How Customer Service Can Drive Your Business Higher ROI

Improving the customer service experience for your customers is a critical component of creating a positive brand image and driving higher ROI for your business.

In this blog, we will take an introspective look at the costs and potential returns of investing in customer support, and how that affects your business.

A high customer satisfaction rate is essential for a thriving business

There are many ways to improve the customer experience, and each one has its benefits. Improving customer satisfaction can have a significant impact on your business, both financially and reputation-wise. Here are some of the costs and potential returns of improving your customer experience:

Increased Revenue

• 70% of consumers say they have already made a choice to support a company that delivers great customer service. (AE)
• A whopping 95 % of consumers say that customer service is important for brand loyalty (Microsoft Dynamics 365, 2018)

Satisfied customers are more likely to return and recommend your product or service to others

Consider the costs of poor customer service: lost sales, missed opportunities, and damaged relationships.

In today’s competitive marketplace, companies that can offer a great customer experience stand to gain an impressive advantage. A well-run customer support department can help your business attract and retain customers, increase sales, and build loyalty. However, many businesses are not aware of the potential costs associated with poor customer service.

Lost sales

• One-third of consumers say they would consider switching companies after just one instance of bad customer service. (AE) 
• 56% of people around the world have stopped doing business with a company because of a poor customer service experience.(Microsoft)

Poor customer service can lead to lost sales. Customers may boycott a company for poor treatment or switch to a competitor because of it. In extreme cases, customers may even file lawsuits or speak out publicly about their experiences.

Missed opportunities

• 91% of customers who are unhappy with a brand will just leave without complaining. (Kolsky)
• 79% of consumers who shared complaints about poor customer experience online had their complaints ignored. (Harris Interactive)

Poor customer service can lead to missed opportunities. A company might not be able to sell their product or service to a consumer because the consumer has such negative feelings toward the company due to past experiences. Similarly, a consumer may decide not to reach out to a company again because of negative experiences with that specific business in the past.

Damaged relationships

• 56% of people around the world have stopped doing business with a company because of a poor customer service experience. (Microsoft)
• After a bad customer service experience, 39% of customers will avoid a company for two years. (Dimensional Research)

The most serious cost of poor customer service is the damage it can do to relationships. Many companies depend on positive word-of-mouth marketing to grow their business; when customers have negative experiences, they are likely to tell others about it. This can seriously damage a company’s reputation and lead to lost customers and revenue down the line.
The potential returns of investing in customer support: improved customer retention, lower churn rates, and increased brand loyalty
On the surface, it may seem like customer support is an unnecessary expense for businesses. After all, who cares if people have negative experiences with our product or service? However, investing in customer support can have a significant impact on your business. Improved customer retention rates can mean happier customers and less churn, which can increase revenue and decrease operating costs.

Additionally, increased brand loyalty can lead to increased revenue down the line as customers become more loyal and spend more on your products and services.

First and foremost, customer support teams require dedicated resources to ensure that everyone who needs assistance is contacted promptly.

In addition, customer support teams must develop custom strategies for addressing each individual’s issue, which can be time-consuming and costly.

Finally, it’s important to remember that not every problem can be solved through customer support—sometimes a business needs to work directly with its customers to resolve a problem. But by taking the time to address these issues head-on, companies can minimize the amount of time and money spent repairing the damage done by unhappy customers in the future.

Ultimately, it’s important to weigh the costs and benefits of customer support before making any decisions. However, by understanding the potential returns of investing in customer support, businesses can make informed decisions about how to best serve their customers.

How to improve your customer service: develop a systematic approach to solving problems, establish clear goals and expectations, and measure success.

Customer service is one of the most important aspects of any company. If you can improve your customer service, you will increase customer loyalty and reduce turnover. Improving customer service also has a positive impact on your bottom line. Here are some ways to improve customer service:

Develop a Systematic Approach to Customer Service

One of the best ways to improve customer service is to develop a systematic approach. A systematic approach means that you have a plan and you follow it systematically. You should have clear goals and expectations for your customers and use specific methods to achieve those goals. You should also measure your success regularly.

Establish Clear Expectations for Your Customers

You need to establish clear expectations for your customers if you want them to feel like they are getting what they paid for. Make sure that your customers understand what they need to do to receive the benefits that they are expecting from your company.

For example, make sure that customers know what information they need to provide to open a new account or claim a warranty. Also, make sure that customers understand what problems they can expect when dealing with your company.

For example, tell them what type of communication is necessary to resolve their problem.

Measure Your Customer Service Efforts

You should also measure your customer service efforts regularly. This will help you determine whether or not you are achieving the goals that you set for yourself. You can also use this information to improve your customer service strategy.

Overall, a systematic approach to customer service is the best way to improve your overall service.

By following a specific plan and setting clear expectations for your customers, you will ensure that they have a positive experience when dealing with your company.

Conclusion

Improving your customer experience is a key part of retaining and growing your business.

By investing in customer support, you can improve the quality of your interactions with customers, reduce the number of complaints and cancellations, and boost loyalty among current customers. In short, an improved customer experience can have a positive impact on all aspects of your business.

There are, of course, costs associated with improving your customer experience. However, given the potential returns – both financial and intangible – it’s worth taking the time to invest in it. So what are you waiting for? Improve your customer experience today!

Author Profile

Deepak Kashyap

A CX expert, keynote speaker, and author, Deepak Kashyap has over 25+ years of experience. His talks on the subject are published on most prestigious forums, and his books have helped to spread awareness about how improving customer experiences can boost sales. Deepak is a prominent speaker who shares his expert opinion about customer experience.

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