How does investing in customer support impact

How does investing in customer support impact a company’s bottom line?

By now, everyone should realize that customer support is the backbone of every successful business. A customer experience is a combination of all the impressions a customer has of your organization during their buying journey. Every interaction with the company through various touchpoints and each individual perception builds a customer experience. It becomes a deciding factor of whether or not the customer will be willing to do business with you in the future.

This is why companies have entirely devoted themselves to not only persuading customers to do business but also guaranteeing them a pleasant experience every time they make a purchase. The better the customer experience, the more loyal customers will be to your business, making repeat purchases. Therefore, the power of investing in your company’s customer service should not be underestimated. 

Why is good customer service necessary for your business?

According to the studies, companies having good customer service grow revenue by 4% to 8% above their market. 

Let’s discuss this with an example; imagine purchasing a dress from an online store. Soon after the purchase, the seams of the dress came apart. You quickly contacted customer care to get the desired solution. 

There are two ways a company would respond:

One: The company’s support service is not up for any negotiation. The dress is a non-returnable and non-exchangeable product; hence, the support staff informs you that they couldn’t do anything about the issue. Where will this response inevitably lead? To a negative customer experience. Now you will be so frustrated that you will never do business with that company again.

Two: The support staff looks deeper into the situation and decides to provide an exchange at no additional cost to you with photo proof. In another case, they might give you a refund on that dress if you do not wish to get an exchange. 

The second case leads you to a satisfactory experience, and you will be more likely to do business with that company again in the future.

So, now we can answer the question, ‘Why is good customer service important for your business?’ 

  • Good customer service recognizes what customers are looking for and need. Therefore, providing customers with what they need will make them more likely to make repeat purchases with your business. 
  • Good customer service strengthens the customer’s trust and loyalty toward the business. It not only increases sales but also increases word-of-mouth marketing. 

Three ways good customer service improves your company’s bottom line

1. Word-of-mouth is the organic sales driver:

Word-of-mouth is a powerful sales driver for a company. In the above-discussed scenario, we’ve seen how taking care of your customer’s needs and providing them with precisely what they want can give them a satisfactory experience. Also, increasing the chances of them making a repeat purchase. A good customer experience can do wonders in many other ways. There are high chances that loyal customers would share their good experiences with their friends and family, hence recommending your product. 

How does investing in customer support impact a company’s bottom line? 1

2. Boosts engagement and customer loyalty:

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 According to recent studies, 96% of customers decide to stay loyal to a company based on the customer service experience. Customer loyalty and a good customer experience go beyond making a purchase. Earning a customer’s loyalty takes a series of fruitful interactions and satisfactory experiences. As for better engagement, sharing new rewards and exclusive advance information about the latest product with your customers can keep them engaged. 

3. Cross-selling potential:

Once the customer has made the purchase, the sales process is now in the hands of the customer support team. Not every contact with customer service will lead to cross-selling. Yet, the customer service representatives still need to have excellent social skills such as politeness, helpfulness, and great communication skills to make cross-selling possible. When such a moment arises at the support level, new packages, upgrades, complementing products, or warranty purchases can bring more sales opportunities. 

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Invest in customer service and build your brand

Excelling in customer service can help you win half the battle. In other words, companies can open the gates to increased sales and higher revenue by satisfying customers every time they interact. By now, business owners must know that investing in their customer support is the most crucial thing to do if they want to improve their company’s bottom line.