Acquiring a new client can cost you 5 times more than retaining a client. When you keep your customers happy, they bring you more customers.
How do you do that?
You can keep your customers happy by providing them with quality products and quality services. Therefore, customer service is an important function of any business.
Few reasons why you should invest in your customer service
Customer retention is cheaper
Loyal customers engage more with your brand. When you focus on them, you spend less on acquiring new customers and advertising and operating costs. Research shows that companies that spend less on customer service and retention have to spend more on customer acquisition.
Customer service strengthens your brand
Your customer service executives closely interact with your customers. Therefore, they can make or break your brand image. Your customers may not understand your vision, brand and business with your logo, advertisements or any other content; the customer service function can explain your brand and represent your company culture and vision through their behaviour. Each client service executive is your brand ambassador.
Happy employees create happy customers
And this becomes even more important for client service executives because they interact with your customers all the time. When your customer service people are happy and satisfied with their work and employer, they pass it on to your customers in the form of good behaviour and timely support.
Company culture improves
When you develop the culture of helping customers and provide them with the highest value, it reflects on each business function. All functions work in sync to support each other and make the end customers happy. They work for a common objective and not for their personal goals.
Happy customers bring new customers
Word of mouth marketing is the best and cheapest form of marketing and advertising. Imagine your business acquiring new customers without spending a penny on advertisements and any other marketing campaigns. Happy customers can make it a reality. They influence and convince people around them to buy your product and services because of their wonderful experience with your brand.
Bloombergsen constructs their portfolio with a relatively limited number of companies to focus on their research. They believe in repeated business with their loyal customers.
Increase brand awareness
Positive customer experience and their word of mouth advertisement can help your brand reach a large customer segment. Happy and satisfied customers talk about your brand everywhere on all social media platforms and forums. Hence, helping your brand to make an impact without even participating in the discussions.
When you reduce your customer acquisition costs and accept repeated orders from your current clients, your ROI improves. Your product may turn faulty, but if you serve your customer right and exchange the product hassle-free, you earn from that customer for life long.
A product can have completion, but human conduct cannot. Therefore, you can make your client service function your strength and a threat to your competitors.