Customers Are A Company’s Most Important Asset
Macondo Networks prides itself on providing excellent customer service. Its main focus is knowing its customers, their likes and dislikes, as well as being proactive. Follow-up emails and/or telephone calls are commonplace as are notifications regarding new relevant products and/or services. Listening and anticipating a customer’s needs is also paramount. At Macondo, there’s no substitute for knowledgeable, human service and here’s why.
An investment in customer service is an investment in your business. Let’s face it, without customers, you have no business. So, how do you obtain and retain customers? The answer is relatively simple – excellent customer service.
If you want to keep your business on sound footing, your current clients will be your biggest asset. It’s those customers that continue to come back for products/services that help your business remain stable and grow. In fact, those customers should become part of your long-term business strategy.
There are several reasons why customer service is so important.
1.Customer retention is less costly than new customer acquisition.
A 5% increase in the customer-retention rate can result in a 25% to 95% increase in profits, according to a research study conducted by Bain & Company.
Another staggering statistic indicates that it costs anywhere from 5 to 25 times more to acquire a new customer than to keep an already existing one (Harvard Business Review).
Consider the amount of time, money and energy you invest to bring on a new client. An existing, loyal customer is easier and less expensive to sell to than someone that has no experience with your company. So, the message is clear, do whatever it takes to ensure your customers stay happy and keep your focus on client retention.
2.Existing customers more likely to buy from you than new customers.
The probability of closing a sale with a new customer ranges somewhere between 5-20% but selling to an existing customer has a much higher probability at 60-70%.
3.Customers are willing to spend more for excellent service.
Customers are willing to spend between 7% and 22% more with companies that provide excellent service (American Express 2017 Customer Service Barometer). Customers generally remember the service (good and bad) a lot longer than they remember the price.
A survey conducted by American Express concluded that people “are willing to spend more with companies that provide outstanding service, and they will also tell, on average, twice as many people about bad service than they are about good service.” Getting service right is a must do, according to Jim Bush, Executive Vice President, World Service, American Express, because “ultimately, great service can drive sales and customer loyalty.”
4.Great customer service strengthens your brand.
Customer service is a statement about your business. People assume that if your customer service isn’t good then neither is your product or service. But, the converse is also true that if your customer service is good then your product or service is assumed to be good as well.
According to one survey, when customers trust a brand, 82% will continue to use that brand frequently and will even recommend that company to others. This word of mouth advertising is worth its weight in gold; it is free advertising that strengthens your brand and your company’s reputation.
Happy customers won’t hesitate to recommend your company to friends and co-workers. This increases your visibility and saves you from spending resources on customer acquisition.
“It’s very logical:” says Gary Vaynerchuk, entrepreneur and communications guru, “There is proven ROI in doing whatever you can to turn your customers into advocates for your brand or business. The way to create advocates is to offer superior customer service.”
5.Emphasis on customer service is a profitable marketing strategy.
Only 29% of B2B customers actively engage with the companies they deal with. That means that over 70% of customers have no relationship with or ties to a company and would have no problem going to a competitor.
While that 70% would have no problem switching, customers would always prefer to work with a business that they’ve had a great experience with. After all, it’s easier and takes much less time and energy to go with someone you know rather than searching for someone new. Simply put, when you provide excellent customer service, your customers are more likely to be loyal and use your business any chance they get.
Tony Hsieh, Founder and CEO of Zappos, revealed that at Zappos they “take most of the money that we could have spent on paid advertising and instead put it back into the customer experience. Then we let the customers be our marketing.”
6.Customers remember positive interactions and relationships.
When your product or service reaches end of life, it’s your reputation and customer relationships that live on. Your customers are living, breathing people, with feelings and emotions, who like to be treated with courtesy and respect.
With customers facing so many choices with who to do business with, one way to set yourself apart from the rest and add value is to treat your customers like they are important. When you value your customers more than just as a means to an end, you demonstrate to customers that you are serious about building long-standing relationships. In the end, customers prefer working with a business that understands their needs versus one that treats them like just another client.
Strong relationships result not only in repeat business but will likely lead to other collaborations and opportunities as well. Basically, a customer service model that centers on building relationships can help drive profits and allow a company to successfully compete against larger competitors that may have more resources and funding.
The bottom line is that customer service should not be viewed as a business cost but as an investment that can help drive business growth. It is a sales opportunity and companies like Macondo Networks that make customer service part of their company philosophy are able to separate themselves from the competition and come out on top.