All businesses unanimously agree on one thing – customers are kings. They’re the sole purpose and benefit of running a business. And hence this is one of the major reasons why good customer service is a pressing concern for all companies.
Good Customer Service is Directly Linked to Customer Satisfaction and Loyalty
Here are some reasons why focusing on providing good customer service is actually a good idea.
- Over 78% of people will refrain from completing a purchase in the case of bad customer experience. Only 4% of these dissatisfied clients will ever voice their concerns; 96% will say nothing and 91% of these will never come back to the business (HelpScout).
- Good customer service translates into higher customer retention and loyalty. There is 60-70% chance a business will be able to sell to an existing customer whereas, for new prospects, the probability is down to 5-20% only. In fact, over 80% of a company’s profits come from existing clients (SmallBizTrends).
- Loyal customers are likely to bring more business for a company. According to statistics, loyal customers are worth over ten times their first purchase, increasing a company’s profitability substantially over time. Also, it is seven times easier/cheaper to retain an existing customer rather than acquiring a new one in terms of marketing and other costs (BrandingStrategyInsider).
- Businesses in America (and all over the world) are likely to lose over 12% of their customers each year (SmallBizTrends).
- Customers talk. When a customer has a positive experience, s/he is likely to tell 6-7 (maximum 15) people about it. But when a customer has a negative experience, s/he is likely to tell over 24 people about it. Good customer service is therefore the key to promoting positive word of mouth (American Express).
- Since 96% of dissatisfied clients are unlikely to voice their concerns, it creates a gap in receiving constructive criticism, inhibiting company growth and improvement. Satisfied clients, on the other hand, are more likely to share their thoughts, views and opinions about company products and operations, enabling the company to grow exponentially.
This adequately sums up why delivering good customer service should be a priority for all businesses. However, since it is an extremely sensitive and specialized business function, it is not always plausible for businesses to set up their own customer service response segment.
Outsourcing Customer Service Response
Even though it may sound counterintuitive, outsourcing offers numerous benefits for the company. It does not only help in furthering business objectives but also ensures customer retention and loyalty is at an all-time high.
Here’s why you should consider outsourcing the customer service response segment of your company:
- Round-the-Clock Availability: It is virtually impossible for businesses to operate an in-house customer services department 24/7. The equation gets even more complicated when you include all online and offline resources. Outsourcing this department to a well-reputed agency means a representative is available all the time to respond to your clients as and when required.
- Cost Cutting: Organizations specializing in customer services employ the best resources for all their clients, dividing the total maintenance cost over more than one company. But if a business intends to do the same in-house, it is likely to incur extremely high costs, making the customer services segment highly unviable and unfeasible to operate.
- Increasing Operational Efficiencies: Outsourcing the customer services department actually helps in increasing operational efficiencies in other functions as there is less to worry about. The company receives processed information from the agency, hence being in a position to act immediately. With in-house departments, companies receive unprocessed data, thereby prolonging the feedback process.
- Getting Highly Skilled Talent: It is possible for agencies to hire top talent and still maintain low costs for companies because their total operational costs are being divided over multiple clients. For companies hoping to do the same in-house, it is next to impossible, especially on a limited budget.
- Core Business Values: When companies don’t have to worry about customer services, they can instead invest their efforts in improving operational efficiencies and their products, further core business objectives without compromising on good customer services.
- Satisfied Clients, High Revenue: As shown by statistics all over the world, good customer service is the key to customer satisfaction and loyalty, which in turn brings high revenues and profits for the company. Outsourcing makes sure your customer service is always regarded as “good” or “great” by all your clients.