5 Reasons Why Good Customer Service is Important

Faizan Idrees    08 Aug 2019 03:09 PM

5 Reasons Why Good Customer Service is Important

Businesses know that by providing positive experiences to buyers can dramatically impact their business growth and it is indeed very beneficial for business too in this race of customer service support now a days. But some time customer service just takes back seat of the daily demands of running a business. In this article we will discuss and review five reasons why good customer service is important for every business.

1. Customer service provides value:

It provides value to the service. Good customer service should focus on treating all customers well and alike, answering their queries, and try to exceed their expectations. By doing this approach it helps businesses engage customers and build strong relationships.

2. Retains Customers:

Retaining loyal customers is way less expensive than getting new customers. Study shows that it costs about 6 to 7 times more to attract new customers than to retain existing customers. Satisfied and loyal customers become devoted buyers when a business is trustworthy. It is highly possible that existing customers will return to make new purchases. If a customer has a pleasant experience with your brand, then there’s no reason for them to look elsewhere. As discussed before, it’s a lot cheaper to retain an old customer than to acquire a new customer. Loyalty is rooted in trust and satisfaction, and customers can trust values of a brand.

Read also: Why Sales is still the most Important Factor for Every Business?

3. Creates Endorsements:

Loyal customers always provide positive endorsements and reviews both offline and online too that can help businesses strengthen their brand. It has been researched and it shows that people often make purchasing decisions based on customer recommendations from family and friends, rather than on advertising ads, messages, emails, calls etc. Study revealed that

  • More than 95 percent of customers will tell others about very good or excellent customer service experiences.
  • About 70 percent would spend more money with a company that has excellent customer service.
  • One fourth or 24 percent will return to businesses two or more years after a good customer service experience.
  • Some 59 percent would try a new company to receive better customer service.

4. Prevents business failure:

Study revealed that about 96% of American businesses close their doors within 10 years. One of the main reason is poor customer service. Buyers become frustrated over small problems that are not addressed from the businesses, such as unclear communication, very slow follow up on questions, or ignored customer requests.

5. Reduces employee turnover:

Employees wanted to work for company or businesses that encourage and appreciate worker contributions, business development, encourage new ideas and treat customers fairly and squarely. When people work for any company that provides excellent customer service, they are more engaged in their work and become more focal and do advocacy for the business. They are more willing to stick with the company through business’s challenging times.

Service excellence and employee benefits

Customer service excellence programs are very important in every business industry for its growth including employee benefits and rewards to encourage them appreciate them and keep employee’s motivation and devotion with the company, brand and its services so these employee excellence programs must be adopted and encourage in every company.