How to increase profits through better customer service.
"Customer service is not just a warm and fuzzy addition to your business practices, it's directly linked to your profitability and sales.
This is why it needs to be a priority and a focus for any business that wants to grow or even survive in a highly competitive future"
In recent years, we've seen huge growth in the use of live chat, messaging bots and online apps and software. As more and more organisations focus on customer self-help, it's all too easy for plain old-fashioned customer service to get pushed to the sidelines. In fact, many organisations are doing their best to eradicate the need for customer service staff entirely, in a bid to reduce labour costs and tighten up efficiencies.
While it certainly makes sense to equip customers with the tools they need to complete transactions at their own convenience, it's important this doesn't come at the cost of the personal touch. The reality is that the quality of your customer service has a bigger impact on your business bottom line than you probably think.
Why Customer service is so important
Here are three ways the quality of your customer service can directly impact your business profitability:
Great customer service differentiates you from the rest of the pack without cutting into your profit margins in the way that competing on price will. Customers these days enjoy a higher level of transparency than ever before, and they can compare and contrast products and services at the click of a button. Participating in a race to the bottom might lead to you getting a larger market share, but it will be at the expense of your profit margins, which could be damaging to your business over the long term.
If you offer good customer service you'll get far more in the way of repeat business and referrals than if your customer service is average. The cost of retaining existing customers is far lower than acquiring new ones, so you'll be able to increase your sales while keeping your marketing costs stable. Listening to your customers and building strong relationships with them will lead to greater loyalty and a dedicated base of repeat customers who will recommend you to others.
Your customer service team are there to help customers with any problems they have with using your self-help platform. Without the right customer support, your potential customer will probably just give up if and when they encounter a roadblock, resulting in the loss of a sale. If you have well trained customer service staff, they will be able to resolve any issues quickly and effectively, ensuring that the customer completes the sale and you don't lose out to your competitors.
So just how can you go about creating a better customer experience?
The good news is it's not difficult to improve your customer service and impress your customers.
Get in touch with your nearest RSM Business Advisor today!
At RSM we can help you ensure you provide exceptional customer service by offering our support and expertise in business.