11 Effective Reasons Businesses Need to Prioritize Customer Service


Ruchi Gohri
By Ruchi Gohri | Last Updated on October 7th, 2020 1:00 pm | 5-min read
Appy Pie - 11 Reasons Why Customer Service is Important for Your Business

Customer Service is a provision of service that you offer to your customers, both before and after they purchase your products or services. Good customer service helps them have an enjoyable and easy user experience with your brand. It is an act of taking care of your customer’s needs by offering them helpful, professional, and high-quality service.

Major characteristics of good customer service include

  • Politeness
  • Promptness
  • Professionalism
  • Personalization

To offer better customer service you should be able to assist and provide accurate answers to the queries of the customers who are interested in buying your product or service. Excellent customer service is a simple yet complex subject that varies from industry to industry.

Appy Pie - 11 Reasons Why Customer Service is Important for Your Business

In this article, we will talk about the reasons why customer service is important for your business and how essential it is to improve your relationships with your customers.

Why is Customer Service Important?

Good customer service is critical as it helps businesses retain customers and extract more value from them. By providing excellent customer service, businesses recover customer acquisition costs and nurture a loyal following that raises the database, serves them as case studies, and offers reviews and testimonials.

Here are a few more reasons why great customer service is important for your business and why you should invest more in your customer service team.

  1. Revenue Increases with Good Customer Service
  2. Good customer service drives revenue which dictates all the major business decisions. Businesses measure success or failure based on income minus expenditure. Profitability is king, whether it happens on the very first day of the business or later.

    As per a recent study, 84% of the companies working to enhance customer service have reported an increase in revenue. In other words, prioritizing great customer service in the business increases revenue.

    Appy Pie - 11 Reasons Why Customer Service is Important for Your Business

  3. Good Customer Service Enhances your Brand Image
  4. Your social media presence, content, advertisements, and your marketing strategy help customers understand what your brand represents. Great customer service, however, establishes a strong connection with your customers, and your customer service team has a responsibility to serve your customers better and represent your brand to them.

    Without a well-trained and qualified customer service team, you can’t make the communication between your brand and your customers work. Your customer support team helps you influence customers and convey to them what you want your brand image to be.

  5. Employee Happiness Correlates to Customer Happiness
  6. Make your employees happy and they will keep your customers happy. Whether the business is large or small, employee happiness goes beyond a paycheck. As per a recent study, highly engaged employees gain a 10% increase in customer ratings.

    Appy Pie - 11 Reasons Why Customer Service is Important for Your Business

    Try to create a strategic company where employees every day come up with new ways to make your customers happy. Always encourage your team and give them a chance to be a part of something larger than themselves. Explain to them how much every customer’s experience depends on their work. Give them a purpose that motivates them far longer than free food ever could.

  7. Happy Customers will Refer Others
  8. If your customers are happy, they are more likely refer to other customers. They will share this goodness with their family, friends, and coworkers. As per a recent study, 77% of happy customers have spread their positive brand experiences with others.

    Even if you have a good customer service experience, you will also share it with your friends or family over dinner that night. It’s a fact that you let your loved ones know and want them to commit to a brand that you trust.

    Appy Pie - 11 Reasons Why Customer Service is Important for Your Business

    It works like a chain reaction, if your customer service team is happy, they’ll work hard to please your customers and satisfy their expectations. These happy customers become the cheapest form of word-of-mouth advertising for your brand, if you give them a reason to be one.

  9. Improved Customer Sentiment strengthens Company Culture
  10. All your teams follow suit and help each other when you create a culture of serving people. All the employees including engineers, customer and product support, sales team, etc. work together with compassion, kindness, and, above all, respect.

    ‘Company Culture’ refers to something that has been around forever. Many organizations write it on the office walls to make their employees memorize it. It is not essential to describe your company culture in this way; it exists whether you define it or not.

  11. Business Longevity Relies on Satisfied Customers
  12. When starting a new company, business owners take a huge risk. To minimize losses and keep up the momentum, they scale start-ups by offering a great customer service experience. If they have satisfied customers, their customer base will surely increase and they will always stay a step ahead of their competitors.

    Businesses with happy customers have a safe and long run as their customers act like an asset for them and indirectly start promoting their products in their friends, family and other related people.

    As per a recent study, 50% fail by their fifth year, and 20% of small businesses fail in their first year. A few major reasons for this failure are lack of funds, inability to sustainably scale, and misunderstanding of market value.

  13. Valued Customer Service Unites Processes and Goals
  14. Top-notch customer service creates a common goal for everyone in the organization which streamlines the entire workforce. You can direct the ultimate importance towards the customer and then align each department of your business behind customer service.

    Appy Pie - 11 Reasons Why Customer Service is Important for Your Business

    Make sure this teamwork spans for a long-term and sets a larger goal of improving customer experience-based metric, like NPS. Further, you can put the whole responsibility of moving the needle on these departments. This will help you have more streamlined processes, happier customers, and easily hit your KPIs.

  15. Brand Awareness Grows with Positive Customer Experiences
  16. Businesses that promote their brands right and have the best brand awareness get all the fame and fortune. Optimistic customer experiences play a critical role in increasing brand awareness, as they usually lead to ‘word-of-mouth’ advertising.

    Appy Pie - 11 Reasons Why Customer Service is Important for Your Business

    Businesses that offer a positive experience for their existing customers watch them rave about their brand. You can track customer awareness from online reviews to recommendation potential to social media sentiment. Creating a brand awareness strategy for customer loyalty can lead to substantial and authentic growth.

  17. Customers Trust Companies that Offer Better Customer Service More
  18. Good customer service matters a lot to customers that they would pay even more to interact with a brand that offers the same. As per a recent study, 86% of customers are ready to pay around 25% more to experience better customer service and 50% of customers start buying more with a brand after a great customer service experience.

    These statistics can’t be ignored. In the times when businesses are prioritizing customer service, any business that doesn’t do it well will crash and burn. Various customers get influenced and stick to the brand by even a single positive experience, whereas a single negative one can make them run to a competitor.

  19. Proactive Customer Service Creates Marketing Opportunities
  20. Positive customer service is not just for customer delight. It also affects the marketing strategy that you use to promote your brand and its products. This is one of the cost-effective ways that you can consider adopting and investing in your business.

    Instead of waiting for the customers to report a specific issue, fix it, and approach them before they even know that issue ever existed. In this way, customers will come to know that you value them and ensure a better user experience.

  21. Great Customer Service is a Competitive Advantage
  22. Every business wants to stand out and no business endeavors to be the ‘second-best’ at anything. You want to become better than your competitors and want your customers to know that. That is how you keep them loyal and stay connected with your brand.

    Offering excellent customer service can be an excellent differentiator. As per a recent study, 60% of customers don’t want to go with the brand after one negative service experience which means you need to provide good customer service to retain your customers and to acquire your competitors.

    Hopefully, this list has helped you understand the importance of customer service. With the help of these insights, you will try your best to deliver excellent customer service that will not only help you retain your customers but will help you acquire your competitors’ as well.

Conclusion

After going through all these reasons, it will be difficult for you to deny the fact that a well-trained and positive customer support team can help you make your company the best version of itself. The ability of your team directly interacts with your customers and can grow your customer base and revolutionize your business.

You can also go for Appy Pie’s Helpdesk Software – Appy Pie Desk to resolve your customers’ issues in no time and make your business more productive.

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Ruchi Gohri
About The Author

Ruchi Gohri, content writer at Appy Pie, has penchant for writing. With over 4 years of experience, she plays around with words elegantly, crafting simple content for all to read. In her free time, she loves her couch either to read or catch on her sleep.

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