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Excellent customer service plays a critical role in any organization's success: here's why and how

by Erina Suzuki | Published On July 14, 2023

Excellent customer service can forge lasting customer relationships, drive loyalty, and generate positive word-of-mouth.

Customer service has evolved beyond its traditional role as a support function. In today's digital age, customers' expectations are high — they anticipate personalized experiences, proactive service, and seamless interactions. According to Salesforce, 88% of customers say a company's customer experience is as important as its product or services — up from 80% in 2020. Although customer service is often seen as an expense, it is important to recognize that it's an investment that can yield remarkable returns for organizations. Read on to discover the importance of excellent customer service and ways to improve customer service within your organization.

Why is excellent customer service important?

Drives customer loyalty

Customer loyalty is a priceless asset for organizations, leading to repeat business and increased customer lifetime value. According to Salesforce, 94% of customers say they’re more likely to purchase again after a positive customer experience. By consistently delivering outstanding customer service, organizations can create strong emotional connections with customers. Loyal customers are the result of these efforts. Additionally, loyal customers are more likely to stick around and become brand ambassadors. As a result, they would spread positive word-of-mouth and drive more opportunities for your organization.

Strengthens brand reputation

In today’s digital world, customers share their opinions and experiences through social media and other online platforms. Organizations that prioritize customer service and consistently deliver exceptional experiences can build a strong brand reputation. This includes positive word-of-mouth, online reviews, and high ratings, thus creating a ripple effect that boosts the organization’s reputation.

Reduces customer churn

Customer churn occurs when customers stop using an organization’s product or service, impacting your bottom line. However, prioritizing and improving customer service goes a long way. When organizations address their customer’s issues promptly, provide personalized support, and exceed their expectations, it leads to higher satisfaction and ultimately reduces their likelihood to churn. Keep in mind, it costs 5 times more to acquire a customer than to retain customers!

Here are a few ways to deliver excellent customer service

Consider these tips for delivering excellent customer service.

  • Offer personalized solutions: Using a customer relationship management (CRM) tool enables your customer service team to gain access to a comprehensive view of each customer’s history, interactions, and preferences. This way, agents can go beyond generic responses and instead offer a personalized response. This information can be used to anticipate their needs, and provide solutions unique to their concerns, leading to a more meaningful and satisfactory experience.
  • Proactively address customer needs: Exceptional customer service is an ongoing process. Rather than waiting for customers to reach out with issues or questions, proactive customer service takes the initiative to identify potential pain points and address them right away. To be proactive in improving customer service, organizations can utilize post-interaction surveys to seek valuable feedback from customers. This feedback can be used to identify areas of strength and for improvement, enabling the organization to make informed changes and enhancements in the future. Additionally, organizations can implement outreach campaigns to keep customers informed about upcoming events, promotions, or new offerings. Doing so ensures that customers feel valued and connected to the organization. By taking proactive measures, businesses can stay ahead of potential issues, build stronger customer relationships, and enhance their overall customer experience.
  • Leverage data to cover valuable insights: It is important to note that contact centers offer a wealth of valuable customer data and insights. Organizations can utilize historical reporting to analyze customer interactions, enabling them to identify patterns, pinpoint pain points, and uncover areas that require improvement. This data-driven approach enables organizations to make informed business decisions and optimize processes, resulting in enhanced customer service experiences.

The impact of customer service on organizational success is profound. When an organization’s prioritizes fostering loyalty, enhancing brand reputation, and reducing customer churn, it becomes a driving force for growth and success. If you haven't already, check out our previous blog where we discuss and share valuable customer service best practices.

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