Why Is It Important To Provide Good Customer Service?

Posted March 9, 2020

African American male call center worker looking at screen, close-up.

Provides value

Not bad customer service programs should focus on treating customers well, answering questions and exceeding expectations. This approach helps businesses engage customers and build strong relationships.

Retains customers

Keeping loyal customers is less expensive than getting new ones. Research shows that it costs about five times more to attract new customers than to retain existing business. Satisfied customers become devoted buyers when a business concern is trustworthy and provides skillful customer service. Research shows there is a 60% to seventy% likelihood that satisfied customers will render to make new purchases.

Creates endorsements

Loyal customers provide positive endorsements and good online reviews that can assistance businesses strengthen their brand. A loyal customer, on average, is 10 times more valuable than their offset purchase. Research shows that people oftentimes make purchasing decisions based on recommendations from family unit and friends vs. advertising messages. Here are 4 statistics:

Almost 97% of customers will tell others nigh very good or excellent client service experiences.
Nearly 70% of people would spend more than money with a company that has excellent customer service.
Approximately 24% of satisfied customers will return to a business concern two or more years later a good customer service experience.
Inquiry shows that 59% of people would try a new company to receive amend client service.

Prevents business failure

Near 96% of American businesses shut their doors inside 10 years. One of the contributing problems is poor client service. Buyers get frustrated over small problems that are not addressed. It happens when a business does not have practiced client service assembly who follow up on questions and promptly fill up requests.

Reduces employee turnover

Employees want to work for businesses that appreciate worker contributions, encourage new ideas and treat customers fairly. When people work for an employer that provides good client service, they are more engaged in their piece of work. They go advocates for the business organization. Plus, they are more willing to stick with the company through business challenges and economical changes.

Customer service case

Customer service programs are important in every business concern industry, including employee benefits. For case, the Ameritas grouping division that handles dental, vision and hearing care insurance, has a potent runway record for taking exceptional intendance of its customers. For more than 13 straight years, its claims contact heart associates have earned BenchmarkPortal's Center of Excellence award, an achievement only held by a handful of other companies.

Sources:
Forbes
Entrepreneur
Inc.
Help Scout