“Improve customer service, increase sales”. This saying holds true across all industries and businesses. A study from the Corporate Equality Index (CEI) showed that when a company offers good customer service, 86% will pay more, and 40% will buy more. It has also been found out by White House Office of Consumer Affairs that superior customer service creates loyal customers who are worth up to 10x the amount they initially spend.
Good customer service can increase companies’ revenue in an instant. Having said this, more entrepreneurs are not just focusing on providing superb products and services but also enhancing customer experience through excellent customer service. Here are some ways to promote more sale opportunities through great customer service.
Good Customer Service Creates Loyalty
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Nowadays, when the competition is fierce, it is a must for customers to feel satisfied. Happy customers are loyal customers. When they feel that they are being valued, taken care of, and treated well, they are most likely to purchase from you again.
Statistics show that majority of the reason on why customers leave a company is because they feel like you don’t care about them. A report from Zendesk showed that 52% of customers would switch to a competing brand because of bad customer service. Creating loyal customers can result from many factors such as your products, services, branding, marketing, etc. However, it is a no-brainer that good customer service is the center of it all.
Whenever a customer has complaints, questions, and requests, they resort to emails, calls, and social media inquiries. It is during this stage that customers develop loyalty to the company whenever responses are quick and well-mannered. After developing a sense of trust, customers are now on their way to make their succeeding purchases.
Good Customer Service Promotes Word-of-Mouth
Customers trust the closest people around them when purchasing anything. According to a Nielsen study, 92% of consumers believe suggestions from their friends and families more than advertising. The very essence of word-of-mouth advertising or marketing is to create buzz. Usually, when customers experience good service from a company, they will tell a person, and that person will tell another. This process creates a chain of mentions for your brand and services, allowing great exposure and interaction of your business.
Therefore, when you provide excellent customer service alongside the products and services you sell, the process of word-of-mouth can create and boost positive impressions of your business. Another study has also reported that 74% of consumers identify word of mouth as a key influencer in their purchasing decisions. A positive review of your brand in return will be a considering factor for new and existing customers to try out and continuously buy from you.
Good Customer Service Creates Repeat Customers
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A study conducted by HubSpot Research showed that 93% of happy customers because of excellent customer service will become repeat buyers. Whereas, customer satisfaction can increase 5% in customer retention rate, which can result in increased profits by up to 125%. In addition, returning customers spend almost 67% more than new clients.
Good Customer Service Helps in Upselling
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Since good customer service builds trust and loyalty, companies are more confident to provide upselling services to its customers. Upselling is the act of offering to customers a more premium product than what they already have. It is also encouraging them to add a new feature or item to their current purchase. Upselling is one way to gain more revenues and are being offered through the business’ customer support.
A good experience becomes your mark. Clients who are satisfied will trust that they will continue to reap excellent services from your business. Because of this, they will be more than willing to try the other company offerings.
Therefore, as much as products and services are being improved countless times, customer service should also be enhanced to provide excellent customer satisfaction.
An amazing customer service can lower costs, attract and keep customers, grow your company, and increase your sales. More than these benefits, businesses should really provide excellent customer service because your customers, the lifeblood of your company, deserves nothing but the best and satisfactory experience.