Reasons why you should implement Customer Service in your company | SEIDOR
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March 06, 2023

Reasons why you should implement Customer Service in your company

"The customer is always right". This mantra, regardless of whether it is always true or not, invites all companies to improve customer satisfaction. This can be achieved with Customer Service.

In fact, good customer service has a direct impact on any business and is a key way to improve the customer experience (CX). And it is something that concerns all types of companies, regardless of their size or sector of activity.

What is Customer Service?

Before explaining the reasons why your company should implement this resource, let's define what we are talking about when we mention Customer Service.

Customer service is the direct connection between customers and your company. Its missions are to retain and give them more value, so that they feel comfortable being customers of our products and services. Although offering a customer service may involve an outlay of money, this should always be seen as an investment and not as an expense, since, well served and offered, this service allows you to recover costs and reduce customer acquisition costs. A satisfied customer is not only more likely to repeat purchase, but will also recommend our company to other new customers.

Reasons to opt for Customer Service

So, having a customer support service can have a number of advantages. Here are some of the reasons why your company should implement one:

  • Improve customer experience. Resolving queries and incidents in a short period of time and with a positive attitude leads to satisfied customers and a higher likelihood of repeat 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 acquiring new customers. It is estimated that 65% of sales are made by repeat customers.
  • Reduce the churn rate. Customer churn rate, also known as attrition or abandonment 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.
  • Increased value per customer. Lifetime customer value (CLV) is the amount of revenue you can expect from a customer during the period you serve them. An increasing CLV means that your customers spend more money each time they place an order.
  • Higher conversion rate. A higher conversion rate usually translates into more sales and more revenue. Customer service keeps the flywheel moving, just like marketing and sales.

Benefits beyond the customer

Of course, from the customer's point of view, having a Customer Service provides us with several competitive advantages. But, in addition, the benefits of this customer service centre go beyond that and affect the entire organisation.

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

  • Improving profitability. Purchasing decisions often depend on the previous experience we have. If we offer good customer service, we have a better chance that they will buy from us and that they will do so 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.
  • Retaining and attracting talent. By improving the brand image, employees feel proud to belong to our company and it is easier for us to attract new talent.
  • Improved products and services. With customer service we can better detect what are the main complaints of our customers, which will allow us to improve the development and manufacture of our products and services.
  • Attract suppliers. With a good reputation and image, other companies will also want to work with you, being your suppliers.

How to implement Customer Service

Given the enormous benefits of customer service, it is time 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 make a clear policy with the guidelines for this Customer Service.

Remember, moreover, that although you have a dedicated staff to perform these tasks, all your employees can be the first line of contact with the customer, so everyone must be prepared and trained to provide the best customer service to your customers.

Let us know if you have any questions. SEIDOR Portugal will be happy to help!

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