Why Good Customer Service is Important to your Business’s Bottom Line

Good Customer Service is Important to your Business’s Bottom Line

As a business owner, you may have heard that it costs up to five times more to find new customers than to keep the ones you already have. You also know that the latter isn’t always so easy to do. In this highly competitive business climate where customers expect fast, personalized service, your competition is just a click away if you fail to meet their needs.

Applying the golden rule is just one aspect of good customer service. That means you and your employees should treat every customer as you would desire to be treated yourself in the same situation. Keep in mind that each person is a unique individual and not simply a source of revenue for your business. A customer should always feel that your company has his or her best interests at heart and not its own.

Customer Service in the Digital Age

In the age of social media and online reviews, the words of one unhappy person can spread quickly. Whether it’s a sense of obligation to warn others, a feeling of revenge for poor treatment, or another common reason, people who have received poor treatment from a company they entrusted with their business want to feel heard. Our digital age makes that possible. Considering how quickly your company can lose the reputation that it took years to build, treating customers well in every situation is essential.

It Takes Time to Build Trust

One reason good customer service is so vital is that an existing customer is much more likely to buy from your company than someone who has yet to make a purchase. It takes a lot of convincing via various marketing campaigns to get someone new to trust your company enough to buy something from it. A December 2016 Entrepreneur.com article indicates that the likelihood of someone hearing of your company for the first time following through with a purchase is just five to 20 percent. That percentage increases to 60 to 70 percent with existing customers.

People Are Creatures of Habit

The good news in all this is that your customers will stick around and continue to buy from your company when they consistently receive good customer service. They understand how your business works, feel comfortable with it, and don’t want to go through the hassle of finding and purchasing from somebody new. This is true even if another business offers a slightly better price than you do. While it’s hard work to bring in and nurture new customers, the reward is their loyalty.

Happy Customers Provide Free Advertising

Of all the advertising your company can pursue, the most valuable doesn’t cost a thing. Happy customers tell their friends about your business just as unhappy customers do. People trust the personal reviews of those in their social circle far more than anything they read online. Your goal as a business owner should be to make customers so pleased with your products and services that they won’t be able to hold back telling others about it.

 

If you’d like to review the customer service strategy for your business, Business Partner Alliance is here for you.  We provide targeted coaching, consulting and business advisory services to help small and medium sized business owners achieve new heights. We put our passion and experience to work to help business people achieve their goals. Let’s meet for coffee to see how we can work together.