5 reasons good customer service is important for your business growth

Businesses that provide positive experiences for customers can dramatically impact their growth. But often, customer service takes a back seat to the daily demands of running a business and most times it hurts the growth of the business.

Provision of value – businesses with great customer service focus on treating customers well, providing them with what they need as long as it is in line with what service the business is offering, and if possible exceeding their expectations. This approach helps businesses engage customers and build strong relationships.

Retain customers – Keeping loyal customers is way less expensive than getting new ones. Research shows that it costs about six to seven times more to attract new customers than to retain existing business.

Satisfied customers become devoted buyers when a business is trustworthy. Research shows there is 60 to 70 percent likelihood that existing customers will return to make new purchases.

Create endorsements – Loyal customers provide positive endorsements and online reviews that can help businesses strengthen their brand.

A loyal customer on average is 10 times more valuable than their first purchase. Research shows that people often make purchasing decisions based on recommendations from family and friends, rather than on advertising messages. Ninety-seven percent of customers will tell others about very good or excellent customer service experiences. 70 percent would spend more money with a company that has excellent customer service. 24 percent will return to businesses two or more years after a good customer service experience. 59 percent would try a new company to receive better customer service.

Prevent business failure – About 90 percent of businesses close their doors within 10 years. One of the contributing problems is poor customer service. Buyers become frustrated over small problems that are not addressed, such as unclear communication, slow follow up on questions, or ignored requests.

Reduce employee turnover – Employees want to work for businesses that appreciate worker contributions, encourage new ideas and treat customers fairly.

When people work for an employer that provides excellent customer service, they are more engaged in their work and become an advocate for the business. They are more willing to stick with the company through business challenges and economic changes.