Building Loyalty Through Customer Service

Keeping customers happy is more important than ever before.

The logic is pretty simple.  Receiving exceptional customer service makes people feel good about a company, which in turn makes them more likely to be loyal to that company in the future.

In fact, in many cases a good customer service team can be even more powerful for building loyalty than continually delivering a good product or service.  A study by Marketing Metrics indicated that if a company consistently delivered its product or service without any problems, customer loyalty would be approximately 60-70%; that is, existing customers would be about 60-70% likely to keep buying their current brand of product or staying with their current service provider if nothing else changed.  However, if instead the company screwed up somehow (I.e. service interruption, defective product, etc.) but fixed its mistake through excellent customer service (I.e. immediately acknowledging the problem and quickly resolving the issue to the customer’s satisfaction), customer loyalty levels increased up to 95%!

People don’t expect companies to be perfect, but they really admire the ones that care enough about their customers to admit their mistakes and provide superior service to fix problems.

But why is customer loyalty so important?

One big reason is that people are simply becoming less and less tolerant of poor service these days.  The Harris Interactive Customer Experience Impact Report indicates that 86% of consumers have quit doing business with a company because of a bad customer experience, which is up from 59% just four years ago.  This is important because losing customers is expensive!  It has been estimated that it costs about five times as much to acquire a brand new customer than it takes to retain an existing one.

The deterioration of a company’s reputation due to poor customer service is another important consideration.  According to the White House Office of Consumer Affairs, a dissatisfied consumer will tell between 9 and 15 people about his or her experience.  Plus, with the proliferation of social media services such as Twitter, Facebook and Google+, this number can be even higher, causing more potential damage to a company’s brand.  This trend can also work in a company’s favor, however, as happy customers will generally tell 4 to 6 other people about their positive customer experiences.

The bottom line is that customer loyalty matters, especially in our modern economy where people have more choices than ever before.  People will not be shy about taking their business elsewhere, so companies must focus more and more on keeping their customers happy if they want to remain competitive.  Delivering great customer service is no longer the exception… it’s the rule.

Outsourcing your contact center operations to a highly qualified customer service provider like Tacamor can get you on the right track towards keeping your customers happy and building loyalty.  It might even save you money, too!  Request a quote today to find out how Tacamor can help your business.

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  • http://www.delacon.com.au/Solutions/OutboundVoIPPABX/tabid/119/Default.aspx VoIP providers

    Yes…This statement is totally right.. Keeping customers happy is more important than ever before…If our costumers were not happy then what the fun of doing anything or launch new services..

  • Enkata

    A 27% increase is no small jump–that’s a major shift The customer experience can really make or brand your brand’s reputation and social media means consumers can share their complaints and issues instantaneously. Remember, you need your customers. They don’t need you!

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