Why is Customer Service Important Business
Why is customer service important business - 4 Reasons Why Customer Service is Important for Your Business
There are lots of different types of customers but only 4 categories. The 4 categories being prospective customers, current customers, high value customers and lost customers.
The prospective customers are the ones that haven’t bought anything from you but know about you, they know you exist, and they know what you do. When it comes to customer service with this category it has to be made easy for the prospective customer to shop with you. Whether that’s online or in person. The more difficult you make it the more likely they will go and spend their money with someone else.
The second category are your current customers. These are the ones that have visited your website or your physical business and bought something.
The third category are your high value customers. These are the ones that love you. These are the ones that will do your marketing for you. They will give you testimonials and tell the [people they hang out with how great you and your products are.
The second group need to be nurtured into the high value group and you can achieve this by constantly exceeding their expectations. Customer service isn’t a thing you do, it’s something that needs to be at the beating heart of everything that the team do and say. It needs to be something that comes naturally.
The fourth group of people are the ones you have lost, and like it or not we all have them. There are various reasons why customers leave you. It could be the price; it could be down to poor service, or it could be because of a new shiny competitor that has come along. Your job and your team’s job are to get them back and a powerful tool is above expectation customer service.
4 Reasons Why Customer Service is Important for Your Business
1. Retention
2. Turnover
3. Reputation
4. Trust
Customer Service Infographic by Ultimate Leadership training Ltd
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Why is Customer Service Important Business
There are 4 diseases of non-performance that are killing businesses today. These are:
- Detailitis
- Excusitis
- Blamalitis
- Procrastination
Tackling the above are imperative for a business to be successful!
#1 Retention
42% of customers are put off by rude or unhelpful customer service staff. (NewVoiceMedia)
Excellent customer service is great for retaining team members and customers. I, as a customer, certainly won’t re-visit a business when I have experienced poor customer service which is such a shame, but the fault lies with the business owner or manager.
Once a customer becomes a customer (category 2 above) it’s then everyone’s responsibility to convert them to a high value one or they could potentially become a lot one.
From a team members point of view, not many of them like working in a disruptive environment where customers complain a lot. Managers and business owners need to sort their systems out and create an easier flow for the customer and if there is a complaint a new system needs to be implemented to ensure it never happens again – no excuses.
#2 turnover
Customers who had the best past experiences spend 140% more compared to those who had the poorest past experience. (Harvard Business Review)
Talk about high value customers. When we deliver marketing training, we advise clients to send a different message out to each of the four categories of customers. These customers who spend 140% more clearly have an emotional attachment to your business and your team. Keep it up and you’ll keep them for life.
#3 Reputation
80% of companies say they deliver “superior” customer service. When the same question is asked from customers, only 8% of people think these same companies are really delivering. (Bain & Company)
I delivered a customer service training course recently and one of the learners asked how they were supposed to find out what the customers really though. Really...? How about ask them!?
So, we did. We went out into the street (as part of the training) and asked around 30 people who walked by what they thought about the business or what they have heard. The results were an eye opener for the business and the rest of the day was taken very seriously.
#4 Trust
Once a business loses a customer, 68% of consumers will not go back. (Accenture)
Clearly cash is the life blood of the business and if you cut off the cash or parts of it the business will suffer. It’s not impossible to get lost customers back and we concentrate on this during our complaint handling course
Want to Increase Your Team’s Customer Service Skills?
If you’re struggling to motivate your staff, or the quality of your customer service just isn’t meeting your customer’s expectations, Ultimate Leadership’s powerful one day In-House Customer Service Skills Courses are an excellent start.
Like with all our training we recommend a period of coaching afterwards to backup the skills and embed the knowledge further. Contact us for further information.
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Why is customer service important business
As well as lots of smaller businesses and organisations, below are examples of some larger organisations who have received training from our director of learning at Ultimate Leadership Training:
Please contact us to discuss any training requirements you have, we either deliver for you or sell you the course for your trainers to deliver to your team
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Why is customer service important business, customer service skills training course, complaints handling course, building a business with excellent customer service skills exceeding customers expectations
Why is Customer Service Important Business