Through a series of articles, we will establish the state of customer service, to help you improve your customer service and turn it into a profit center. If you want to deliver a more intelligent customer service, there are 3 major points you have to consider:

  • The effects of customer service on your bottom line
  • The importance of customer acquisition VS. customer retention
  • How to leverage technology to deliver superior customer service

Today, we are going to focus on the effects of customer service on your bottom line, with their influence, the impact of the channels you are using and the importance of the quality of your customer relationship.

Let’s start right now with sentiment influence

Don’t miss a chance:

«It takes 12 positive experiences to make up for one unresolved negative experience» (Rudy Newell-Legner)
Everything depends on how you manage sentiment. Today, in the universe of communication and social media, the information is instantaneous, and in a world of immediate feedback, one customer interaction is no longer private. A negative experience has way more impact than a positive experience, and it is public right now.

sentiment influence customer service

Enhance reputation:

«News of bad customer services reaches more than twice as many ears as praise for a good service experience»
We all know it, bad news are travelling way faster.

Convert more customers:

«78% of consumers have bailed on a purchase that they intended to make because of poor customer service» (American Express Survey)
The customer experience you provide in your organization, in particular through customer service determines the customer purchasing and longevity. If the client bought in the past, he won’t buy anymore if the customer service is not up to the task.

Now, you have to know that not all channels are created equal, here is the proof:

Let’s take a look at the cost for every kind of service

– Field service at customer location: It is the method that costs the most  to your company because there is the need of a vehicle, transport time, appointment, organization of resources… But sometimes, the most expensive is necessary, and it may be convenient to go on site instead of having several intermediaries.

– Service at your retail location: These service centers are at predetermined location. It is up to the client to go there, but it requires mobilizing staff and equipment.

– Call center: There is no need to have multiple locations. Call centers are centralized, but this systems can only handle one client at a time by an employee.

– Interactive chat: You have the possibility to have several conversations at the same time. The advantage is that the access to the interactive chat comes from a relevant location on the website.

– Email: The cost depends on the customer’s problem.

– Social CRM, Blog: You answer to your customer’s needs by their favorite medium, and you can answer questions of a general nature to several clients at a time.

– Self-service: You give a tool to the client that allows him to solve the problem himself. It does not require any interaction, so this is cost effective.

Then of course, here is our analysis of convenience of those channels in comparison of the cost:

convenience channels customer service

– Field service at customer location: This is the least convenient for the customer because he must be present at his place on a fixed schedule.

– Service at your retail location: This is more convenient because the company does not need to schedule appointments on a fixed schedule but the client is obliged to move there, so the problem is not fixed instantly.

– Call center: Customers can call from anywhere, but people want less and less to communicate verbally. Moreover, the customer must wait to have the right person on the phone, and it can take time. We all had this experience where we had to wait a veryyy long time because the lines were saturated, and let’s face it, it’s never pleasant.

– Interactive chat: This is more convenient because chat buttons are often located where the client needs, so he doesn’t have to look for it very long and can solve his problem quickly.

– Email: It is convenient too because there is no need for interaction.

– Social CRM, Blog: The client is free to communicate what he wants where he wants, and on his favorite channel.

– Self-service: The client can solve easily his problem on his own and when he wants.

Conclusion: Technology affords you to provide the maximum convenience with the lowest cost. As you can see, the cheapest channels are usually the ones that your clients prefer.
Finally, let’s talk about the quality of customer relationship.
You have to consider your customer lifetime value

«On average, loyal customers are worth up to 10 times as much as their first purchase»
When we have the right sentiment, start a good relationship and when we are able to provide convenience, the result is a better client longevity and therefore a greater customer lifetime value. Some industries understood it well.
Let’s take the example of Banks: they are looking at what a customer can bring over time. Why do banks offer free student plans? Eventually, if they establish a good relationship with students, one day they will rent a house, buy a house, buy a car… The bank will be there and the former student will think about this bank first if he has been satisfied.
In general, if a customer is happy with a particular brand, and if he likes the way the produce is delivered to them, they will tend to stick with that brand.

 

⇒ In fact, considering your customer lifetime value can increase your profitability
increase profitability with customer service
  • By maximizing your customer satisfaction, you will maximize your profitability. Indeed, if you have managed to obtain a good sentiment from your customers, if you have a good relationship with them, and if it the way you deliver you service is convenient for them, your company will sell.
  • Satisfied customers recommend your products or services to potential customers, and this will give you the opportunity to repeat sales.
  • Be attentive to what customers are saying, identify the issues and adapt yourself: It is going to produce a positive sentiment.

And that’s it for today! In the next article, we’ll talk about the importance of Customer Acquisition VS. Customer Retention.

In the meantime, if you wanna know more, don’t hesitate to download our complete guide on customer service !