shows why customer service should be taken seriously.
Companies have to invest more in things and ways that will make their customer service one step higher than their competitors.
Why Is Good Customer Service Important To A Business?
This is the big question. And we’re here to give you the right answers.
Remember the story that we mentioned earlier? You could be thinking, that’s alright. It’s just one mistake. People will eventually forget about it.
Well, not really.
According to a study conducted at Stanford University, people are more likely to remember negative experiences than positive ones.
The study furthermore shows that we take both information differently, wherein negative experiences require more thinking and are processed more thoroughly. This is why we tend to hold on to these negative events and think about them deeply.
In that case, let’s say the airline eventually realized its mistake and did something about the customer’s lost luggage to control the damage. But it’s already too late for that. They already failed to respond the first time promptly.
Customers will remember that negative experience with the airline for a long time and maybe decide not to use their services. Who knows? The customer could also influence other people not to consider that airline the next time they must travel.
That’s a huge problem that could have been prevented if only their customer service team had acted fast.
With the number of competitors increasing, you should know how to set your business apart. Why should they choose you? What can you offer that they can’t find with anyone else?
Maybe you’re still not convinced. How about more facts?
According to a study conducted by American Express in 2017, up to 17% of US consumers are willing to choose companies that provide excellent service.
But when it comes to the other side, more than half of American consumers have decided not to continue with a planned purchase after a bad customer service experience. And to add to that, 33% said that they would look for other companies when poor service happens to them.
And yet here we are again.
You could say to yourself, “then I’ll replace them with new customers. I can always do that. A lot more money on marketing and advertising to attract new customers. Yeah, that will do the trick.”
And we are going to repeat this, not really.
Have you heard of the term “Customer Retention”?
Loyalty. Customers who stick around to support your brand. Do these ring a bell to you?
If you’re going to continue with your plan to buy new customers, that will only end up with you spending five times more than the cost of retaining your customers.
Why not just take care of your customers? Plus, it’s just more challenging to sell your products or services to a new customer. It takes more effort to persuade someone to do business with you for the first time.
Existing customers already know the kind of experience you provide them. When customer satisfaction is high, it’s more likely for them to use your other products or services too.
The Power of Word-of-Mouth Advertising
This is the type of advertising that can’t be bought but also happens to be one of the most influential. There’s a higher possibility for people to listen to their friends or those close to them than any advertisement.
Now, imagine if that Twitter user had a positive experience with the airline. Then the tables would have surely turned. He could have shared the positive things about the airline with his friends, and they would remember that.
When it’s already their turn to fly, they will choose that airline because of the good things they heard from their friend. The cycle goes on. This is why a company must learn the importance of customer service.
These small talks about your brand could lead to a significant impact. It’s your responsibility to make it a positive one.
Long-term Success
Let’s go back to the start. The reason why a small business grows is because of people who support you. These people are your customers. More customers mean profit.
More profit means growth, and more growth means success. You can achieve success, but once you have it, the next step is to take care of it. And you do that by taking care of your customers.
Remember, it takes years to build a good reputation, but only a second? A minute? An hour? To ruin it. Make your customers happy, and the rewards will come.
Wrap-up
Whether big or small, businesses should focus on their customer service. If you want to survive the highly competitive business industry, you should always look at possible events.
It can be just a minor misunderstanding with a customer, but it’s important to listen to all of their needs. Don’t listen just for the sake of listening. Listen to them with attention to come up with the best advice or solution to their problems.
Listen to them with empathy. Build an honest relationship with them.
To do these things, your team must consist of customer service representatives who have the right tools and knowledge to handle situations with care.
They have to know how to provide a clear and coherent response. They have to learn how to deal with complex situations with poise. Having a customer service team that can do these things will have positive outcomes for your business.
We provided and explained the reasons why customer service is important to a business. Use these reasons as a motivation to improve your company’s growth. It’s your turn to witness success.
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References:
https://www.forbes.com/sites/quora/2018/12/18/how-important-is-customer-service-to-success-in-business/#6cb3e4d519c0
https://about.americanexpress.com/press-release/wellactually-americans-say-customer-service-better-ever
https://blog.hubspot.com/service/bad-customer-service
https://www.businessinsider.com/wal-mart-refuses-to-match-online-prices-2014-7
https://www.careerexplorer.com/careers/customer-service-representative/
https://www.entrepreneur.com/article/284799
https://www.helpscout.com/helpu/definition-of-customer-support/
