Small business owners face many challenges when competing with larger enterprises. Today’s consumers have become more discerning, and a customer’s loyalty depends entirely on the experiences they have when dealing with a company. One way smaller companies can differentiate themselves from their competitors is to ensure they provide superior customer service.
Customer service has become one of the most important aspects of running a sustainable business. One bad customer experience can damage a company’s brand image. Surveys show that 96% of consumers think that excellent customer service is important to them for their brand loyalty. Similarly, companies that invest in customer service, on average, make 5.7 times more revenue than those who lag behind them.
Five Benefits of Having an Excellent Customer Service Strategy
Businesses that make customer satisfaction a priority generally perform better than their competitors. While it is important to attract new customers, for smaller companies, it’s essential to ensure they keep coming back. Here are five benefits that can be enjoyed by small businesses that invest in their customer service strategy.
1. Improved Customer Retention
One of the biggest benefits of implementing a superior customer service strategy is turning first time buyers into loyal customers. Not only will a happy customer continue doing business with a company, but they’re also four times more likely to tell their friends about their experience. Repeat business naturally leads to increased revenues. By creating personal connections with customers and showing them the company values their business, a company can improve customer retention.
2. Generates Brand Awareness
Having a brand image synonymous with excellent service will also help drive up revenues. A single dissatisfied customer can be devastating to small businesses. Giving every customer exceptional service will lead to a reputation of excellence within the community and help increase revenues. Maintaining a service-orientated brand identity and building customer trust can be an effective marketing tool in its own right.
3. Increases Customer and Employee Engagement
Employee morale is vital for running a successful business. Happier employees are more productive and helpful. Making customer satisfaction a top priority and teaching employees how to deal with different situations can significantly improve customer engagement. A work environment that encourages everyone to be empathetic toward customers (and other employees) will lead to a happier workplace. Employees will be willing to go the extra mile to keep customers satisfied while also enjoying coming to work.
4. Gives Smaller Businesses a Competitive Advantage
Although smaller businesses cannot always compete on price with large enterprises, customers may be willing to forego paying less for a product if the service is worth it. This will allow smaller businesses to remain competitive by creating the perception of adding value to a customer’s experience. It’s important to note that building long-lasting business relationships is easier for smaller companies as they are closer to their customers. By being part of the community and delivering additional value to customers, small businesses can depend on continued support from their local patrons.
5. Leads to Innovation
Engaging with customers and understanding their needs will create opportunities to innovate. The more feedback a company gets from its customers, the more likely it’ll be for them to identify areas they could excel in and provide better products and services. Focusing on every experience a customer has with the company can also lead to cross-selling opportunities. If the business doesn’t have a product or service available, they can refer the customer to a business partner. This will share the love while also serving the customer’s needs.
How to Improve the Customer Service in a Small Business
Improving the level of customer service in any company starts from the top. By investing in employee training programs, sending thank-you messages to customers, and building personal relationships, small business owners can improve their customer retention and improve employee morale.
Remaining dedicated to customer satisfaction requires everyone to respond effectively to problems clearly and consistently. For smaller companies, engaging in the local community they serve will also help increase awareness and drive more customers through their doors.
Get the Latest Customer Service Information from Doing Better Business
Letting customers know the company values their patronage is the first step to building lasting business relationships. Doing Better Business remains committed to customer service excellence. To this end, DBB maintains a PROs Elite 100 certification, which demonstrates a dedication to providing unparalleled customer service.
DBB continues to focus on quality, treating every customer like the only customer, and ensuring employees receive the necessary training. With a team of dedicated experts and a service offering that places the customer at the top of our agenda, DBB has served communities for more than 40 years. DBB provides Managed Print Services, Managed IT, and other business productivity tools that can help small companies remain competitive in a challenging business environment.
To find out more about leveraging customer service to improve revenues, and foster customer loyalty in your business, download our Benefits of Great Customer Service in the Digital Age guide from here.