An efficient customer service program is not only important for your company’s customer experience (CX) and the satisfaction of your clients, but it’s also hugely important for a crucial aspect of your business - your bottom line.
A study from the Harvard Business Review has quantified the value of customer experience, demonstrating that companies that deliver excellent customer support will generate higher returns as a result.
The study found that customers who had the best past experiences spent 140 per cent more compared to those who had the poorest past experience. It also suggests that high-quality customer service is the best way of retaining existing customers and generating new business.
Meanwhile, new research from NewVoiceMedia, the “Serial Switchers” report, reveals that poor customer service is costing businesses more than $75 billion a year - that’s up $13 billion since its last report in 2016.
Some 89 per cent of businesses compete through the level of customer experience they offer, according to Gartner, meaning there’s simply no space for companies that offer bad customer service in the 21st Century. Those who wish to thrive need to adopt new ways to innovate their customer service strategy.
So, how exactly does efficient and high-quality customer service impact your company’s bottom line? Advantage Communications has listed the top four ways:
1 - Increased customer retention
Keeping hold of current customers costs considerably less than attracting new ones. In fact, according to a report from ThinkJar acquiring a new customer costs around six times more than keeping an existing one.
The White House Office of Consumer Affairs claims that, on average, loyal customers are worth as much as 10 times the amount of their first purchase. It’s clear customer retention is crucial to your company’s bottom line. Even more so when considering a study from Temkin Group, which states loyal customers are five times as likely to repurchase, five times as likely to forgive, seven times as likely to try a new offering, and four times as likely to refer your company.
Consider how your company can make the most of using an outsourced call center to deliver your customer service needs, including an improved CX and access to innovative new technologies, such as artificial intelligence (AI), that are transforming the industry.
2 - Happy customers drive sales
The efficiency of your customer service agents can impact conversion rates and the amount that your customers are willing to spend. Around 55 per cent of consumers are willing to pay more for a good experience according to ThinkJar, meaning more sales and higher revenues.
A customer experience that focuses on the happiness of your customers will help your company build a loyal customer base that is not only willing to pay for your products or services time and time again but is also happier to pay increased prices, happy in the knowledge your business offers the best experience in the industry.
3 - Your company reputation is on the line
It’s easy to think word-of-mouth marketing is a thing of the past, but a renewed focus on CX has brought it back with a vengeance. The reputation of your company will determine how successful it is.
Bad customer service news travels fast, whether it be a customer telling their friends not to use your company or a simple bad review left on the internet. Take the time to address your customer’s issues with a proper omnichannel support strategy and you’ll reap the rewards of more customers in the future.
4 - High-quality support can justify increased prices
While on the note of company reputation, the pricing of your products, specifically in relation to that of your competitors, is highly important to how consumers will perceive your business. However, that doesn’t mean you need to beat your competitors for price - you need to beat them in customer experience.
Around 55 per cent of consumers are willing to pay more for a guaranteed good experience according to a study from ThinkJar, while Walker reports that customer experience will become more important than price and product by 2020.
More consumers are willing to spend more of their money to guarantee they will receive a quality customer experience. If done in a careful and in a gradual way, having strong customer service could allow your company to charge a premium for the services and products you provide.
Ready to learn more about transforming your customer service and improving your bottom line? Contact Advantage Communications today to find out how we implement state of the art technology and high-quality customer service agents to boost your company’s revenues.