You have probably heard that the customer is always right at least a hundred times in your life. While we understand what it means, we rarely ever tend to ponder why corporations use this ideology so strongly? Well, in today’s day, you will see a plethora of different companies offering the same type of goods and services. So, corporations are more concerned with retaining their customers since there are other potential substitutes present, which people can switch over to at any time. There are several ways of customer retention, such as products, promotional campaigns, and more. However, nowadays, people tend to focus on the service that they are provided more than anything else. There is no doubt that every customer wants to feel special and important. This is why customer service is an integral part of doing business. So, how exactly is customer service important to any type of business? Let’s find out.
How Important Is Customer Service to Any Business?
No matter what type of business it might be and whichever industry it might operate in, customer service is incredibly important. This is due to the fact that by providing quality customer service, businesses are able to not only retain customers and make them loyal to the brand but also extract valuable information on how they can improve their brand equity in the market.
Good Customer Services Leads to Customer Retention
All businesses know that retaining customers is always less costly than acquiring new customers. In fact, studies show that just a small percentage increase of 5% in customer retention leads to a direct increase of 25% in the profit made. That is because once a business is able to successfully retain customers and gain their loyalty, those customers will begin to spend more at your business rather than a competitor. So, by simply working on providing the best quality customer service, you will be able to increase your profits and start earning more.
Your Customer Service Is a Direct Representation of Your Business Value and Brand Image
While a business, its owners, and its employees understand what the business that they are working for represents, this isn’t always the case with your customers. Your customers will always know what values your business deems important. The fact of the matter is that the maximum amount of exposure that your customers will have will be with your business’s customer service representatives. So, there is no doubt that the customers will begin to form an opinion on your brand based on how they are treated more so than how you claim to treat them through promotional content. According to a recent study, 96% of consumers said that one of the most important aspects that leads to them developing brand loyalty is customer service.
It is even known that 67% of consumers are willing to pay a higher cost if they receive quality customer service. There is no doubt that customer service is an integral part of the success of a business. Not to mention that there is a myriad of statistics to prove and quantify that importance as well.