Importance of Excellent Customer Service
Differentiation- Customer service enables the organization to differentiate itself from the competition. Consider for instance 2 competing supermarkets, which get item X (eg. cooking oil) from the same producer, through the same distributor, at the same discount and price. They will mostly sell this product for the same price. Considering there is no value addition to the product, the only reason a customer would prefer one of the supermarkets over the other is customer service.
Future Indicator – It is an indicator of possible increase in future service uptake. A company with excellent customer service is more likely to get repeat business from customers. Consequently, the company will benefit with greater sales and profits. Contrarily, companies with poor customer service may lose customers, which will have a negative impact on business. It costs a lot more money for a company to acquire a customer than to retain them, due to advertising costs and the expense of sales calls.
Value for Money – It gives clients satisfaction for value for money.
It reduces client attrition. We lose to our competition when we serve our customers poorly.
Publicity – The best advertising is done by the satisfied customer. On the flipside, bad customer service gives our business bad publicity, which is always expensive to counter. When customers receive good service they tell 10-12 people on average, but when they receive bad customer service they tell at least 20 people.
Feedback Channel – It is a channel for client feedback about our services.
Improves Business Sustainability – Excellent customer service increases customer loyalty thereby enhancing the business sustainability.
What is Excellent Customer Service?
–Treating your customers respectfully
-following up on feedback
-handling complaints and returns gracefully
-understanding your customers’ needs and wants
– exceeding customer expectations
– going out of your way to help them
-Understanding and Empathy
-Options and alternatives
WHY CUSTOMERS LEAVE
-Dissatisfaction with the service (14%)
-Referred to a competitor (2%)
-Attracted to another competitor (9%)
-Attitude of people representing the business (68%)
-Other Reasons (6%)
Other Facts about Customer service
-Customers will spend up to 10% more of the same product with better service.
-There is 82% chance for customers to come back when they are satisfied.
-There is a 91% chance that poor service will send away the customer for good.
-It takes 13 extremely good customer experiences to reverse a single bad customer experience. It’s therefore important to always make sure that we satisfy the customer because it is costly otherwise.
-The stubborn customer always turns out to be very loyal.
-Out of 5 dissatisfied customers, only one complains to us. Therefore his complaint should not be seen as a bother, but rather a feedback about our services.