Start viewing customer service as an asset to your business
Customer service is no longer limited to the act of “servicing customers”…it does not speak only when spoken to, and should not be seen as a cost, a requirement, or even a debit on the balance sheet. It's time to recognize the sustainable value that customer service can add to your business.
Too many companies think of [customer service] as an expense to minimize. We believe that it’s a huge untapped opportunity for most companies, not only because it can result in word-of-mouth marketing, but because of its potential to increase the lifetime value of the customer.
–Tony Hsieh, CEO of Zappos.com
4 reasons why customer service is an asset to your business
1. Creates a great customer experience
When it comes to creating a great customer experience, customer service is the largest differentiator between companies. Joseph Jaffe, author of Flip The Funnel, goes so far as to describe it as “a pivotal pillar of the customer experience imperative.” This is the easiest way to show appreciation for your customers and keep them coming back for more.
2. Drives word of mouth
The primary reason customer service is an asset to your business is its impact as a strategic driver of word of mouth. By consistently delivering exceptional customer experiences, you increase your customers’ willingness to market your brand for you — minimizing customer acquisition costs and increasing conversions.
Failing to meet customer expectations can also have serious consequences. Negative interactions with a business are spread to twice as many people as positive ones. This is because a dissatisfied customer will tell between 9-15 people about their experience. So make sure to keep your customers happy!
3. Increases customer retention
In many ways, customer retention does more for your business than customer acquisition…which is why it’s so important to keep your customers coming back to your store. This is because it can cost 6-7 times more to acquire a new customer than it does to retain an existing one. Not only that, but the probability of selling to an existing customer is 60 – 70% while the probability of selling to a new prospect is 5-20%.
4. Establishes dialogue with your customers
Customer service provides a multitude of opportunities to create genuine dialogue with your customers and demonstrate your appreciation for their business. Don’t hide the ‘contact us’ page on your website. Make yourself available! Take a note from Zappos.com — they put their phone number on the top of each page on their website. Each service experience is an opportunity to strengthen that customer’s loyalty to your brand.
Another great way many brands are accomplishing this is through @support twitter feeds. It is important to know that real time responses are essential. Don’t just respond to calls for help…make your customer service proactive and anticipatory. Ask if there’s anything you can do to help before something goes wrong. If you humanize your brand by serving your customers in the public domain you will build consumer’s trust. Also, don’t forget to always be listening!
Over the years, the number one driver of our growth at Zappos has been repeat customers and word of mouth. Our philosophy has been to take most of the money we would have spent on paid advertising and invest it into customer service and the customer experience instead, letting our customers do the marketing for us through word of mouth.
–Tony Hsieh, CEO of Zappos.com
Customer experience isn’t just something that impacts the way your customers view your brand. It is your brand.