For any thriving business out there, developing and selling a great product or service is only half the battle. Nowadays, providing your customers with first-class customer service and support is just as important.

Because, after all, shopping is as much of a monetary transaction as it’s an experience, and the entire eco cycle is closely correlated. By providing outstanding customer service experiences, your clients will associate that fantastic feeling with the transaction. They’ll then be more likely to come back and engage with your company again and again. In a nutshell, taking care of customers leads to more money, exponential growth, and sustainability.  

In this informative blog post, we’ll break down the key reasons why providing remarkable customer service is truly important and how it can further increase the revenue and success of your business. Did you know that 96% of all companies fail within ten years of their existence? Lousy customer service and evoking negative customer experiences are among the most significant contributing factors to failed businesses, and there’s no way around it.

Before we dive into the principal reasons why providing top-notch customer service is essential and how it correlates with business results, let’s quickly review what makes customer service exemplary.

What Is Good Customer Service?

Remarkable customer service and taking care of customers can effectively assist and empower your clients through the entire purchasing process and customer journeys. To figure out how to provide better service and earn customer respect, here are three questions whose answers can help you figure out whether you need to step up your customer service game.

     1.   How Can I better assist customers who are interested in purchasing some of my products or services?

Can you promptly provide accurate answers to your customers' questions and inquiries? If not, have you considered implementing customer service automation tools like Y Meadows' AI customer service automation solution to streamline the processes? Are your customer support agents adequately educated about your product offering? Can you provide deals or trials for customers who're "sitting on the fence"?

    2.   How can I better assist clients during the shopping process?

Is it pretty straightforward to submit an order to your business, and can you accommodate custom requests? Can your business effectively solve errors with orders? Can you provide your customers with order details like package tracking, for example?

     3.   How can I better assist customers after the purchase?

Are your customer service representatives able to easily and quickly resolve any issues with faulty products or errors in your service? How do you make it to the customers in such cases? Are you educating your clients on how to get the most value from your product? Do you reward your customers for their loyalty and repeat purchases?

As you can tell, good customer service is an easy yet complicated subject. Additionally, it varies from industry to industry and from business to business. What might be considered great customer service practice in one industry might not be helpful in another. Now, on to the main subject of this article, why is remarkable customer service so important anyway?

The Importance Of Service For Customer Satisfaction

Providing exceptional customer service is essential for every business because it helps organizations retain customers and extract more value from them. Besides, by delivering first-class customer service, companies recoup acquisition costs, cultivate a loyal following that refers customers, provide testimonials and reviews, and serve as case studies.

In other words, investing in customer service helps activate the company’s flywheel as loyal customers will allow you to acquire new ones, free of charge, by convincing prospects to engage with your business. Plus, their honest, positive testimonials and reviews will be more effective than any of your marketing efforts and cheaper, as well.

Here are the top reasons that speak volumes about the importance of service and why it’s worth investing in.

Retention Is Always Cheaper Than Acquisition

An increase in customer retention of merely 3% can equate to an increase in profit of 15%. This is because repeat clients are more likely to spend more on your business—67% more, to be exact—which results in having to spend less on operating costs.

Moreover, the customer acquisition cost, which is how much it costs to acquire a new customer, is more for a business that doesn’t invest a small percentage of its finances in customer service. Lastly, investing in modern customer service solutions like Y Meadows’ software that can help with ticketing resolution speed can help you decrease your churn rate, which reduces the amount you have to spend on getting new customers and drops the overall customer acquisition cost.

Customer Retention Correlates To Customer Satisfaction

Besides, customer retention carves the most straightforward route to business success. Keeping existing customers happy results in more stable revenue and more accurate forecasts. Once your company masters at not just attracting new customers but retaining the old ones, you will have a solid foundation for your entire organization.  

And how is taking care of customers important to retention? Well, 75% of customers say that they would return to a company with excellent service, as most consumers cite remarkable customer service as a reason for sticking with a particular company. Bottom line, your unique service or product may reel the customers in, but customer service is what keeps them returning for more.

Good Customer Service Grows Customer Lifetime Value

Customer lifetime value, or CLV, represents the total revenue you can expect from a single customer account throughout their lifetime. Consequently, growing this metric means that your customers are spending money with your business more frequently.

And investing in your customer service department is a fantastic way to improve the overall CLV of your customers. If customers have a good experience with your service and support teams, they’ll be more likely to come back and purchase again from your business. Or, at the very least, they’ll share their positive customer experience with others, which builds rapport with your customer base.

This makes potential customers more trustworthy of your business and allows you to cross-sell and upsell additional products or services with less friction. New customers will trust that your sales team is recommending products or services that truly fit their needs, creating a smoother customer experience for both customers and employees.

Customers Are Willing To Pay More To Businesses That Offer Better Customer Service

More than 50% of customers say that they increase their purchasing with a business after encountering a positive customer experience with that business. Moreover, 67% of customers state that they are ready to pay more in order to get a better customer service experience. Clearly, the importance of service means so much to customers that they would literally pay more to interact with a business that does it well.

These are factual statistics that can’t be and shouldn’t be ignored. In an era where companies are massively prioritizing customer service, any company that doesn’t do so is destined to crash and burn. Even a single customer experience influences today’s customers—one positive experience could be the deciding factor for them to stick to a company. In contrast, one negative one could send them in the opposite direction.

Content Customers Build A Better Reputation

Positive customer experiences lead to happy customers, and satisfied customers lead to a positive company reputation, leading to higher growth—easy as that. Reputation goes a long way in doing business. It attracts investors, partnerships, customers, and employees. So, if you want to improve your organization’s reputation, providing excellent customer service can be a good starting point.

Did you know that after encountering a positive customer experience, 69% of customers would recommend the company to others? Because, for customers overwhelmed with opinions, a recommendation from a friend often tips the scales.

Paid ads and viral social media campaigns have their place, but nothing beats the oldest trick in the book—content customers and free-of-charge word-of-mouth marketing.

Bottom Line

If you keep thinking about it, you will probably find a lot more ways in which fantastic customer service can snowball and have a significant impact on your company’s results and revenue. Nevertheless, now that you understand the effects of having good customer service, the next step is to figure out how to provide it. If you have difficulties where to start, we suggest you contact Y Meadows’ sales department and find out how artificial intelligence can help you enhance customer satisfaction and provide better service to your clients.