The ROI of Great Customer Service
If you read absolutely any business publication or any blog talking about business growth, management, or tactics, you’ll see one key fact repeated over and over again: You need great customer service.
Most businesses understand this in theory, but often struggle to prioritize exceptional customer service consistently because they’re trying to manage so many other things. Marketing, sales, vendor relations, employee satisfaction, product quality, and even money management all sometimes end up coming first.
In this post, we’re going to talk about why you should be investing more in customer support. We’ll look at the ROI of great customer service, discuss why revenue and customer service are so closely connected, and focus on some key ways to increase both ROI and customer service fast.
Why Customer Service is Directly Tied to Higher Profit
Competition is great for consumers. It’s not always so great for businesses, who end up struggling to stand out from their competitors who may be offering similar or even the same products. Customer service, therefore, becomes the differentiator.
As consumers, we’ve all been burned by poor service. Because of that, we will absolutely spend more and stick around longer for businesses with great customer service — and we’ll flee immediately if we’re frustrated with our experience.
That’s why customers are specifically looking for businesses with high-quality customer support. If you take a look at Google My Business and read any reviews, you’ll see customer service mentioned just as much as (if not more than) the quality of the product or service itself. It actually factors into their buying decisions, and it becomes a primary factor in who they choose to purchase from. As a result, customers are willing to spend more on the same products from a business that has superior service.
What Is the ROI of Great Customer Service?
We’ve talked about the theory of why great customer service is so important, so now let’s take a hard look at some of the data that proves it.
- Some consumers are willing to spend up to 17% more on average with businesses that have strong customer service. If your service is good enough, you can charge more, increasing profit.
- Millennials will pay about 21% more on average to purchase from brands with strong customer service.
- Great customer service that “rescues” a negative customer experience can convince 70% of previously unhappy clients to do business with them again.
- 96% of consumers say that customer service is a crucial influential factor in their buying decisions and in their loyalty to a brand.
- 93% of consumers are more likely to purchase repeatedly from businesses that have great customer service.
When you’re able to increase your retention rates, repair relationships with unhappy customers, and actively attract new customers because of your customer service, that’s worth investing in. Add on the fact that you can actually charge upwards of 20% more for your products because of great service and it’s easy to see why you should be investing in it.
How to Improve ROI & Customer Service Quickly
If you want to improve the quality of your customer service for fast-acting ROI improvements, there are a few steps you can take that can make a big difference quickly:
Review your business’s policies.
Do you have hard, strict customer service policies that maybe could have a little leeway? Remember, sometimes it’s better to take a slight hit on immediate profit if it means more ROI long-term from a happy customer. See if there are things that can be changed to offer better customer support, even if it’s something like free returns instead of requiring the customer to pay.
Invest in great training for your customer support team.
Your team should have training so that they’re able to handle most situations on their own, addressing each customer’s concerns thoroughly and in a personalized way. Take time to train them, and regularly invest in their education.
Expand your support team if needed.
There’s a solid chance that your business may not even have enough team members on hand to be able to truly deliver great customer service. If they’re scrambling from email to email and phone call to phone call, customers will pick up on the fact that they’re rushed. This comes across as not caring, and often the service isn’t as good.
If you need to expand your team, do so. And if you’re unable to afford more in-office employees, remember that answering services like PATLive offer affordable, high-quality customer support that’s available round the clock (even on holidays!). Your customers will never be left waiting.
Offer multi-channel customer support.
Be where your customers are. Have strong phone lines ready to help callers, but also have team members reading emails, live chat messages, and private messages on social media.
Investing more into your customer service is an outstanding way to increase your ROI very quickly, and this is one of the most foolproof ways to do it. Customers will absolutely respond to being treated like they matter, and the increased loyalty, retention rates, and reviews you’ll see may astound you.
If you’re unsure where you stand in offering support, send out anonymous surveys to your customers. Ask them how they feel your support has been, and where (if anywhere) there is room for improvement. Take this feedback seriously, and try to act on it as soon as possible. Your revenue will absolutely benefit as a result.