What do all businesses have in common? No matter how big they are, there is always room to grow.
But at a certain level, your growth may become stagnant. And this leads CEOs and managers to ask a simple question: “how can I take my business to the next level?”
Believe it or not, great customer service is the most important way to grow your business. Unfortunately, many companies underestimate how good customer service can take things to the next level.
Why should you focus more on improving your customer service? Keep reading to discover the answer!
Good Customer Service Saves Money
If you’re wondering why your business needs to focus more on customer service, let’s cut to the chase. Better customer service will actually help your business save money!
Right now, chances are that you have a sizable marketing budget devoted to bringing in new customers. But the simple fact is that it is far easier to retain your existing customers through superior service rather than bring in new customers through aggressive marketing. And good Business Process Outsourcing can really help improve your customer retention.
On top of being easier to retain customers, it is also more profitable. As our guide will later explain in more detail, loyal customers are likely to spend more money. Therefore, a business focusing more on customer retention via better customer service can expect to see a serious jump in its annual profits.
Building a Solid Brand
What do you think best represents the strength of your business? For most companies, the power of the business is based on the strength of the overall company brand.
And it’s an open secret that your brand extends beyond solid products, growing sales, and snazzy marketing. Customers know which brands are good because they hear friends, family, and colleagues saying good things about that business.
With great customer service, you are doing more than making individual customers happy. You are also helping to control the conversations that other people are having about your business and business processes.
And the best part is that you won’t be doing this alone. And that’s because solid customer service creates a dedicated group of brand ambassadors.
Creating Brand Ambassadors
Modern marketing is something of a paradox. If you don’t budget enough towards marketing, the average consumer may not know much about your business or its products and services. But if you ask the average consumer what they do before making a purchase, most of them will say they conducted online research to see what people are saying about this company and the business solutions it has to offer.
For example, someone shopping on Amazon or Etsy is far likelier to pay attention to customer reviews than product descriptions. And someone on the fence about a major purchase is far more likely to listen to what their friends have to say rather than a slick corporate advertisement.
With great customer service, you create a core of happy customers that become your brand ambassadors. These are the customers that will leave glowing reviews, share your posts on social media, and generally talk your business up to anyone who will listen.
It takes time and effort to make your customer service shine. But once you have excellent service, these brand ambassadors will do much of your marketing for you!
Happy Customers Adds Up to Greater Profits
Generally speaking, greater customer satisfaction will lead to greater profits for your company. And this is due to two primary factors.
The first factor is one that we already touched on: loyal customers prefer to remain with the companies that they trust. So instead of chasing down many new customers, you can rely on this core of loyal consumers to generate regular profits.
And the second factor is even better: loyal customers are likelier to spend more money on the brands they trust. For the average consumer, buying from a new business represents a risk: they can’t help but wonder if the product will work as described, if the shipping will be fast, and so on.
But once a company really delivers on their promises, they no longer come across as a major risk. The customer can then buy again (and even buy more) safe knowing that your business is reliable.
Being reliable, though, means having a trustworthy reputation. Focusing on customer service will help create that reputation and keep customers coming back for more!
Reduced Employee Turnover
At first, you may not think that employee turnover is related to customer service. In reality, though, these concepts are very much intertwined.
Why is this? In short, your employees are going to pay very close attention to how your company deals with customers. If you don’t seem to value those customers, employees will wonder if you really appreciate their services and start polishing up their resumes.
But this works in reverse as well. By really focusing on customer service, you openly show the world your commitment to keeping customers happy. Not only will this reassure your employees, but they will want to stick around and be part of an organization devoted to helping others achieve happiness.
Improved Customer Lifetime Value
So far, we have focused on the value of the average customer in the abstract. But more specifically, each of your customers has their own customer lifetime value or CLV. This number represents an estimate of how much you can expect that customer to spend at your business in their lifetime.
As we noted before, it is far easier to retain former customers than to recruit newer ones. Furthermore, it is easier to grow the CLV of loyal customers than it is to simply focus on bringing new customers through the door, making this the best business process to focus on.
Ultimately, this is a real “win/win” strategy for your business. Every growth in CLV represents a boost in your bottom line. And because many of these satisfied customers will offer word-of-mouth support for your business, improving customer service is a great way to bring in new customers while keeping the original ones satisfied.
Improve Your Customer Service Today
While improving your customer service is vitally important, it’s not easy to do on your own. And this is where we come in.
Here at Confie, we specialize in Business Process Outsourcing. We can help take your customer service and your business to the next level while your key personnel remains focused on what they do best.
To learn what Confie can do for your business, you can email us at firstname.lastname@example.org. Or you can call us at 800-684 -2BPO (2276). We look forward to hearing from you today!