Quality Customer Service Affects Your Company’s Retention Rate
0 min read
There’s no doubt that customer service is vital to any solid company. While acquiring new customers is important to growth, it’s retention that truly drives the revenue of a company.
Returning customers cost less to market to and spend more money, meaning they drive more revenue than first-time customers, while costing less. It’s a win win.
One of the driving factors behind retention is the service your company provides. Solid customer service goes a long way to increase customer retention thus a good customer service team should be the backbone of your retention strategies. Customer service is vital to retention for many reasons:
- If you don’t have good customer service, your retention rate will be dramatically lower. Although this may seem like an obvious point, it’s shocking how dramatically customer service can affect your business. Nearly 90% of consumers have stopped giving their business to a company after receiving poor customer service from them. Therefore you should train and put as many resources and as much time into making your customer rep team as strong and helpful as it can possibly be. If you don’t, you risk losing a good portion of your clients or customers.
- Losing a customer to bad customer service means giving them to someone else. When you lose a consumer due to poor customer service, you not only lose their service and loyalty, but your competitors will likely take them on. What’s interesting is that to customers, the value of a product isn’t even as important as the quality of service. A customer is four times more likely to switch to a competitor when the issue that they have is service-related, rather than product-related. That means that by exhibiting low quality customer service, you could essentially be handing your customers over to your competitors on a silver platter.
- our service means more to the reputation of your company than your actual products or services.70% of consumers’ satisfaction is based on the way they feel they were treated rather than the actual product or service performed. Take notes and adjust your customer service strategy accordingly.
- A lower retention rate could represent an even larger issue. It’s not only the customers who leave or complain who may have a problem with your company. Studies show that for every one of your customers that does complain about a product or service-related issue, there are 26 other unhappy ones who remain silent about their concerns. Odds are if those 26 customers keep receiving less than satisfactory customer service, they’ll probably leave before long if they don’t see a change in their service. That means that if you start to see your retention rate drop, it’s time to reevaluate and move quickly.
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So how do you go about practicing solid customer service? We offer loads of tips on enhancing your service team on our blog, but here are a few major pointers that every customer service team should practice:
- Begin with a strong start. Just like with most jobs, it’s all about the training you put into your team. Begin by hiring strong candidates that seem personable and good on their feet. Then, make sure you have a well-organized training process that is heavily based on role-playing, along with shadowing to give new hires real world experience before they jump in solo.
- Install a smooth call system. If you’re going to have designated teams to deal with different types of calls and issues, or if you’re going to rely on an automated service to direct your calls, you must make sure that it’s flawless. 26% of consumers report having been transferred from agent to agent without their problem being solved. Don’t let your agents fall into this same pattern. Establish a smooth caller system, with a clear definition of roles, departments and who owns which issues. There should never be more than one transfer per call.
- Get an attitude adjustment. If customer service is your priority, you need to make that clear. That means instilling the value of customer satisfaction into each and every rep on your team. It also means making it a policy to put the customer first. That goes beyond the classic “the customer is always right” saying. If someone is less than satisfied, go the extra mile to make sure they become pleasantly surprised with your company’s customer service. If your business makes a mistake, don’t just make up for the mistake, but give an extra service or bonus of some type to make it clear that your brand doesn’t consider a mistake the norm.
- Speed is everything. A speedy response could mean the difference between a satisfied customer and one who decides to leave your business. While the quality of your response matters, callers will quickly begin to lose sight of its value if it takes too long to reach them. Focus on enforcing efficiency and speed, both of which stem from knowledge and well-trained staff. No matter what the channel of communication, speed should always be a top priority whenever retention is at stake.
- Give out specials, surprises and thank yous. Never underestimate the value of a personal touch. That means addressing customers by their names, remembering personal details about them and maybe even writing a hand-written note now and then. You can also host contests and giveaways, not only for the purpose of acquisition, but also for your already existing customers, just to boost their brand loyalty. Sometimes some of the smallest touches can show your customers just how much they mean to you.
- Track and analyze your progress. Just because you think you have a strong system in place doesn’t necessarily mean you do. It’s always important to track and analyze your company’s customer service progress. You can do this by offering surveys to callers or even recording and analyzing calls at random. It’s often helpful to designate regular check-ins or reviews to help keep everyone on the team on track.
If your company is a customer-centric company, then following the tips above can go a long way to ensuring that your team is providing top notch customer service. Because in a cut-throat market, quality customer service can set you miles ahead of your competition.