15 Nov The Importance of Good Customer Service for Small Businesses

The importance of customer service should not be underestimated, particularly for small businesses. By providing top-notch customer service, your business can attract customers, retain customers, improve products/services, save and make more money, and stand out in the crowd.

Good customer service helps attract customers.

Many consumers (79%, actually, according to a study done by Salesforce in 2020) consider customer service when they are deciding whether or not to purchase something. So, your business’s customer service reputation will have an impact on the majority of potential customers when they are looking to make a purchase decision. The better and more personalized your customer service initiatives, the more customers you are likely to attract to your business.

Good customer service helps retain customers and build brand loyalty.

“Loyal customers are approximately four times more likely to buy from you than new customers.” They also tend to spend more money (67% more) than new customers AND are a great referral source. People who like a product or service will most likely tell their friends and family about it. “Referrals are the highest converting cohort for most businesses (66% of salespeople report that the highest quality leads come from existing customers), so having a steady flow of referrals is crucial to any small business trying to build up its client base.”

Customer retention statistics show that seven out of ten consumers have stopped using the services or products of a particular company after they’ve been provided poor customer service. So, maintaining good customer service practices is crucial to retaining your current customers.

Let’s face it: everyone makes mistakes. But you don’t want your customer base to jump ship when you inevitably make an error as a company. The good news is that you create brand loyalty if your company provides excellent customer service. 78% of consumers will do business with a company again after a mistake if that company’s customer service is excellent.

Good customer service helps you improve your product/service.

Customer service opens up a direct line of communication between the brand and the consumer. Those conversations can lead to helpful insights. For example, if customer after customer makes a complaint about having the same issue with a product, it creates awareness that it would be in the business’s best interest to seriously look into that complaint and make the necessary adjustments/improvements.

Customers may also offer suggestions for improvements that nobody at the small business had previously considered. They are, after all, the ones purchasing and using the business’s product or service on a regular basis.  Customers are, therefore, often in a position to make very relevant recommendations for improvements.

Good customer service has financial benefits.

Providing excellent customer service can both save and make money for a small business. Improving the customer experience can increase sales revenue by 2-7% and profitability by 1-2%. That’s significant growth, especially for a small business!

In the long run, it’s more profitable for a business to put dollars toward retaining existing customers through excellent customer service. You’ve probably heard of the 80/20 rule, which states that 20% of a given company’s customers are the source of 80% of the company’s profits.

As many as 86% of customers would pay more to get better service. Customer service statistics also indicate that consumers are willing to pay a premium of 13-18% more to feel they have treated themselves well and will receive top-notch customer service and experience. So, if you have great customer service, you may be able to charge more for your product/service, therefore increasing profitability.

Good customer service helps your business stand out.

As a small business, you want to stand out. Having a reputation for excellent customer service gives you a competitive advantage. By being branded as a company that offers exceptional service, customers will start to seek you out. This can be especially important if your market becomes oversaturated with businesses that are offering a product or service that is similar to yours. Being known as a business that offers the same great products and services but with the added benefit of excellent and personal customer service can help to be chosen over competitors.

Now that you understand the importance of good customer service, it’s time to think about office space for your small business. If you are looking for a new office space to lease, check out Prime Storage Commercial’s office listings. With various options, from small single rooms to large office suites and standalone buildings, Prime has many types of office spaces available to meet your needs.