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How Customer Service Impacts the Bottom Line

If you own a business, customer service should always be a priority. Keeping customers happy is the key to running a successful and profitable business. Without it, you start to find issues with customer retention and the cost to aquire customers is always higher than retaining them.

How does customer service affect you?

96% of consumers say customer service is an important factor in their choice of loyalty to a brand. 52% of people say they have made an additional purchase from a company after a positive customer service experience.

81% of people are more likely to work with a business again after good service. This means that increasing your customer retention by 5% can increase profits by up to 25-95% based on average costs to acquire versus retain customers.

Companies who make customer service a priority, on average, make 60% higher profits than competitors. This is because, for most companies, loyal customers are worth 10x as much as their first purchase.

Negative Interactions

Negative interactions spread to more than twice the number of people as positive interactions. In fact, a stud by Harris Interactive tells us that 89% of people will simply never do business with you again. 96% won’t complain to you. They WILL tell others, however.

The average dissatisfied customer will tell betweek 9-15 people about their bad experience. 13% of people that have had a negative experience will tell 20+ people.

It takes on average 12 good experiences to make up for 1 bad experience.

Buying Experience

70% of buying experiences are based on the way the customer feels they are treated. Notice I said feels. It’s not always about reality. It’s about feelings.

People that feel good about their experience with you spend more. 33% more on average from repeat customers. In fact, the average consumer reports they will pay 17% more to do business with companies that have great reputations when it comes to service.

Online Interactions

Only 23% of businesses today provide any form of customer service on Facebook according to the social media giant. However, 46% of people polled expect it.

Twitter reports that over 1 million people view tweets about customer service every week with 80% of those being negative.

88% of potential customers aren’t as likely to buy from companies who don’t answer or handle complaints.

90% of consumers regularly use online reviews to determine which business to use.

Would you like to know more about managing your customer service and online reputation? Find more here.

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