More than half of your customers might switch to your competitors if you make one specific mistake. Do you have any idea what that one mistake could be?
You got it – customer service.
With so many individual customers in the balance, it’s important to understand how customer service affects your business and why it’s so important to retain your current customers.
Customer service in B2C companies
According to research by Parature, 65 percent of consumers have cut their ties to a particular brand after just one poor customer service experience.
B2B companies may have some slack because of their more complex relationships with clients. But as a direct-to-consumer business, customer service must be a top priority – it will set you apart from other brands.
Losing customers is expensive
If 65 percent of consumers only need one bad experience to stop buying from you, then it’s essential for you to maintain very high customer service standards. It may be costing you more than you think to disregard customer loss.
Bain and Company discovered that a tiny increase in customer retention of 5 percent could increase your company’s profits by 25 to 95 percent. It’s time to plug the leaks and stop giving customers a reason to leave.
Some customer turnover is expected in every business. Generally speaking, you can’t keep every customer forever. The problem comes when you give up entirely and focus more on constantly seeking out new customers without attempting to keep your existing ones.
Depending on your industry, finding and converting a new customer can be anywhere from five to 25 times more expensive than retaining an existing one. Failing to retain customers is expensive. Don’t let poor customer service be the reason they leave!
How customer service affects retention
In today’s marketplace, there is a lot of competition.
Even if you’re Read More Here