General update by IBBZ Accounting on latest tax news, business growth and technology tips.
The services provided by your company to the customers before and after purchasing products or services is called customer service. Your customers can be new, potential or existing. If you want to grow your business, then customer service is the heart of your business irrespective of its size.
Customer service is more than just answering questions, phone calls, emails and attending number of customers. This includes how you interact with customers, resolve their issues and represent the company values, mission and reflect brand image of your business because good customer service generally leads to happy customers. Satisfied customers are willing to buy again from you and spread the goodness to family members, colleagues and friends. According to Hubspot 2018 research, 77% customers have shared their positive experience with others.
Let’s assume you have a burger shop outside a busy office complex, and you sell 100 burgers a day for $10 each. When a customer visits your shop, you greet them respectfully with a smile and understand how they want their burger to be, let them know how long they must wait if you have few customers in the queue. You can build trust and credibility by answering any questions of customers because you know burger inside out.
Imagine Michael buys 2 burger per week, 2x$10 = $20 for next 5 years, that means $5200 in total. On the positive side, you are working on increasing this customer’s lifetime value with your business and aiming for long term revenue. However, one day Michael experiences a bad service and decides to never visit buy burgers from you in future, then your business will face a loss of $5200 instantly because you were not aiming to sell just 2 burgers a week to him. This in turn can lead to bad reputation of your business in the market. At the same time, acquiring a new customer can cost 6 times higher than keeping existing customers (Bain & company research) and success of selling an existing customer is 60-70% (Invesp).