According to a survey of American Express, more than half of Americans have scrapped a planned purchase or transaction due to bad service. Again, 33% of Americans say they’ll consider switching companies just after a single instance of poor service. US companies lose $136.8 billion per year due to avoidable consumer switching.
Without any shade of doubt, customer service is vital to any solid company. While acquiring new customers is vital to growth, it’s the retention that truly drives the company's revenue. Companies that consistently deliver exceptional customer service always positively experience their clients.
Delivering quality customer service is an outstanding business decision. The best businesses always know this and make customers their only priority. This blog is for all the newbies out there who are baffled by how a strong customer service goes a long way to enhance customer retention and how to accomplish it.
Don Gallegos in his book ‘Win the Customer, Not The Argument’, details why and how brilliance in customer service is integral to any business. Gallegos explains a situation where an angry customer returned a gallon of milk to the grocery store. The customer service term was trained to offer a full refund without asking any questions. Even though the milk carton had a label from a competitor, the customer service team took care of the situation and issued a refund. Thus, earning a lifetime of loyalty.
Thus, one of the driving factors behind successful customer retention is its service. Let’s explore how outstanding customer service is crucial to retention for innumerable reasons-
Although this may seem like an obvious point to you, it’s shocking how customer service can affect your business dramatically. Roughly 90% of consumers have stopped giving their business to a company after receiving poor customer service. Therefore, you should train and put as many resources as possible. You should invest adequate time into making your customer rep team as strong and helpful as it can possibly be. If you fail to do it, you risk losing a significant portion of your client or customers.
When you lose a consumer due to poor customer service, you tend to lose their service and loyalty and offer your customers a chance to take them on. What’s crucial is that to customers, the value of a product isn’t even as significant as the quality of service. A customer is four times more likely to switch to a competitor when the issue that they have is service-related rather than product-related. This implies that you could essentially be handling your customers over to your competitors literally on a silver platter by exhibiting low quality customer service.
It’s not only the customers who leave or complain has a problem with your company. Studies show that for every one of your customers who complain about your product or service related issue, there are 26 other unhappy ones who remain silent about their concerns. Odds are if those 26 customers keep receiving less than satisfactory customer service, they will leave if they don’t notice any change. That signifies if you start to see your retention drop, it’s time to reevaluate and move quickly.
Delivering impeccable customer service is a great business decision for successful customer retention.Here are a few major pointers we have enlisted that every customer support team should practice developing strong customer retention-
Similar to most jobs, it’s all about the training you put into your team. Start by hiring strong candidates that seem personable and good on their feet. Then, ensure to have a well-trained organized process that is based on role-playing heavily, along with shadowing to give new hires the real-world experience before they jump in solo.
If customer service is your priority, you need to make it clear. This refers to instilling the value of customer satisfaction in each and every rep on your team. It also signifies creating a policy to put the customers first. This goes beyond the classic saying ‘the customer is always right’. If some of your customers are less satisfied, go the extra mile to ensure they become pleasantly surprised with your company’s customer service.
If your aim is to have designated teams to deal with different types of calls and issues or rely on automated service to direct your calls, make sure that it’s flawless. 26% of consumers are noticed reporting having been transferred from agent to agent without their problem being solved. Do not allow your sales agents to fall into the same pattern. Make a point to establish a smooth caller system, with a clear definition of roles, departments, and who owns which issues. Ensure that there should never be more than one transfer per call.
A speedy response could mean all the difference between a satisfied customer and the one who decides to leave your business. Therefore, focus on enforcing efficiency and speed, both of which stems from knowledge and well-trained staff. Regardless of communication channel, speed should always be a top priority whenever customer retention is at stake.
Customer loyalty programs can help create loyal customers and help you gain new customers. Like, studies have found that the recipients of restaurant loyalty rewards are twice as likely to refer a new customer immediately following the reward redemption. Successful and remarkable loyalty programs can also boost the bottom line of your business as they offer motivation for loyal repeat customers to buy more. It is always a more cost-effective and exemplary way to increase sales rather than attracting new customers.
As per the Harvard Business School research, increasing customer retention rates by only 5% increases the profits of a company by 25-95%. Hopefully, the golden strategies given above give you certain fresh ideas to turn your brilliant customer service into customer retention. But, remember they are not a cure-all. Finally, your customer service will do most of the heavy lifting in keeping your customers loyal, and there are no shortcuts for that.
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Keira is a PhD expert with a specialization in Communication, Cultural & Media Studies from a prestigious university. Having been scammed by online academic writing services as a PhD student, Keira took up the responsibility of weeding out the scammers. When she is not busy stalking these money mongers, you can find her travelling to the most bizarre destinations or breathing life into her crazy imagination, on her canvas.
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