Why is customer service important

Increase sales. Provide online support or easy ways for your reps to get the answers they are looking for. Save your sale by getting customers and prospects the information they need, when they need it. Retain customers. For small businesses, with limited time and resources, customer satisfaction is even more important. The U. Not to mention that happy customers and word of mouth can also be some of the most effective drivers for new business.

Find opportunities to cross-sell and upsell. Your current customers can be one of your best sources of business. When you connect all of your support channels and the apps you use to run your business, like a customer relationship management CRM app, everyone at your company can be in the know about customers. Support agents can see order histories, open opportunities, and shipping status.

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When building a successful business, everything screams for attention. Within that flood, why prioritize customer service? Yes, service matters. So does product, tech, design, distribution, marketing, sales, manufacturing… and the myriad of other resources in your company. I just need to make sure you prioritize it. Revenue dictates every business decision. Companies measure success or failure based on money in minus money out.

Profitability is king, regardless of whether it happens on day one or day Pick a few customer-related metrics to measure, and track revenue in parallel, to see the connection. Positive reputation leads to higher growth. Reputation goes a long way in a business. It attracts customers, investors, partnerships, and employees. When seeking to improve reputation, start with excellent customer service.

Viral social media campaigns and paid ads have their place, but nothing beats the oldest trick in the book. Great customer service leads to happy customers who talk about your product or service with future customers.

Customer retention carves the clearest path to business success. Keeping current customers happy results in more stable revenue and more accurate predictions. When you master not just attracting customers, but retaining them, it sets a solid foundation for your entire organization.

And, why is customer service important to retention? The majority of consumers sight good customer service as a reason for sticking with a company. You may unsubscribe from these communications at any time. For more information, check out our privacy policy. Written by Swetha Amaresan swethamaresan.

When your business is on a low budget, there are probably several functions that are high-priority when allocating funds. Of course, your product team could use some financial assistance, and marketing — especially advertising — could always use a little padding.

However, it might seem like a waste to invest money in your customer service team. After all, how can it really improve? Contrary to popular belief, your customer service team should be just as important — if not more important than — as your other teams. After all, it's the direct connection between your customers and your business. Still not convinced? Read the following list to understand how essential customer service is to improve your business and relationships with customers.

Customer service is important to your business because it retains customers and extracts more value from them. By providing top-notch customer service, businesses recoup customer acquisition costs and cultivate a loyal following that refers customers, serves as case studies, and provides testimonials and reviews. Investing in customer service helps activate your flywheel because loyal customers will help you acquire new customers, free of charge, by convincing prospects to interact with your brand.

And, their positive testimonials will be more effective than any of your current marketing efforts — and cheaper, too.

Aside from that, let's look at some data-backed reasons why you should invest in your customer service team. According to our research team , the customer acquisition cost CAC — how much it costs to acquire a new customer — is more for a company that doesn't invest a small percentage of its budget in customer service.

Ultimately, investing in customer service can decrease your churn rate, which decreases the amount you must spend on acquiring new customers and decreases the overall CAC. You may have an idea of what your brand represents. However, your customers can't get into your head and they'll make assumptions based on your social media presence, advertisements, content, and other external marketing. Your customer service team, however, is where you have more control over this perception.

These individuals speak directly to your customers and they have the responsibility of representing your brand when interacting with current or potential buyers. Without your customer service team, you have no means of direct communication.

Due to this, your customer service team is essential in relaying to customers what you want your brand image to be. They can help influence customers and convince them of your strengths over competitors. No employee is going to enjoy coming into work if they feel under-appreciated compared to employees on other teams. The same goes for your customer service team. However, their reasoning behind serving customers is less about wanting to provide quality service.

Instead, it's about maintaining their professionalism and integrity, not wanting to get fired before quitting, being empathetic to customers, but getting recognition from them in the end. Therefore, if you want your customers to do their best work, they should feel respected and appreciated. Only then will they find intrinsic motivation for doing a good job and serving their customers the right way, which will lead to your customers also feeling more respected and appreciated.

And, when your customers are happier, they're more likely to spread the goodness to friends, family, and coworkers. Think about it: if you have a stunning experience with a brand, you're probably going to rave about it to your friends over dinner later that night.