When your tow truck annandale va business is on a low budget, there are probably different functions that make the highest priority when you are allocating funds. Your product team can use some financial assistance and marketing, to get your products or services in from of your prospects and customers. However, many might not find a reason at all to invest in customer service, and this is one of the biggest mistakes that should be avoided. Contrary to popular belief, your customer service team should be held with a lot of importance. It is as important as your other departments.
Customer service is very important to your business because it retains customers and extracts more value from them. If you can provide top notch customer service, a business stands to recoup customer acquisition costs and cultivate a loyal following. Investing in customer service helps in activating your flywheel of loyal customers as it will help you acquire new ones as well. With positive testimonials, your prospects can interact with your brand and your marketing efforts will be simplified.
Here are some of the reasons you need to invest in customer service
Customer retention is cheaper than customer acquisition
An increase in customer retention of merely 5 percent is enough to translate to an increase in profits for up to 25 percent. This is because repeat customers are more likely to spend more with your brand. They can spend 67 percent more, and this results in your business having to spend less in operating costs. What companies spend in acquiring new customers is more than what is required in maintaining existing ones. Ultimately, investing in customer service can decrease your churn rate and this decreases the amount you have to spend in acquiring new customers.
Customer service represents your brand image
You may have a good idea of what your brand represents. However, your customers will not get into your head and they will make assumptions based on your social media presence, content, advertisements and other external forms of marketing. Your customer service team is where you have control over any perception customers have for your business. These teams speak directly to your customers and have the responsibility of representing your brand when interacting with your current or potential buyers.
Happy customer service teams translate to happy customers
No employee is going to enjoy coming to work if they feel under appreciated. The same goes to customer service teams. About 87 percent of employees who are happy with their jobs are willing to work extremely hard for their business customers. 55 percent of employees who strongly disagree about being happy with their jobs will still work so hard for their customers. If you want your customers to give it all for your business, ensure you make them feel respected and appreciated. Only then will you find intrinsic motivation for doing a good job and serving customers the right way. Additionally, it has to be noted that happy customers will draw other new customers to your business.