“Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them.”
-W. Edwards Deming
Businesses know that providing positive experiences for buyers can dramatically impact their growth.
But, often customer service takes a back seat to the daily demands of running a business.
Review five reasons why good customer service is important as featured in Entrepreneur magazine.
- Provides value – Great customer service programs should focus on treating customers well, answering questions, and exceeding their expectations. This approach helps businesses engage customers and build strong relationships.
- Retains customers – Keeping loyal customers is way less expensive than getting new ones. Research shows that it costs about six to seven times more to attract new customers than to retain existing business. Satisfied customers become devoted buyers when a business is trustworthy. Research shows there is a 60 to 70 percent likelihood that existing customers will return to make new purchases.
- Creates endorsements – Loyal customers provide positive endorsements and online reviews that can help businesses strengthen their brand. A loyal customer on average is 10 times more valuable than their first purchase. Research shows that people often make purchasing decisions based on recommendations from family and friends, rather than on advertising messages.
- Prevents business failure – About 96 percent of American businesses close their doors within 10 years. One of the contributing problems is poor customer service. Buyers become frustrated over small problems that are not addressed, such as unclear communication, slow follow up on questions, or ignored requests.
- Reduces employee turnover – Employees want to work for businesses that appreciate worker contributions, encourage new ideas and treat customers fairly. When people work for an employer that provides excellent customer service, they are more engaged in their work and become an advocate for the business. They are more willing to stick with the company through business challenges and economic changes.