Why Customer Service Is the New Marketing

Customer service is the new marketing? Actually, we would argue that it’s old marketing that just got overlooked for a while. The reason customer service is becoming more and more important is the fact consumers simply don’t buy the mass campaigns anymore and would rather rely on their personal experience with your company or on a referral from their friend. 

Customer service is what truly represents your brand and has the power to make or break your business. The better a person’s experience with your customer service, the more likely they are to buy from you and become your regular customer. Here are some of the reasons why customer service is of the utmost importance and how to improve it.

Helps Build Trust

Whatever you do, there is probably plenty of competition who is perhaps even able to offer better products or service and at a lower price too. And consumers have no reason to stay loyal to a company unless their customer experience is great.

Yes, that means you need to work hard to keep your existing customers, because wow customer service goes beyond the basic expectations to make a customer happy. But if you build their trusts, it will be worthwhile. People will always return to a company that treated them well rather than risk it with a new one.

It Builds Brand Awareness

Doubtlessly, a word-of-mouth referral is still probably the best marketing you need. In order for people to refer you to their friends and families, you must provide excellent customer service.

If you do your part and provide a great customer experience, your customers will do theirs and spread the word about your brand.

An Investment That Pays for Itself

The fact that you are 60-70% more likely to sell to an existing customer alone should convince you that you should undoubtedly invest in customer service. That means you are far less likely to sell to a new buyer and yet, companies spend vast amounts of money investing in marketing to new buyers. Does something seem off here?

Furthermore, if you consider the statistics regarding bad customer service, it will definitely cost you more in the long run if you don’t invest in it.

According to research, 33% of Americans will think about switching companies after a single bad customer service experience while more than half of them would give up a planned purchase because of bad service.

If you also add in the fact that people are more likely to tell their friends about a poor customer service experience, then what more is there to say?

Here’s more gloomy statistics: U.S. companies reportedly lose more than $62 billion annually due to poor customer service.

If you invest in customer service rather than slashing the budget when things get difficult, it will pay off in the long run. Keeping the existing customers happy should be a priority, as about 8 in 10 customers are willing to pay more for better customer experience.

Use Technology to Improve Customer Service

While chatbots cannot compare to a living person providing help, they are certainly very useful. When your support staff is overwhelmed and cannot respond to every customer immediately, chatbots can answer some commonly asked questions. It’s still much better than leaving customers without a response for a long time since nowadays, people do expect fast and efficient customer service.

Actually, it has been shown that 75% of online customers expect a response within 5 minutes or less. They are not willing to wait for hours to talk to a support staff member.

Use Videos to Save Time and Avoid Confusion

Thanks to technology, there are plenty of things you can use to improve your customer service. For instance, using videos and tutorials can be a very effective way to explain something to customers while saving a lot of their time. This can also save them the frustration of trying to figure it out by themselves, and a happy customer is a loyal customer.

Using videos in customer support is a very powerful tool as it helps you instruct your customers in a much better way while avoiding any confusion. For example, you can also use video FAQs to address customers’ frequently asked questions, or create instructional videos to simplify things for customers and explain to them how to use your product.

As you can see, there are more reasons to invest both time and money into customer service than in any other marketing tool. Everything you do in customer service and how you handle it, it’s all marketing.

Not to mention that a bad review can reach more people than a positive one. That is all the more reason to take this matter seriously and offer the best customer service experience possible. It will pay off.

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