How Customer Service Can Impact Your Bottom Line
Ask any business, and they’ll tell you that customer service is a priority.
And yet, it seems like poor or mediocre customer service is the norm.
So what gives?
On a gut level, it feels right to say that the customer comes first. But once customer support operations are placed next to marketing, logistics, and all the nitty-gritty it takes to operate a business, it often takes a backseat. And as a result, so do customers.
Let’s be candid here—a crucial part of any business is to generate profit. So it’s understandable that everything will be scrutinized from a financial lens.
It’s easy to see the cost it takes to run a customer support center. It’s not so easy to see the return on investments on a satisfied customer...or the negative effects of a dissatisfied one.
But to be clear, customer experience has a very real impact on your company’s bottom line.
Here are a few statistics that demonstrate the power of customer experience:
In 2017, US businesses lost more than $75 billion due to poor customer service.
It costs 5 times as much to acquire a new customer than to keep an existing one.
Over 90% of customers who have a bad CS experience just take their business elsewhere.
Customers who have a positive CS experience spend 140% more than those who have a poor experience.
These numbers (and there are many other examples out there) paint a very clear picture—how your customers feel when interacting with your brand matters in a big way. And it’s not just affecting business today...it’s also impacting future business and potential customers.
The Ripple Effect
In today’s hyper-connected world, your brand image is at the mercy of the consumer. Remember the United Airlines debacle? A mishandled issue can easily result in hundreds, if not thousands, of people reading and retweeting it in a matter of hours.
And think about the last time you wanted to try a new restaurant, but then came across several reviews complaining about the rude waitstaff. No such thing as an isolated incident anymore.
Start Now
Unfortunately, good news rarely travels as quickly as bad news. But, travel it does. Great customer service has become a differentiating factor for the consumer and they will actively seek out businesses that consistently receive high reviews. Garner enough glowing reviews and a brand’s reputation starts to become a pretty powerful marketing tool.
The key thing to keep in mind though, is that reputations take time to build. Recognizing early on that great customer service needs to be a priority will pay off greatly in the long run. (And if you think about it, in the short run as well).
It’s like that saying goes: The best time to plant a tree was yesterday. The next best time is now.
It’s an Investment, Not a Cost
When customers are taken care of, both pre and post-purchase, they:
spend more
complain less
leave glowing reviews that attract new business
become repeat customers allowing you to spend less on marketing
Not having great customer support in place while trying to grow is like trying to pour water into a bucket with holes in it. You’ll always be fighting an uphill battle. Patch the holes and the bucket will be overflowing before long.
Of course…it’s easier said than done.
Customer support teams and everything it comes with (reps, computers, software, training, management) has a price tag, both in time and money. But no longer should they be viewed just as a source of cost—because they can be quite the opposite. Like a good investment, great customer service will actually help to grow your business.
If you’re looking for customer service solutions, we’d love to hear from you. Contact us here and let us know how we can help!
