With every field of business getting increasingly more competitive, focusing entirely on advertising tools to attract customers has become ineffective. Customer service is often the only way for a company to differentiate itself from its competitors and increase revenue. By investing in customer relations management, it is possible not only to attract new customers, but also to raise the loyalty of existing clients.
Quality customer service is not only about how you communicate with your customers. It includes many aspects of daily business operations, including proper information on products or services on your website, effective face-to-face communications, satisfactory telephone service, processing of clients’ orders, reaction to negative feedback and many other important details.
Superior customer service can help your business grow by increasing the number of customers attracted by favorable word-of-mouth marketing, increasing the investments per purchase spent by each customer, and increasing the number of times your customers buy from your business.
Let’s look at the key benefits that high-quality services should include:
Stronger Customer Loyalty
If you do not regularly collect and analyze your customer’s feedback, there is no better time to start than now. Collecting customer feedback will help you bring changes into your business and help increase the customer satisfaction from the products or services that you deliver. The necessary information from each customer is useful in providing clients with a more individualized approach. The advantage of investing in the collection of constant feedback and analysis will exceed the cost and become helpful in guiding an organization’s efforts to improve customer satisfaction. Many businesses use CRM software for tracking customer data and the entire history of customer relations. Knowing the data of each client is crucial for the sales team to create up-selling strategies in dealing with the current customers.
Related Article: 5 Keys to Improving Customer Satisfaction and Loyalty
Reduced Marketing Costs
Through customer relations management, business owners have a chance to interact more efficiently with their customers. Likewise, by using CRM, you can also engage in good customer service that will increase customer satisfaction, favorably affecting the profitability of your business. Businesses facing increased levels of variety in their customer’s buying preferences need to find out how their customers bring value to the company in order to maintain a valuable proposition.
Every marketing message you deliver to your customers should have a large impact on them. In short, it’s about promising something and delivering or over-delivering it. For example, when Zappos promises shipping within five business days, the company manages to ship all orders overnight to meet or even exceed customer expectations. To surpass such expectations, you need relevant data about your consumers across all communication channels you use.
Proper customer relations management can be a very effective retention tactic that can help you increase the efficiency of marketing activities and reduce costs. For example, in a case where a customer has just made their first purchase, you can easily plan follow up activities with a welcome email or cross sell suggestion, or react to specific events, such as a customer’s birthday, abandoned checkouts and so on.
Improved Market Position
A study by University of Michigan’s Professor Claes Fornell shows a link between customer satisfaction and financial growth. Market share and customer satisfaction are connected in many cases. Improving customer satisfaction increases the profitability of a company, which in turn can enlarge a company’s market share. The results from the study demonstrated that the companies performing high-level customer-satisfaction actions not only produced higher stock returns, but also had less volatile stock values and cash flows.
To ensure you meet the requirements of your relevant target groups, you should constantly distribute your audience accordingly and analyze the customer data. This will result in greater customer retention and increased satisfaction.
Quality customer experiences add up to businesses and create a contrast for companies. Agile approach to customer support and proactive actions to satisfy customers will help you achieve a high level of customer loyalty, creating a point of differentiation. Take inspiration from the advice mentioned above to start implementing service strategies that will improve customer satisfaction.
Author: Jane Quinn is a marketing manager at Creatio, a world-class vendor of process-driven CRM for marketing, sales and service.