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Customer Service – Why is it so important to business?

by User Not Found | Jul 08, 2013

Here are some facts that may help businesses understand why customer service is so important.

  • 93% of customers indicated that quality customer service was vital to maintaining brand loyalty.  Source: Creative Strategies
  • A 5% increase in customer retention can increase profits by 25 - 95%. Source: Bain & Co
  • Companies that make customer service a high priority see twelve times the return on sales than those companies with a low emphasis on service. Source: International Customer Service Association
  • Only 1 out of 25 dissatisfied customers will express dissatisfaction. Source - Business e-coach
  • 68% of customers stop doing business with a company because of poor service. Yet 95% of dissatisfied customers would continue to do business with a company if their problem was solved quickly and satisfactorily. Source: International Customer Service Association
  • Reducing customer defections can boost profits by 25-85%. In 73% of cases, the business made no attempt to persuade dissatisfied customers to stay; even though 35% said that a simple apology would have prevented them from moving to the competition. Source: NOP
  • 1% reduction in customer service issues could generate an extra $40m in profits for a medium-sized company over five years Source: NOP
  • 70% of customers left because of a lack of attention from front-line employees. Source - International Customer Service Association
  • Two-thirds (or 66%) of customers do not feel valued by those serving them.  Source - Business e-coach
  • 6-7 times more expensive to gain a new customer than it is to retain an existing customer. Source - Bain & Co study in the Harvard Business Review
  • Happy customers tell 4 others of their positive experience.  Dissatisfied customers tell 12 how bad it was.  Source - Business e-coach

In order to keep and grow your customer base a service strategy needs to be considered.

The sustained success of a business relies significantly on ongoing high levels of customer satisfaction. Any dynamic business should focus on how a business handles its customers and the appropriate training required by staff.

All companies should consider training their staff either by offering a program that is tailored to the business or by sending staff to courses run by registered training providers. TAFE SA offer both options – companies can have a program developed specifically to meet the meets of the client or individuals can attend a workshop at TAFE SA which covers the main components of good customer service. These programs are offered through the Marketing workgroup.

For a tailored customer service program contact with your enquiry and we will get back to you to discuss further.

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