How Customer Service Affects the Success of an Organization

It is important for an organization to have effective customer service because it shows appreciation for the client by attending to his/her needs. A satisfied client will always come back for more business and will also refer other people. It, therefore, becomes imperative for organizations to always give good customer service in order to keep their present customers and attract new ones. In this article, RisePath shows you how customer service affects the success of an organization.

Good customer service can be the difference between a successful organization and one that fails. Having said this, it is obvious that good customer service is not only important but also essential in any business venture. 

Customer service is the provision of service to customers before, during and after a purchase. According to a research paper published in 2002, customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer’s expectation. The success of an organization can be greatly attributed to how effective its customer service is. It is seen as an important factor in how consumers perceive the quality and value of a product or service.

As organizations grow they need to continue to pay attention to their relationships with customers. This is because without customers there would be no sales and without sales, there would be no profits. When businesses are small, it is easy for senior managers to keep in close contact with their customers but as they grow this direct contact is lost. Then the organization can become impersonal and distant from its customers’ needs.

The key to great customer service lies in really understanding what the customer wants and then delivering it exactly as promised with no compromises. Organizations must have a deep understanding of both their products and services as well as the exact needs of their customers before they can deliver services that are satisfactory.

Customer Service is Important

• Good customer service builds loyalty and repeat business.
• Companies with good customer service are more successful than companies without it.
• Good customer service creates positive word of mouth.
• The most successful companies make customer service a priority. They know that happy customers are loyal customers who buy again and again. The best way for an organization to build its brand is through word of mouth from satisfied customers. Customers will tell others about their positive experiences with a company, creating more business for the company.

How good Customer Service is Important

Good customer service is the lifeblood of any business. You can offer promotions and slash prices to bring in as many new customers as you want, but unless you can get some of those customers to come back, your business won’t be profitable for long. Good customer service is all about bringing customers back. And about sending them away happy – happy enough to pass positive feedback about your business along to others, who may then try the product or service you offer for themselves and in their turn become repeat customers.

Customer service is important because customer service does more than simply provide a means to drive sales. It is also said that when companies commit to customer service, that raises the bar of competition.

1. Greatly reduce costs and increase profitability 

Customer service is important to an organization because it can greatly reduce costs and increase profitability. For example, if you offer great customer service and a competitor does not, then you will be able to charge more for your products or services and earn more business. Conversely, if both you and your competitor offer similar quality goods or services, but your customer service is lacking, then you may lose customers to your competitor due to their better customer service.

2. Easier and cheaper to keep existing customers happy

Good customer service is important as it’s easier and cheaper to keep existing customers happy than to keep finding new ones. Word of mouth is very powerful. People talk about good experiences they have as well as bad ones. So make sure they are talking about the good experiences they have with your business! A dissatisfied customer will tell between 9-15 people about their experience. Around 13% of dissatisfied customers tell more than 20 people. On the flip side, around 72% of people share their positive experiences with 6 or more people.

3. Bring customers back

Good customer service is all about bringing customers back. And about sending them away happy – happy enough to pass positive feedback about your business along to others, who may then try the product or service you offer for themselves and in their turn become repeat customers. 

Repeat customers are an excellent source of revenue for businesses. The most obvious reason for this is that it costs businesses less to retain existing customers than it does to recruit new ones. In fact, research suggests that increasing customer retention rates by 5% increases profits by 25% to 95%.

4. You can offer promotions and slash prices

You can offer promotions and slash prices to bring in as many new customers as you want, but unless you can get some of those customers to come back, your business won’t be profitable for long. Good customer service is all about bringing customers back. And about sending them away happy – happy enough to pass positive feedback about your business along to others, who may then try the product or service you offer for themselves and in their turn become repeat customers too.

5. A good attitude 

If a member of staff has a bad attitude it can affect the whole company. It is important that every member of staff should understand how their role fits into the overall aims of the company and believe in what they do.

Moreover, customer service has always been important. It is even more important today because of increased competition, increased customer expectations and the need to differentiate your product or service from others. The quality of customer service you provide will determine the number, frequency and value of transactions your customers perform with you.

Good customer service involves meeting and surpassing expectations. It means showing the customer how important he or she is to you and the business by interacting with him/or her in a friendly- helpful and positive way. Visit RisePath because they are providing good customer service and are working to bring customers back due to intangibles such as friendly service that they can’t get anywhere else, a friendly attitude that makes them feel welcome, or a comfortable atmosphere that no one else can provide.