Customer service is every interaction with your customer. With technology increasing opportunities for customers to get in touch, companies are now making progress by using technology and customer behavior studies to build more seamless, tailored and simpler customer service solutions.
From past to future
There’s a lot of talk about personalization and customer insight – that’s because it works. For businesses who seek to grow it is critical to understand the customer’s needs, which will allow the development of more tailored customer services.
The face of customer service has changed: digital prevails over real interaction, customers have more autonomy and control and help is proactive over reactive. This is how the customer service of the past stacks up against the future:
|Levers||The past||The future|
|Technology||Negatively impacts experience||Positively impacts experience|
|Support Hours||9*5, 5 days a week||24*7|
|Customer Interaction||Company is in control of when and where (or if at all) the interaction happens||Customer is in control of where the interaction happens (Social media, mobile, desktop, apps)|
|Volumes||High email volumes||High real-time volumes (phone/chat)|
|Experience||Customer repeats information on every interaction/channel||Company knows & stores information from every interaction/ channel|
|Online Help||Customer searches for content online||Content proactively reaches customer via signals/ triggers|
|Product fixes||Customer initiated||Product initiated|
|Agent infrastructure||Agent works in multiple systems||Multiple agents work through one system|
|Budget priority||No budget allocation for agent and operational resources||Dedicated branch with budget allocation (often from marketing)|
No matter the size of your business, good customer service needs to be at the heart of your business model if you wish to grow.
Although it can take extra resources, time and money, good customer service leads to customer satisfaction which keeps your customers loyal, generates positive word-of-mouth and encourages repeat business.
Client satisfaction also directly influences the working environment of business organizations. If your company develops a bad reputation, your top performers may be discouraged to stay, leading to increased attrition, mistakes and customer complaints.
The perks of good customer service
There are five customer support statistics to make customer service technology the priority of your business:
1. It’s what your customers remember
Bad customer service is a key driver of churn. Keeping your customer happy means that they are more likely to continue to back the brand and not shift to competitors. As customer retention is far cheaper than customer acquisition, this is a big plus point.
40% of customers begin purchasing from a competitor because of their reputation for great customer service (Zendesk). 82% felt that their service provider could have done something to prevent them from switching (Accenture).
2. Word-of-mouth advertising is the best kind of advertising that money can't buy
When your customers have a good experience, they talk about you to others. Unhappy and angry customers can generate damaging word of mouth, affecting profitability and reputation.
95% of customers share bad experiences with others 87% of customers share good experiences with others (Zendesk).
3. It’s a source of sustainable competitive advantage
Since customer service is often the only contact a customer has with a company, it can be the deciding factor for a customer to make a purchase. For example, it is difficult to tell the difference between two pharmacies, especially if their prices are similar. Putting extra efforts into customer service may be the differentiating factor for customers to go back to one shop over the other.
4. To customers, good service is more important than price
With excellent customer service seeming more and more rare these days, customers are willing to pay a premium for it. Deliver on that desire, and your customers will be happy to pay higher prices.
5. Good customer service reduces problems
Issues are always going to arise for any business, no matter how hard you try to avoid them. While you can’t run a perfect business, you can ensure that your customers are well-informed and looked after. If customers know that they can voice complaints and issues will be handled properly, they will feel more comfortable doing business with you.
73% of consumers say that friendly customer service reps can make them fall in love with a brand (RightNow).
Customer service can make or break a brand’s reputation, having knock-on consequences for staff satisfaction and your bottom line: so getting it right is of paramount importance.