7 Reasons Effective Service Management Can Increase Your Profits
We all know that providing excellent customer service is important. But do we really promote a culture that ensures the quality of our customer support does what it should – drive bottom line profits?
It should be self-evident to anyone who has ever been a customer that by increasing the quality of support services, you can actually increase your profit. And, by offering poor or even average customer service, we risk negatively impacting our revenue.
Here are just 7 reasons why customer support can impact your bottom line
1. Customer support directly affects retention
Customer retention is absolutely vital for any company. This is because retaining an existing customer costs significantly less, both in terms of marketing and maintenance, than landing a new one. Additionally, repeat customers are more likely to spend more money on each purchase. So, if you want to make sure your profits are healthy and your retention rates are high, you must strive to provide amazing customer service.
In fact, a variety of research indicates that between 75% and 90% of customers who are dissatisfied with a customer service experience will, rather than telling you if something is wrong and how you can improve it, just not come back. Therefore, it’s in your best interest to provide consistently high-quality support services to help increase your retention rate and improve your bottom line.
2. Customer Support Impacts Conversion Rates
Your customer’s experience with your support team can directly affect whether or not they actually carry out a future planned purchase. Every single one of us has had a situation where we have chosen not to make further purchases because of poor customer service. That means that if you’re not providing helpful, timely and proactive customer service, then you are literally giving away money to one of your competitors.
3. It’s really hard to make up for a bad customer experience
Of course, we all make mistakes, but when it comes to customer support, it’s in your best interest not to make them. It takes as many as 12 good experiences for a business to make up for a poor one. Just one mistake has the ability to drive customers away, repeat those mistakes and you may as well drive your customer down the road to another supplier yourselves.
4. Customer support impacts your company’s reputation
Your company’s reputation is everything. A good reputation could be the difference between an average business and a very successful one. Unfortunately, when it comes to support services, bad news travels fast and far. In fact, twice as many people hear about a bad customer service experience than a good one. That means that it’s well worth the trouble to take time to address any issues that your clients have. It will enhance your company’s reputation, which could lead to more customers via word of mouth in the future.
5. Quality customer support can help you attract new customers
While it’s true that a tarnished reputation could lead to a loss of customers, it’s also true that a good customer support reputation could actually attract new business. That means that by making sure your support services are at the core of your business, you have the potential to gain new customers and make more money, just based on word of mouth alone. In fact, three out of five people say that they’d happily swap companies in search of a better service experience. Improve your bottom line through retention by providing a good support experience, but also let your reputation rise and help you bring in new customers too.
6. Quality support may allow you to raise your prices
If you go about it in a careful and gradual way, having really strong customer service may allow you to actually charge more for your services or products. That’s because most customers are willing to spend a little more money to guarantee that they will receive a quality customer service experience. If you decide to go this route, you won’t regret it. In fact, 70 percent of U.K. consumers are willing to spend more money to go with a company who they believe will provide first class customer service.
7. Happy customers spend more
The emotional experience a customer has during an interaction with your company directly impacts how much money they are willing to spend. Research indicates that 70% of buying experiences are based on the emotional experience of the customer and how he or she feels she is being treated. So, by really focusing in on the quality of service that your support team offers, you can make customers feel happy and valued, which will directly impact sales.
Customer support is the backbone of any business. It has the ability to make or break a customer’s experience and, therefore, impacts your company’s bottom line in many ways. Good customer service makes you more money. But remember, just because a customer isn’t complaining doesn’t mean you should automatically assume that they’re satisfied with your support experience.
On average less than 20% of dissatisfied customers let the company know that they’re unhappy with their service. A constant focus on customer service from all of your team, irrespective of their role in the business, will pay you back where it matters most – on your bottom line.
At Vantage, we pride ourselves on our experienced and knowledgeable customer support team, who are always on hand to answer our clients’ queries or concerns. Get in touch with our team today to find out how we could help on 01462 791120 or by emailing firstname.lastname@example.org.