OUR LATEST THOUGHTS
10 REASONS WHY EVERY CUSTOMER INTERACTION MATTERS
As the old customer service adage says, “the customer is always right.” But when you get wrapped up in other aspects of your business, it can be easy to lose sight of the importance of the customer interaction.
Anyone who works in customer service would probably admit that they’ve been guilty of giving a customer less-than-stellar service. While it is only human to make mistakes, making this particular mistake can be costly. Estimates indicate that businesses lose over $62 billion every year because customers leave after bad experiences.
Still not convinced that customer service is essential? Check out these ten reasons why every single customer interaction is important.
1. Good Customer Service Builds Loyalty
If you are selling goods or services in a crowded market, that means your customers have a lot of options for where to take their business. To be successful, you need to effectively differentiate yourself from your competitors.
Customer service can be one effective way to set your brand apart. Even if you and your competitors provide similar products or services, you can persuade customers to choose you by offering customer service over and above what your competitors provide.
Once your customers begin to associate your brand with great service, they will be more likely to be loyal to your brand. This is important, because it is much easier and less expensive for your business to encourage repeat business from an existing customer than it is to acquire a new customer.
2. Brands Known for Service Can Charge More
Building a reputation for good customer service doesn’t just help you encourage business from repeat customers. It also helps position your brand to be able to charge more than competitors.
Research shows that customers are willing to pay more for excellent service. If you provide great service, you can make more money by selling the exact same products. This can help improve your overall revenue.
3. Satisfied Customers Make Referrals
Once you’ve successfully won over a customer, it becomes easier to win over their network of friends and contacts. A satisfied customer is more likely to recommend your brand to someone else looking for the same services. Also, if a customer is unsure about whether to give your company a try, they will be more likely to go for it if a friend recommends it.
4. Angry Customers Talk, Too
While you can effectively build your brand by cultivating satisfied customers, it’s important to keep in mind that unsatisfied customers have networks too. A single negative customer interaction can be enough to put a sour taste in a customer’s mouth. This may lead them to vent on social media or to warn friends to stay away from your company.
5. Customers Remember Negative Experiences More than Positive Ones
It is particularly important to be mindful of negative customer experiences. This is because, unfortunately, these interactions stick with customers more than positive ones do. In fact, research shows that it takes an average of 12 positive interactions to counteract one negative one.
Keep this in mind when you interact with your customers. It could be possible that, unbeknownst to you, you are engaging in one of those 12 necessary positive interactions to counteract a past negative one.
6. Customers Create Your Online Reputation
One of the key ways for prospective customers to learn about your business is through online channels. Customers will look at social media and online reviews to learn more about your business.
Comments from other customers will be the key source of information they are looking for. If you provide good service for your customers, they are more likely to leave good reviews that others will read.
7. Customers Can be Won Back
While it can be challenging to undo the damage caused by a negative customer interaction, it can be done. But the process of winning a customer over can be much easier if you work to repair the situation before the original interaction ends. You can do this by compensating the customer for their trouble, or by simply offering a sincere apology.
8. Loyal Customers Will Buy New Products
Once you’ve developed a loyal customer base, it becomes easier to build your business. This is because loyal customers are often willing to try new products or services because they already trust your brand. You can even look to loyal customers to test out new products to evaluate whether they will be successful.
9. Good Customer Service Builds Employee Satisfaction
When a business has a reputation for poor customer service, it affects how customers interact with employees.
Think about it. Have you ever contact customer service with a problem, and started with a sour attitude because of bad past experiences?
When customers come to your business with this outlook, it has a negative impact on your employees. It can be exhausting to always deal with customers who are displeased.
By contrast, when you create a reputation for good customer service, customers will arrive expecting a great experience. This will put them in a better mood, which will also be better for your employees.
10. Good Customer Service is More Cost Effective than Advertising
As we’ve discussed, are multiple ways that customer service helps drive more customers to your business. Satisfied customers are more likely to shop with you again, and are also more likely to recommend your business to others. Furthermore, customers who receive good service are more likely to leave positive reviews, which can translate into more customers.
Essentially, satisfied customers work like a free stream of advertising. By providing great customer service, you can establish a network of brand loyalists who can help make your company more profitable.
Improve Your Customer Interaction Today
With these important insights in mind, it’s easy to see why it is important for successful businesses to treat each customer interaction as important. Customers are the lifeblood of any business, so it’s essential to prioritize their needs.
Want to improve your business’s customer service game? Contact us today to learn more about how our customer service insights can help improve your business’s revenue and net profit.