Good customer service has quickly become a must-have feature for businesses not just in the UK, but worldwide and with the strain of the pandemic still being felt globally, businesses are having to work harder to stay afloat. Customer service is becoming a core focus not only for businesses but for consumers too.
Customers are moving away from focusing on the product or price and instead, are paying more attention to the service they receive throughout the buying process. But can customer service alone protect your business? We’re investigating, below.
Why Customer Service Is So Important
Research shows that it takes 12 positive reviews to recover the reputation lost from one bad one – with negative reviews holding that much power, it’s clear to see that you should want to make a good impression. 65% of customers have reported changing to different brands due to poor customer service, with only one in 5 consumers forgiving bad experiences at companies with poor customer service. For businesses, these numbers can be devastating and for that reason, good customer service is undeniably important.
Around 80% of consumers who have had a bad experience but were met with good customer service would still go back to the brand or business at a later time, and an incredible 68% of consumers reported being willing to pay more for products and services when good customer service was offered. For small businesses, this could make all the difference.
Unlike marketing, good customer service is something that most businesses can offer for free if done correctly and could see incredible results. Responding quickly to customer queries, offering good conflict or issue resolution and showcasing good communication within your company when needed are all simple things that can make the world of difference.
What Customer Service Can Do For Your Business
Putting in the effort with your customer service can have a huge impact on a number of aspects of your business and how customers interact with you. Some of the key benefits include:
- Retention – Customer loyalty can feel hard to come by, but customer service could be the answer to improving overall retention. Building trust between brand and consumer can take time but good customer service is the key to making customers want to build that trust. Consistently good service and a friendly, approachable attitude can really change the way customers view your business and give you a better chance at not only gaining customers but retaining them too.
- Increase Conversions – Every business wants to increase their revenue, with many companies measuring their success according to how many conversions they see at any one time. The art of triggering those conversions, however, is a delicate one but this is where customer service comes in. Customer service closely correlates with revenue, with research suggesting that around 84% of businesses that are working on their customer service have seen increases in conversions and overall revenue. Even the smallest improvements in customer service could make a difference in how customers interact with your business. A smile could be the difference between a positive experience with your brand and a negative one, and that’s just the basics! With a true customer service framework in place, your business could flourish in no time.
- Reducing Conflict – Every business has its difficult customers and no amount of positive customer service will get rid of them completely but it can certainly reduce the amount of conflict you or your employee’s experience. Honesty is the best policy in business and when it comes to customer complaints or conflict, it can often be beneficial to admit anywhere you may have fallen short and take a professional approach to resolve the issue. Acting as quickly as you can to stop complaints from escalating and in some cases, even encourage the customer to come back in the future.
- Improves Brand Reputation – When it comes to your business, your reputation matters. Reviews alone can have a huge effect on how customers see you and your products, and one negative review can cause just enough doubt to turn a customer away. Good customer service can reduce negative reviews, and you should also make sure you respond to any poor reviews as professionally as possible. Acknowledging the review and showing that you’re doing something to fix the customer’s issues can often override the effect of a negative review and bring back otherwise unsure customers. Similarly, word of mouth advertising is one of the most valuable and unbeatable methods out there. 90% of people will take the advice of their friends when making purchases and so making a good impression on every customer can really help spread the word and increase your customer base.
- Improves Employee Experiences – Your employees are the life of your business. Without them, the business likely wouldn’t run, and definitely not as well as it should. Good customer service protocols and training where possible can not only improve your customer’s experiences but your employees too. With reduced conflict, they are less likely to face problem customers and in general, are likely to be surrounded by more positive interactions and relationships. Good customer service should come from a place of respect that also is given to your employees too and, as a result, can reduce staff turnover.
Protecting Your Business
While good customer service can work wonders for improving revenue, customer retention and reducing conflict, you should still ensure that your business is protected against every possibility. Public Liability Insurance can ensure that your business and revenue are protected in the case of a third-party claim, offering financial support for compensation, legal fees and more. If a customer is injured at your place of work or their property is damaged as a result of your business activity, public liability insurance will protect you when it’s needed most.
For more information about insurance policies and how they can protect your business no matter which trade or industry you’re in, feel free to get in touch with Ashburnham Insurance on FREEPHONE 0800 1696137.