Top 9 Reasons Why Customer Service is Crucial

6) Customer service enhances customer lifetime value

CLV, or customer lifetime value, represents the total revenue a company can expect from an individual customer. It is an extremely important metric, and growing this value indicates that your customers are purchasing more from you.

One of the best ways to increase your customer lifetime value is to invest in your customer service. If your support team is great, customers are more likely to make repeat purchases. Or at least, they’ll let others know how good your customer service is.

7) Superior customer service gives a competitive edge

One bad experience causes 60% of customers to give up on a brand. But 67% of this churn can be prevented by resolving the customer’s issue on the first contact. 

Providing excellent customer service helps you retain your existing customers. It also helps you win over your competitors’ customers.

8) Excellent customer service will make customers more tolerant

Only one in five customers is willing to overlook a bad experience if the company’s overall customer service is poor. Whereas, almost 80% will overlook a bad experience if the customer service team is considered very good.

Customer service is a key factor in your success. Say you provide an exceptional customer service experience overall. Then, chances are 78% of your customers will return to you even if you make a mistake.

9) Customer service contributes to revenue growth

Positive customer experiences directly impact your revenue and growth. If you prioritize better customer service, you can grow your revenue between 4% and 8% above the market.

Moreover, 89% of companies providing superior customer service perform more profitably than their competition.

Although more points can be added to the list, the nine above touch on the core of the matter. The bottom line is that customers will either choose to stay or run to a competitor, depending on the quality of customer service you provide.

Now that we’ve covered the reasons, let’s take a quick look at some of the types of customer service you can provide.

The 5 Types of Customer Service

Customer service is categorized in multiple ways. Sometimes it is categorized as reactive or proactive. Sometimes it is grouped under three broad headings: one-on-one, mass communication, and pre-recorded. But most of the time, the types of customer service are categorized by the support channel one chooses.

However, there are generally five types of customer service, which are:

1) One-on-one

One-on-one customer service is typically more personal and allows for direct contact with customers. A typical example of this is when customers go into your store and speak directly with someone who has the authority to help them. This is a lot quicker than calling over the phone to solve issues. 

2) Email

Email is a widespread way for customers to contact companies. Most people have email accounts, and customers can get in touch whenever they have a question. Email, today, is also the primary way through which companies usually assist their customers.

3) Messaging and chat

The majority of consumers prefer to communicate with brands through the same channels they communicate with family and friends. These include WhatsApp, Messenger, etc. 

Moreover, messaging is convenient, more personal and secure, and businesses prefer it for the same reasons. 

With the rise of messaging, chatbots and AI have also become increasingly popular. Using bots, you can provide 24/7 customer service and free your agents from simple and repetitive requests.

4) Phone

When it comes to resolving issues instantly, there is no substitute for a phone conversation. When customers call for assistance, agents can address complex issues more quickly and provide detailed assistance.

5) Self-service

One way of customer service is allowing customers to self-serve by way of an online community, help centre, portal, etc. By these ways you can simplify customer interactions, as well as improve efficiency and provide faster customer service.

Moreover, high-quality self-service will increase customer satisfaction, lower support costs, and make customer service reps more productive.

Overall, the fact of the matter is that you have to have a little bit of everything to provide the best customer service and experience.

Conclusion

It’s not enough that your product or service is great – if you want a lasting customer base, your offering has to be great AND your customer engagement should be impeccable. 

If a customer has a bad experience and no follow-up care, they’re unlikely to buy from you again. But say they call you with a question or concern and someone on the other end of the line is attentive and helpful. In this case, this customer service sets up an expectation for the next purchase. 

If you want your brand to be associated with positive experiences, invest in good customer service!

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