Understanding the Impact of Great Customer Service on Your Business | Smart Money Match

Understanding the Impact of Great Customer Service on Your Business

Even the best products and services often have issues that need resolving. However, nothing frustrates customers more than encountering an issue and contacting a company’s customer service department, only to be put in queue for over ten minutes before a representative attends to them. This frustration amplifies when the customer service representative cannot adequately resolve their issues.


The days of businesses focusing on customers only until they purchase a product or service are long gone. Today’s business landscape requires businesses to offer excellent customer service. Otherwise, these organizations won’t last long in this fiercely competitive landscape.


The impact of great customer service on businesses cannot be overstated. After all, your company’s customer service team is the bridge between customers and your organization. If your customer service is poor, customers cannot directly communicate with your company. Eventually, customers will lose faith and trust in your company. As a result, their loyalty will wane, meaning they’ll buy fewer products and services and might switch to a competitor. Your revenue and profit will decline. Moreover, your company will acquire a negative reputation, leading to fewer referrals.


Thus, you must focus on building an excellent customer service team combined with an AI customer service coordinator to ensure smooth operations. If you’re still unsure about customer service’s impact on your business, this article will make you reconsider.

How Good Customer Service Helps Your Business

Here’s how good customer service helps your business:

1.      Customer Retention

Every business wants to acquire more customers. However, acquiring customers is costly. Companies try to reduce customer acquisition costs as they scale but also want to retain their existing customer base since they’ve spent considerable time and money acquiring them.


Good customer service may necessarily help you acquire more customers, but it’ll help you retain your existing customer base. Research shows getting a new customer can cost about five to seven times more than retaining an existing one, depending on your industry.


Retaining customers is essential because existing customers contribute a considerable percentage of sales. According to research, approximately 20 percent of your customers will contribute to 80 percent of your profits.


Therefore, you want to ensure your existing customers are satisfied. How can you accomplish that? By valuing their feedback and showing you care about them even after they’ve purchased your products or services. Hence, ensure your customer service also focuses on providing a stellar after-sales experience.

2.      Builds Customer Loyalty

Customer loyalty is important for any business because it means greater customer retention. In addition, it’s also vital because it ensures your customers won’t switch to another competitor. Org