Startups usually operate on a low budget and there are several higher- priorities for funds to be allocated to. However, it is not a waste at all to invest your money in your customer service team.
Your customer service team is just as important as any other team, actually, it might be more important, after all, they are your representatives in front of your customers and they are the direct connection between your business and your customers. They help you retain customers and maintain their loyalty, and loyal customers will help you get new customers.
Still not convinced? explore the following list with us for a better understanding of why customer service is important.
1- Customer Retention Is Cheaper Than Customer Acquisition
5% more on customer retention can increase your business profit by 25% because a repeat customer is willing to spend 300% more than a new customer. On the other hand, unhappy customers are churning and your customer service team is a cheaper channel for happy customers and customer acquisitions.
2- Your Customer Service Team Represents Your Brand
You have created your business so you have a very good idea of what your brand represents, unlike your customers who make assumptions based on your social media and other factors including your customer service team.
Your customer service team interacts directly with your customers and they have the responsibility of representing your brand when interacting with current or potential buyers. Without them, you have no direct communication with your customers. So they can control those perceptions.
3- Happy Customers Is a Loyal Customer
Loyalty is rooted in trust, and customers can trust real-life humans more than the ideas and values of a brand. So, by interacting with your customer service team, those customers can build, hopefully, life-long relationships with your business. This might be your only competitive edge in the competitive market we are in.
The probability of selling to your old customers is 60-70% and they are willing to try your new product 50% more when compared to new customers while selling to a new prospect is 5-20% at best.
4- Customer Service Team Offers Important Insights About Customer Experience
How your customer perceives your brand is what really matters to survive in the market. Your customer service team can help you know how your customers perceive your brand. They can simply ask these questions while interacting with customers to provide helpful insights to improve how you run your business.
5- Customer Service Can Lead To More Revenue
As a startup, you may prioritize your budget decisions based on revenue and profitability, so let me give you great insight, businesses grow revenues between 4% and 8% above their market when they prioritize better customer service experiences. A positive customer experience has a direct impact on your revenue and growth.
Want to find out more about customer service stats and best practices for 2022? Check the HubSpot report from here. And remember to check instaDeel’s guide for the most important 5 customer service standards from here.
Let’s Grow… Big… Fast together.