This is a guest post by Michelle Strassburg
Having been in various managerial roles for the past ten years I am sometimes surprised by the poor customer service experience some brands are getting away with. Do they not understand that I might not come back? Yes, increasing the number of returning customers by providing top of the line customer service often has a price tag but when you understand the benefits of providing excellent customer service, this price tag seems reasonable.
The price tag which I am talking about could translate, dollar wise, into excellent staff training, improvements in your IT systems or even increasing the number of support personnel. Like most businesses looking to justify the expense you will first need to demonstrate the return on investment. Understanding the key benefits of increasing the number of returning customers is a good place to start.
- More bottom line revenue – While most organisations look at winning new customers as a means to increase revenue, a high level of returning customers could help achieve this goal.
- Assist in winning new customers – Other than sharing negative customer service experiences, customers also share positive ones. By increasing the number of satisfied customers, they will share their experience with others and contribute to winning new customers.
- Assist in sharing your marketing messages – The key to an organisation’s marketing success is getting the word out to as many potential customers as possible, at the right time and on budget. While some organisations may adopt a multi-channel marketing strategy to achieve this, others may depend heavily on their current customers to spread the word.
- A means to surface feedback – Returning customers are often very loyal and might take the time to share feedback about a service or product which could help improve it. But if feedback does not reach management level in time to make improvements, revenue could be lost.
- Boost staff motivation – A large percentage of returning and satisfied customers will help boost staff motivation as communications take a more positive tone. This has a roundabout effect as the highly motivated staff will work harder and more efficiently thereby increasing productivity.
- Indication of the overall health of an organisation – An organisation which is able to retain a high percentage of returning customers is likely to have a good service in place, indicating that overall health is good. On the other hand, a low number of returning customers might indicate a problem with the organisation’s offering and service.
What do you think are the key business benefits of improving customer service in your business?
This guest article was written by Michelle Strassburg. She is Head of Sales and Marketing at online hardwood flooring vendor, Wood and Beyond.
