When your business is operating on a low budget, there are probably several functions that will need high priority in terms of allocating funds. Your product team could use some financial assistance and marketing, and advertising can be trimmed down. However, it might seem like a waste of money to invest in customer service teams. Contrary to what many thinks, your customer service team is very important. It can actually be more important than the other teams. It offers a direct connection between your customers and your business.
In business, customer service is important because ir retains customers and extracts more value from them. If you can provide top notch customer service, businesses stand to benefit from recouping customer acquisition costs and gaining a loyal following that can refer other customers and serve as case studies and testimonials. Here are some of the reasons why customer service is very important for business.
Customer Retention is Cheaper than Customer Acquisition
An increase in customer retention of 5 percent can equate to an increase in 25 percent profits. This is because repeat customers have a high likelihood of spending more with your brand and this result in your business having to spend less on operating costs. Customer Acquisition costs – which is how much it costs to acquire new customers, is more for a company that doesn’t invest a small percentage of its budget in customer service. Investing in customer service can substantially decrease your churn rate and this decreases your overall customer acquisition costs.
Customer service represents your brand image
Now you have a good idea of what your brand represents. However, your customers will always make assumptions of your brand and business based on what they see in social media platforms, content they interact with, advertisements and other external marketing materials. Your customer service team is where you have more control over the perceptions customers have with your business. These individuals speak directly to your customers and they have the responsibility of representing your brand when interacting with potential buyers.
Creating more happiness
Happy customer service employees translate to happy customers. No employee will enjoy coming into work if they feel underappreciated and undervalued. Research has shown that happy employees are willing to work harder to achieve business goals. Happy employees will always want to maintain a high level of professionalism and integrity. If you want your customers get the best from your business, start by treating your employees in the best way possible.
Happy customers refer others
When your customer is happy, they are more likely to share their happiness with others. 77 percent of customers are more likely t share their positive brand experiences with others. People will always want to spread a feeling of happiness with others who they share a common goal. It is always a chain of reaction. If you have happier customer service teams, they will work so hard to satisfy and exceed expectations of their customers. If customers are happy, they will always invite others to have the same experience as they have had.