Why is Customer Service Important
Do you ever wonder, "Why is Customer Service Important?"
The answers to this question are many and multi-faceted so much that in any perspective, it gets easier to understand why it is very important. The lifeline of any business is its customers, because without them, the product or service remains unsold, production expenses remain unpaid and the pockets of those who should profit from it remain empty.
Say for example, there was a restaurant (business) that served great food. People naturally need to eat, and will always have the tendency to eat at a place that had great food. So, there is the business and there is the customer. What is then the need for customer service? Why is customer service important?
Everyone has been a customer once in their lifetime. When one is at that receiving end, you always feel like you want to be given the best, to be treated well and with respect, and to get the right value for your money. You have the money that they need, and with that comes the power to be treated and served right. That’s mostly what every customer feels. So when they think that an employee or a business treats them for less than how they should be treated, they know they can easily go and find a better place.
Make a Difference
Why is customer service important? Simply because, sometimes, it may spell the difference between getting that sale and losing it to the next competitor. There are times when you and your competitor sell practically the same excellent product or service, at nearly the same price. What can make a customer enter your door instead of theirs? Excellent customer service.
When you, as a business owner, and your employees treat your customers well, make them feel special, and manage to convince them that you offer the best value for their money, you are most likely to get that sale. When your business sells something similar to another competitor, but you serve your customers better, you are most likely to get a satisfied and loyal customer. And for the record, loyal and satisfied customers have been known to come back, and bring even more customers with them.
Statistics and Profitability
Why is customer service important? It is, because statistics say so. An article published last September, 2007 reported results from the US News and World Report. According to this report, the average American business loses 82% of its customers because of matters pertaining to customer service. The same report revealed that the Harvard Business Review found out that if a business can avoid losing 5% of its customers, the bottom line profit can increase by 25-95%. Customer service is important, because the amount of profit that a business earns depends much on it.
According to a Business Case Study published on The Times 100, gaining one new client costs the same as keeping 5 regular and existing customers happy. It is so evident that a business with high quality customer service is more likely to keep up the profits and even increase it, than one without. Instead of spending much on reeling in new customers, use that money to keep regular customers happy and earn 5 times more!
Effective & Free Advertising
We all know how powerful word-of-mouth advertising is. Most people will go to places recommended and will avoid places with bad reputation. The most effective way of gaining that popularity and having those mouths mentioning your business is by excellent customer service. When customers are treated right, they spread the word. That in itself is free and effective advertising.
So, "Why is customer service important"? Because it plays such a huge part in business. Customer satisfaction is imperative to the success of any business, and the one way road to achieving that is high caliber customer service.
Sam Walton, founder of the Wal-Mart empire, believed in this fact so much that he said the following words right on target:
"There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else."
Why is customer service important? Simply because it keeps the business alive.
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