How Good Customer Service Is Critical for Business Reputation and Ongoing Success and what to pay attention to. Retention, revenue, loyalty & value.
Most of us would agree that we would rather be entrepreneurs than someone else’s employees. However, starting a business is not for the weak-hearted. At least it was not that way until technology advanced so rapidly, creating so many opportunities for aspiring entrepreneurs. Things we could only imagine in the past are full-time businesses for some. However, with new technology have also come new ways of handling a business. So if you have been trying to make do with the ways of the past, then read on to update your style a little.
Nature can be a cruel teacher and so can be the cut-throat world of business. If you do not adapt to the changes, someone else takes your place in the market or the world in general. The good news is that all the advancement in technology has increased the prospects of success, so if you change your tactics in time, you can keep being successful in your field.
Several aspects are contributing to the success of an entrepreneur but good customer service is something that can’t be compromised upon if you wish to stay in business for generations to come. If you were to call a business, you would not like being treated as just another ticket. I know I only stick around with businesses that make me feel like I am the only customer they care about. In fact, this is why I continue to be a loyal customer with AT&T TV besides the wonderful channel lineup. However, not many businesses understand this to date. Your customer service team has the power to make or break your company so you must pay enough attention to their training and monitoring.
Let us look into the reasons to clarify why we say customer service plays such a significant role.
If you are a business owner, you surely have one thing in mind and that is to make it profitable. Of course, when you are going to spend all your time, energy, and money on something, you would want something in return as well. However, your products or services may attract customers to your company, it will be the quality of your customer service that can retain them for years. So, you must pay attention to your customer service department if you are looking to generate consistently growing revenues.
A good reputation is crucial in the success of a business and if there is anything that can build your reputation, besides quality products and service, it is your customer service department. Happy customers mean recommendations to everyone they know and those recommendations can work like magic. I do not remember trying a new restaurant or a product unless someone I knew and trusted had recommended it.
This is especially true in the case of internet service providers. It can quickly get confusing with so many options in the country. People would go for the one that someone speaks highly about or the one they have previous experience with. For example, I have been an AT&T internet user for years now, but the first time I was looking at their plans I was only skeptical. Until one of my friends told me that she had been a customer with them and loved the quality of their service.
As much as luring in customers by offering amazing services or products is important, it is even more important to retain the ones that have agreed to use your services. Customer acquisition and retention are two sides of the same coin called stable revenue. Hence, the importance of your customer service team is as much as the marketing and sales teams.
Customer Lifetime Value
A customer’s lifetime value is the amount of money he or she spends on your products or services during his time spent with your company. The more time a customer spends with you the more revenue you generate thus making your customer service directly correlated to the income of the company. A customer who is actively engaged with the company is likely to stay with you longer, thus spending more on the services or products you offer.
Cut the marketing budget by turning your customers into your salespeople. That is right, you don’t always have to pay people so that they would recommend you to others. You have no idea what lengths a happy customer might go to just to convince a friend that your products or services are great. Besides, just as we discussed earlier, happy customers will spend more on your company. Of course, this does not mean you do not need a marketing campaign, but this can definitely help you cut down the cost.
It is obvious that if you went to such lengths and bore several hardships to start a business, you would like to see it flourish and prosper for a long time. Excellent customer service plays a significant part in this as well. If you can create a culture that fosters great customer experience, you will see a growing trend of customer retention, in turn helping your business become successful and survive for generations to come.