Why Customer Service Is Important for Business Growth

You’re going to read a lot of things on the internet about how to run a business? What tools should you have? How should you handle your finances? But one thing that you should never forget is that; commerce is centrally based on human interaction.

Trading is basically the relationship between the vendor and the customer, so just like any other relationship, for it to be fortuitous you should handle that with care. This is where customer service takes the top of the hill when it comes to sustaining a profitable business endeavour.

Customer service is not just being courteous to your customers, it’s a culture built with an objective of giving exceptional service wherein the value you provided is felt by the customer. It’s true that it may incur costs in the form of money, time, and resources, but in the long run, it will come out as a smart investment. Here’s how customer service can take your business to the next level:

1. Customer Retention

Customers whom you have done business with (and were satisfied) are more likely to buy from you again than new ones by over 30%. Also, businesses tend to favour having repeat customers than always getting new ones who won’t come back. The importance of working on improving customer service is clearly seen in the cost of getting new customers versus taking care of existing ones. Research shows that you’ll likely spend 5 times more to attract new clients than the cost of keeping the ones you have happy.

The highlight here is that it’s illogical to lose a single customer to your competitors because you’ve already spent so much getting them into the door and convincing them to do business with you. When customers can attest to a great experience with your business, they’re likely to choose you every time an opportunity arises. Even with ancillary services, if they feel that you can deliver a good job they’ll be more than willing to offer that business than look elsewhere.

2. Helps with Your Brand

Word-of-mouth is still one of the best forms of advertising and brand recognition today. People tend to trust recommendations from people they personally know, rather than from a banner or an ad they see on TV. It helps your brand in an organic way as testimonials freely given by existing customers can help you elevate it no marketing gimmick can. Sometimes the persona you want to demonstrate to your potential clients comes from the satisfaction your customers get when you take the extra mile in making them feel valued and respected, not on costly ads and celebrity endorsements. The image you want will be imprinted on the minds of the people who may hear or listen to, what your customers are saying.

3. Build New Opportunities

As mentioned, some happy customers will be the ones who’ll bring new business to your doorstep. For example, if you’re a catering services provider, clients who got a taste of your food and the admirable professionalism you showed on previous occasions may recommend you to their friends and family who may have upcoming events themselves. This new opportunity will be highly improbable if you did not make your clients special or you may even have cost yourself valuable referrals to other potential customers.

Yes, when you’re treating your clients like royalty, you’ll be opening yourself to new opportunities especially when other businesses see how you operate. In the example above, if you worked well with the organizers to give your customers excellent service, they, themselves, will offer you new business when they get another call. It’s hard to see a downside when you’re giving out value to the world and everyone experiences it.

4. Reduces Employee Attrition

One thing you need to remember about customer service, the people who face your clients regularly are largely responsible for how you will be perceived in general. We’ve already heard or perhaps made the comments “I won’t be going back there, seeing how awful they’ve treated me”. It’s clear that you must start the culture of exemplary customer experience from within, coming from your staff.

This means that you should make your employees happy and they in turn transfer that positivity to your customers. Richard Bronson famously said: “I take care of my employees because they take care of my customers”. This principle can reduce employee attrition and may reduce the cost of having to train new ones regularly.

There are a lot of reasons why customer service is a pillar in every organization that’s looking to take the next step. Commerce deep down is a relationship between two parties and that relationship must be cultivated with respect and understanding. If it’s not obvious by now, try to evaluate your experience the next time you shop or go to a restaurant, and see the difference between a successful one and a mediocre business.