What Are the Benefits of Good Customer Service?

Posted by Doing Better Business on Nov 11, 2019 10:59:27 AM


Make no mistake: customer service is more important than ever. People have wised up to the ways of companies and demand not just a superior product, but a superior experience as well. In fact, it’s customer service which often makes or breaks a company. There are many benefits of good customer service, and many consequences when it’s conducted poorly.

According to market research giant McKinsey, some 70 percent of buying decisions are made based on a person’s experience with a brand – particularly the customer service they receive. That makes a good experience critical to a company’s survival.

Customer service excellence is a part of the DNA of Doing Better Business. Read on to discover some of the importance of customer service, and why it’s worthwhile for every office to pursue.

6 Benefits of Good Customer Service

Customer service isn’t just about making sure that a customer has what they need just enough to make a sale. It’s also about delivering value to the customer long after that sale has finished. When viewed this way, customer service becomes less about the end goal and more about the relationship between a customer and the company. Once that view is adopted, companies can experience the many benefits of good customer service, including:

1. Enthusiastic Customer Loyalty

Want customers to come back? Treat them right. Friendly customer service representatives and approachable employees are the reasons that 73 percent of all customers remain loyal to a brand, according to a survey by RightNow. A friendly encounter helps customers feel recognized, valued, and like the company cares about more than profit. Prove them right and ensure that they’ll keep coming back.

2. Enhanced Brand Cohesion

Many companies espouse mission statements or make pledges to certain values. While that’s great, many companies have also used these as empty gestures to gain brand awareness or a following. As a result, customer trust is at an all-time low because they simply don’t believe that the company walks its talk.

Backup stated commitments with action. For example, if the company’s motto is that it’s the friendliest repair service in town, make sure the customer service experience reflects that. Doing so helps enhance brand cohesion, augment the company’s authenticity, and show customers that this brand is worth being trusted over others.

3. A Positive Reputation

People talk, and some of the most damaging blows to a company and its reputation come from people who walk away upset or dissatisfied with a company. In fact, customer service experiences are so powerful that reputations created by them can persist even long after the company has taken steps to change its ways.

A positive reputation, on the other hand, can have far-reaching effects for a company. A 2015 study on social media and company reputation found that a positive reputation can influence things like news coverage, investor perceptions, and the degree to which negative complaints are considered by potential customers.

4. Increased Profits

Good customer service benefits more than just a company’s reputation. It’s also great for the bottom line. Customer service and customer retention are linked. With happy customers who return more frequently, a company spends less time and energy convincing new customers to shop with them.

Likewise, happy customers more frequently tell their friends and family about a company. Even in the digital age, McKinsey notes that word of mouth remains one of the most powerful advertising techniques a company can leverage to gain business.

5. Better Internal Organization

A lesser-known benefit of good customer service is better internal organization for a company. How? When customer service functions well, a company’s internal communication game is enhanced.

An emphasis on the customer service experience encourages employees to work together, reaching out to departments depending on whatever information they need. Likewise, delivering superior customer service requires infrastructure to support it. It’s harder to find and retrieve exactly the information a customer needs if an employee doesn’t have the tools to do so. When companies emphasize customer service as part of their core business strategy, it transforms their workflows and processes.

6. Greater Employee Motivation and Satisfaction

Like customer service and internal communication, customer and employee satisfaction are also linked. There are some early studies showing that these two features affect one another, creating a cycle that can drive a company in either direction. Good customer service feels good not just for customers, but also employees. Likewise, poor customer service can have a negative impact on employee’s morale, motivation, and mental health.

Customer Service Is Good for Customers... and Business

There are many benefits of customer service across an entire company. From increased consumer loyalty to better internal communication, companies cannot afford to not focus on delivering a superior experience. Customer service is foundational for delivering enhanced value to people and communities. Without it, a company cannot thrive.

Looking for ways to do better business? Improve your customer experience game with the right office technology. Contact us today to get started.

Topics: Customer Service Excellence

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