Customer service is important because it is the direct connection between your customers and your business. It retains customers and extracts more value from them. By providing top-notch customer service, businesses can recoup customer acquisition costs. This helps to cultivate a loyal following that refers new customers, serves as case studies, and provides testimonials and reviews.
Customer service teams provide a valuable service to businesses by ensuring that customers are happy and satisfied with products or services. In turn, this loyalty creates positive word-of-mouth marketing for the business, which can lead to increased sales and profits.
Investing in a quality customer service team is one of the best investments a business can make. Customer service teams help businesses to create and maintain a positive reputation, which is essential for long-term success.
There are many reasons why customer service is important, but here are 16 data-backed facts that highlight just how crucial customer service teams are:
1. Customer service is the number one reason why customers stay with or leave a company, according to an American Express survey.
2. 78% of consumers have bailed on a purchase because of poor customer service, according to CustomerThink.
3. 90% of consumers would pay more for better customer service, according to American Express.
4. 92% of customers would recommend a company to friends and family after a positive customer service experience, according to CustomerThink.
5. A study by NewVoiceMedia found that U.S. businesses lose $62 billion each year due to poor customer service.
6. Customer service is the second most important factor (after price) when deciding whether or not to do business with a company, according to a study by Accenture.
7. 86% of consumers say they would pay more for a better customer service experience, according to American Express.
8. Good customer service leads to repeat business – 70% of Americans say they would return to a company after a positive customer service experience, according to CustomerThink.
9. The cost of acquiring a new customer is six to seven times more expensive than retaining an existing one, according to Bain & Company.
10. A satisfied customer tells nine other people about their good experience, while a dissatisfied customer tells 16 people, according to CustomerThink.
11. Customer service has the biggest impact on brand perception, according to a study by TARP Worldwide.
12. It costs five times more to attract a new customer than it does to keep an existing one, according to Bain & Company.
13. Customer service is the most important factor in determining whether or not someone will do business with you again, according to a study by American Express.
14. In today’s digital world, it takes 12 positive online reviews to offset the effect of just one negative review, according to Reputation.com.
15. A study by NewVoiceMedia found that U.S businesses lose $62 billion each year due to poor customer service.
16. Customer service is the most important factor in determining whether or not someone will do business with you again, according to a study by American Express.
These facts make it clear that customer service is essential for any business that wants to be successful. By investing in a quality customer service team, businesses can reap many rewards, including increased sales, profits, and loyal customers.