The quality of customer service offered by a company has the ability to make or break their brand’s positioning and the number of profits they are going to make at the end of the fiscal year. Poor or even average quality of customer service practices can easily affect the revenue stream of your business and by investing in them sufficiently you can ensure a positive brand image in the market and thus leaving a positive and lasting impact on the revenue.
Here are a few ways in which good or bad customer support can affect your business’ net income in the longer run:
Savings via Customer Retention
Here’s a golden rule, in terms of expense, retaining a customer involves lesser costs than securing a new one for your business. It is always better to invest in retaining the customer first.
Moreover, research suggests that existing customers are more likely to spend more on a purchase than a new customer who is going to be a little more careful while spending another dollar. Therefore, keeping these factors in mind, in order to save and make more money, all you need to do is invest carefully in having a great customer service policy and practice.
Better Conversion Rates
Your customer’s first-hand experience with your business directly translates into your revenue. The quality of customer service will decide if your customer wants to make the purchase or not. Poor or rude customer experience can result in the customer choosing to abandon the idea of making a purchase from your business. This doesn’t stop here, the estranged customer can potentially influence the intention of 10 other prospective customers at least. It means if you are not doing your customer service right, you’re losing business.
Bad Customer Experience can’t be undone
Bad customer experience is rather permanent in nature. It has the ability to drive the customers away and it usually takes over 10 good customer experiences in order to make up for a bad one. It is in the best interest of the business to make sure there are no mistakes made by the customer service, whatsoever. Since a single mistake can drive a whole bunch of customers away and thus cost your business quite a bit of cash.
Quality of Customer Support affects your company’s reputation
A company’s reputation is what it stands for in the market. This is what can bring or take away the business from you. The reputation is the one thing that marks the difference between just good and a great business. Just as Spectrum customer service has managed to earn a great reputation of great customer satisfaction and hence better revenues in the longer run.
Since bad news has a habit of spreading like a jungle fire, and twice as many people talk about the bad customer experience than a good one. This clearly means that it is rightfully worth the time and effort you have to make to retain and satisfy an existing customer.
Quality support may allow you to raise prices
If you manage to develop a good rapport with consistently good customer support over a significant period of time then this gives you room for raising prices without losing a bulk of subscribers. Since a satisfied customer is likely to stay with you for long without any walkouts on price hikes. A happy customer doesn’t mind spending a little more on you rather than investing in a new one with unreliable customer support. In short, they need peace of mind, and they won’t mind paying a little more.
This is where I rest my case that Customer Service is one cornerstone of maintaining a business as it reaches a higher point. Without it, it will be near impossible to sustain in a growingly competitive market landscape.