The Benefits and Savings from Great Customer Service

August 28, 2012 Jennifer Christian

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When it comes to delivering great customer service it doesn’t matter if you’re the business owner or an employee in a customer service department. Communicating clearly and offering solutions to problems will translate into profits and savings if your customer service practices are top notch. Even standard customer service practices have an impact on your business when it comes to word-of-mouth referrals and customer acquisition, client retention, relationship management, and most importantly, repeat business. All these combined, or individually, offer savings and remarkable improvements to your business positioning when compared to your competitors.

Word-of-mouth referrals come from satisfied customers and are fostered by building a gratifying experience for your customers. This type of customer acquisition seems effortless, but nothing can be farther from the truth. Although you didn’t initiate the connection, you did put the work in elsewhere. For example, one of your customers received a product or service and was not satisfied. You were able to salvage that relationship by providing excellent customer service and resolved the customer’s issues. About 42% of the time this customer goes and tells their friends, family, and peers about how you cared enough to fix the problem. If just one of those people seek out your product or service then they have become a new customer, acquired through word-of-mouth. If you think about it, this is a return on your investment because you have invested in the customer service employee, their training and tools, the effort to correct the issue with your client, and the brand itself.

Customer acquisition is always a trending topic when it comes to searching for tips and best practices on building your business, but the underlying element is to have a strong foothold on customer service practices. Great customer service encourages the development of relationships between your brand and your target market. These relationships not only foster the word-of-mouth phenomenon but also provide an outlet for customer relationship management and client retention. These two factors are crucial to increasing your sales and profit margins.

Consider the facts; new customers cost five times more than the cost to retain and sell to an existing customer, and existing customers are 120% more likely to purchase from you again as opposed to new customers. To simplify this, when your marketing dollars are focused on acquiring new customers you are taking away from the profits of current customers that engage in repeat business and the profits of word-of-mouth referrals. To provide great customer service you must consider strategies and practices that will influence a productive work atmosphere for representatives. This is key to delivering a positive experience to your customers.

Treating your employees with respect and providing an outlet to share ideas and frustrations will encourage them to keep a positive attitude. Also, by having the tools and knowledge readily available, and in play, your employees will feel more confident to answer questions and address complaints. Happy employees are assets to the company because they have a stronger will to work and remain healthier due to that fact alone. When employees are unhappy, sick days and costs increase, and work flows become interrupted leaving tasks to fall between the cracks. You may also see higher turnover rates and disgruntled employees causing trouble and theft due to unsatisfactory work conditions.

To sum it all up, taking care of your customer service employees facilitates great customer service for your customers, simultaneously yielding higher profits for the business in terms of sales and savings. Statistics provided by:

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About the Author

Jennifer Christian

Nicole Neuman is a Local Marketing Coordinator at Sproutloud who graduated from the University of Miami with a B.S.B.A. She is a practical marketer with varied experience from event planning to office organization to data transfer and project management. She has a strong history in customer service and prides herself on attention to detail. She loves to travel, read, and basically anything on the water. She also happens to have slight addictions to Pinterest and strawberries.

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