Have you ever noticed a brand being introduced and then growing too much only to take a nosedive?
Well, if you look at the reason behind their downfall, you will notice that it has something to do with their customer service. Based on a recent study by Forbes, products, and services are nearly the same and generally lack innovation so the only thing that helps in retaining the customers and helping the brand grow is their customer service. Through customer service, you can retain the customer, boost customer loyalty and improve customer engagement.
To make sure that businesses are running smoothly without losing their profit and customers, they have started investing more in customer service and boosting customer experience.
A recent study by CSGI mentions that companies have increased their investment in customer service. However, more than 50% of the customers still claim that there is room for improvement. Apart from this, more than 23% of the customers of these brands claim that customer service has even gotten worse regardless of the efforts and investment in this domain.
Customers expect the customer service of the brand to offer a one-stop solution for everything. This ranges from complaint management service to technical support, guidance, and repair. If you are looking for an ideal example, we would recommend Optimum customer service. With Optimum customer service, you get 24/7 free customer service which offers not only complaint management and technical guidance but also Optimum customer service pay bill service. With this service, you never have to leave the premises of your home and can complete every possible task at home with no extra work.
X Reasons Customer Service Is the Most Important Department in Business
Since customer expectations are increasing and most brands have failed to meet the expectation of the customer, you need to understand why customer service is important.
With the help of this article, you will get to see some of the major reasons customer service is the most important department in the business.
- Improves Customer Retention
Customer retention is one of the biggest issues in the current competitive business world. For every brand, there are thousands of competitive businesses with cheaper prices and better products. This is only promoting brand hopping (switching brands based on convenience). With the use of good customer service, brand customer retention can significantly improve.
- Helps with Customer Loyalty
Customer loyalty helps not only keep the business afloat but also helps the business deliver the best for its customers. Businesses, where customers come and go, generally suffer because customer loyalty is less. However, with good customer service, the customer feels valued and heard. This eventually improves customer satisfaction, which also helps with customer loyalty.
- Helps In Reducing the Marketing Budget
Generally, brands have to go above and beyond with their business marketing. This is the reason big brands spend more than half of their profit on marketing. However, with good customer service, you will have a good enough reputation among your customers that eventually the customer will start their referral program for you. This word of mouth marketing style is much more effective as compared to other marketing styles. Another important thing is that it will significantly reduce your marketing budget while offering you a much better success ratio.
- Boosting Revenue
As the economic situation is becoming dire, businesses are struggling with managing a steady income flow and revenue. However, with good customer service, you will be able to boost customer satisfaction.
Eventually, better customer satisfaction will help you improve your revenue and keep your business afloat. This is one of the most important reasons because, amidst the economic crises where businesses are shutting down left right, and center, good customer service will help you improve the revenue and make your business successful without adding to your operational budget.
- Competitive Advantage
Generally, people think that innovation in a business offers it a competitive advantage. However, in real life, most people have a good business idea but the execution is so bad that it offers them no competitive advantage at all.
For instance, most innovative features are launched by Android but Apple can perfect each feature and polish it as well. Moreover, Apple has much better customer service, which gives them a competitive edge.
- Helps with Brand Awareness
Brand awareness helps in bringing in more customers and generally, businesses spend a lot of money on brand awareness. However, with good customer service, customer retention improves, which further leads to increasing brand awareness via word of mouth. According to a recent study, customers take word of mouth as a much better and more reliable source of brand awareness as compared to any other tactic. In short, you will not only be working on marketing but also on brand awareness.
- Business Longevity
In such a cutthroat startup culture, almost 80% of business fails within the first year. Moreover, this average becomes even worse if you add two more years, so business lifespan or longevity is one of the biggest concerns. Experts believe that when brands can work on their customer service, they can retain enough customers to keep their business afloat. Eventually, this leads to increasing the success of the brand.
There is no doubt that the quality of the product and service you offer is important. However, customers are more concerned about being heard rather than the value of money. This is the reason customer service is very important for the success of the business.