Reasons why you should implement Customer Service in your company

What is Customer Service

Before explaining the reasons why your company should implement this resource, we will explain what we mean when we talk about Customer Service.

Customer service is the direct connection between customers and your company. Their missions are to retain and give them more value, so that they feel comfortable as customers of our products and services. Although offering customer service can result in additional expenditure, this must always be seen as an investment and not as an expense, since, when it is well served and offered, this service allows us to recover costs and reduce customer acquisition costs. A satisfied customer is not only more likely to make a repeat purchase, but will also recommend our company to other new customers.

Reasons for opting for Customer Service

Therefore, having customer service can offer several advantages. These are some of the reasons why your company should implement one:

• Improving the customer experience. The resolution of queries and incidents in a short period of time and with a positive attitude means that customers are satisfied and more likely to repeat the experience.
• Customer retention. As we have seen, providing good support and service builds customer loyalty and retention, which is always more cost-effective and profitable than attracting new ones. It is estimated that 65% of sales are made by repeat customers.
• Reducing customer churn rate. Customer churn rate, also known as attrition or churn rate, is the percentage of customers who abandon their subscription (to a product or service) within a given period of time. With good customer service, this rate is reduced.
• Greater value per customer. Customer lifetime value (LTV) is the amount of revenue you can expect from a customer during the period in which the service is provided. A growing LTV means that your customers spend more money each time they place an order.
• Higher conversion rate. A higher conversion rate is usually translated into more sales and more income. Customer service keeps the steering wheel moving, as well as marketing and sales.

Benefits beyond customers

Naturally, having Customer Service gives us several competitive advantages from the customer point of view. But, moreover, the benefits of this customer service centre go further and affect the entire organisation.

Some of the advantages we can experience when having a good Customer Service are:

• Improved profitability. Purchasing decisions often depend on our previous experience. If we provide good customer service, we have a better chance that customers will buy from us and that they will buy from us more often.
• Improved brand image. When our company provides good customer service and our customers recommend us to other users, the brand image of our company improves.
• Talent retention and recruitment. By improving the brand image, employees feel proud to belong to our company and it is easier for us to attract new talent.
• Improvement of products and services. With customer service we can better detect what our customers' main complaints are, which will allow us to improve the development and manufacturing of our products and services.
• Attracting suppliers. With a good reputation and image, other companies will also want to work with you as a supplier.

How to implement Customer Service

Given the enormous benefits of customer service, it is time for you to implement it in your company.

Although there are many technologies at your disposal, the first thing to do is to take into account what your customers' needs are in relation to your products and services and to make a clear policy with the guidelines for this Customer Service.

Remember, too, that although you may have dedicated staff to do these tasks, all your employees may be the first line of contact with the customer, so they must all be prepared and trained to provide the best customer service.