Customer service This includes all aspects of customer interaction for the business. Each customer who experiences good service has their expectations fully met or even exceeded, feels that they are getting their money's worth, and, most importantly, remembers the business whenever they have a need.
Former Global Operations and Customer Service Vice President of e-commerce giant Amazon, Marc Onetto, once said: "Customers only create value for businesses when businesses start serving customers well."
Therefore, we can also see the importance of customer service in every business. Especially when prices and marketing activities become excessive and customers are bombarded with too many messages from junk advertising, good customer service will increasingly assert its importance to businesses in today's fiercely competitive environment in terms of both quality and quantity.
3 Core Benefits of Customer Service
1. Contribute to reducing business costs
When customer service is performed well, this department will naturally help significantly reduce business costs. Examples include the costs of finding new customers through online advertising programs, multi-channel advertising, and sales marketing to attract new customers to the product.
According to economic experts' calculations, the cost of acquiring a new customer is five times higher than the cost of retaining an existing customer. Therefore, if a business excels at customer service and maintains customer loyalty, it will retain a relatively stable customer base and significantly reduce the costs of finding new customers and expanding market share.
Along with that, providing good customer service and satisfying customers from the outset will help businesses limit the costs in terms of effort, time, and money involved in resolving customer inquiries or complaints.
2. Customer service helps attract more potential customers.
People often liken sales to a game with numbers. The more potential customers a business has, the easier it is to win the market share battle. One of the most effective ways to increase the number of potential customers is through customer service.
From numerous studies, economic experts have pointed out that: 1 customer who enjoys a good product and attentive service will recommend it to 4 other people in their circle of friends. 1 dissatisfied customer will spread the word to at least 10 other people because of their dissatisfaction and desire for their friends to stay away. Simply put, when you take good care of a customer and make them feel satisfied with both the product quality and service, you are also increasing the credibility of your business in the eyes of the public and exponentially increasing the number of potential customers.
3. Retain existing customers and build a loyal customer base
Customer service will help maintain your current customer base, because retaining an existing customer is much easier and more cost-effective than finding and retaining a new customer. Good customer service will help businesses quickly build a loyal customer base that is ready to generate profits as well as attract new customers.
Providing excellent customer service to existing customers will generate satisfaction and trust from them, which is also the way to create loyal customers who will return when they have future needs and make subsequent purchases.
In an increasingly modern society, customers are becoming more discerning and carefully consider each purchasing decision. Therefore, businesses should not underestimate the importance of customer care. Businesses that offer excellent customer service demonstrate their respect for customers, thereby making it much easier to achieve success.
