They say “the customer is king” because it is the customer who determines the bottom line of a company. The concept of customer service has gained significant recognition in the business world and every company strives to have a very satisfied customer base. From complaints desks to service desks, customer care desks and customer experience departments, companies go out of their way to ensure that all customers continue to enjoy the best service ever.
How a company deals with customer complaints has a significant impact on its reputation and overall profitability.
Improving customer satisfaction
By implementing advanced policies and procedures to improve the customer’s brand experience, a company can register high numbers of satisfied customers, increasing customer loyalty and additional revenue. Experts agree that customer complaints can help a company get even better customer satisfaction ratings than if there had been no complaints at all with exceptional skills. This technique is known as service recovery.
The satisfaction of your existing customer is cheaper than the acquisition of a new customer. In order to attract a new customer, you need to spend money promoting your brand and convincing him or her to start buying your product. On the flip side, sticking to your existing loyal customer takes less effort, money, and less time. For example, hairdressers know that getting their existing clients back for a haircut is easier than convincing a new client to try their services.
When a customer files a complaint with your customer service department, the resulting experience becomes the brand experience. This step is necessary as the customer can restore confidence in the brand. Suppose a company can present a positive brand experience. In this case, they are more likely to increase their loyalty, and it is loyal customers who are likely to make repeat purchases. This essentially translates into higher profits over time as long as you maintain the relationship with the customer. This means that the happier a customer is, the more likely you are to capture a higher customer lifetime (CLV) value.
“With higher profits, a company could invest more money in product campaigns and advertising to attract even more customers. However, if a company sacrifices the quality of customer service, it undoubtedly loses the loyalty of its current customers and cannot impress new ones, ”he explains CarGuard Trevor Smith, an executive who has spent a lot of time developing a great customer service strategy in their company.
Because of this, companies need to rethink their customer service and renew their relationships with their customers in order to achieve better returns. While customer complaints can have an adverse impact on a company in the short term, cutting off this crucial element can have an even more serious impact on a company in the long run. Companies that regard their customers as lifelong valuable can consider their customers their most important assets and therefore manage them carefully.
CarGuard Trevor Smith and the importance of customer service
According to CarGuard Trevor Smith, loyal customers should be an advocate for the brand.
Smith explains, “Customers who have positive customer service are more likely to recommend the company to others, and the opposite is always the case. The more you impress your customers with high quality customer service, the larger your customer base becomes. “
Trevor Smith picks up on the words of Sernovitz in his book “Word of Mouth Marketing” who found that for every person a happy customer speaks to, a dissatisfied customer speaks to five. However, a previously dissatisfied customer who is made happy will tell ten more customers about the experience. Trevor Smith says, “A positive customer or brand experience can significantly undo a bad brand experience.”