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8 Benefits of Customer Service to Businesses

Marketers and companies at large leverage benefits of customer service. Marketers try as much as possible to evaluate what customers’ expectations are. They suggest this information to a company’s executive and, in response, better development of products and services that meet these customer expectations hence their satisfaction.

Benefits of Customer Service

1. Collection of more genuine customer feedback

Customers who are happy with the services will be genuine when giving feedback. They will highlight how support services worked for them and what needs to be improved. A company uses this genuine customer feedback to modify customer service delivery approaches.

This customer contribution in modifying customer care services shapes support services exactly how customers wish. In the long run, proficiency is attained in handling a customer or a market segment.

2. Higher employee motivation

Employees like getting acknowledgment from customers. A customer will only acknowledge an employee if they serve them well. If a customer is not served as per their expectations, they will not be appreciative. This creates a win-to-win scenario for both customers and employees.

Employees want good ratings from customers. On the other hand, customers want to enjoy exceptional interaction with staff in the purchase process. A staff who helps a customer figure out what they want to get acknowledged. This motivates them at work to engage with more clients and deliver more value.

3. Easy market penetration

A company with quality customer service succeeds in market penetration. This takes two perspectives. One, it is easy for new products/services of such a company to penetrate in existing market share. Consumers of existing products or services of such a company are quick to try a new product when introduced into the market.

The second perspective is on the penetration into a new market. When a company extends quality customer service, it enjoys publicity beyond the market it operates, for instance, overseas. Potential customers in an oversea market try out products or services from such companies when made available in their local market. Quality customer service propels success and better traction while penetrating international markets.

4. Better exercise of CSR

Customer services as an indirect engagement in CSR should be noticed. Customer service is not necessarily during a purchase. Customer services include but are not limited to after-sales services, educating customers, and even rewarding them. These indirect exercises of corporate social responsibility contribute positively to a company’s reputation.

5. Increases customer referrals

Communicating directly to every potential customer would take more time and resources. Marketers rely upon the customer to do indirect marketing. This helps marketers reach customers that running marketing campaigns cannot reach.

Customers do not hesitate to share their experiences with friends who intend to execute similar purchases when they enjoyed good customer service. A customer will likely recommend a friend to try a product or a service from a specific company where their expectations were met.

These customers who come to buy from their expectations of friends’ experience are referred to as referral customers. If referral customers are satisfied, they will refer others to buy from a company, and in the long run, the market share for a company will steadily increase.

6. Increases loyalty of customers

When customers’ expectations have been met, they will surely return. Good customer services enhance satisfaction creating an emotional connection between a product and a customer. Thus, a customer is less likely to be promoted to try options. They will remain loyal to consume from a company where they are assured that their expectations will be met or exceeded.

A loyal customer base contributes a lot to a company’s profitability. It becomes easy to project future earnings from loyal and new customers. Thus, future company growth is more defined, and a company has more control over it.

7. Reduced customer complaints

A company will never sell default products to customers with full knowledge of repercussions. Companies will try to solve customers’ complaints as soon as possible. This is to avoid negative viral publicity or losing customers to competitors.

By meeting the expectation of customers, there is less to complain about. Companies remain committed to educating customers on how to use and maintain a product to reduce cases of breakdown. It becomes the customer’s responsibility to observe a product’s maintenance to avoid possible faults.

Reducing customer complaints gives the customer care team a simple time to advance a company’s good image. It reduces instances of dealing with a tempered customer expressing their dissatisfaction.

8. Improves company reputation

A product with fewer people complaining will automatically be perceived as reliable. Without direct marketing, people will likely develop the urge to try out such a product. More and more customers will attribute these fewer complaints to good customer service of overall product reliability and quality.

A positive image of a company is shared among consumers. Attempts of marketers to promote a product or service are met by the ready customers. These customers express their willingness and ability to buy, thus increasing profitability for a company.

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