How important is customer satisfaction? Consider this: a study has shown that 86% of customers would be prepared to pay more if the extra paid would guarantee them a better service. When you couple that to the fact close to 90% of customers will simply move to a competitor if they have a bad customer experience, then good customer service, resulting in customer satisfaction, obviously makes very good business sense indeed.
Surprisingly, there are many companies that still don’t make this connection. They try to attract loyal customers by undercutting their competitors, by making questionable claims, or by simply concentrating solely on company profits. It’s the wrong focus.
The Power of Customer Satisfaction
Customers who rate a company very highly are six times more likely to buy from that company again, compared to a company they rate as merely “OK”. Furthermore, repeat customers are likely to buy more than twice as much as a newly acquired customer, who, incidentally, will have cost the company up to seven times more than the retention of an existing customer.
Every study that’s been done in this field tells a similar story; keeping your existing customers satisfied is by far the best and cheapest way to make healthy company profits. A problem concerning price, or even the quality of a product, is less likely to deter a customer than a problem that stems from bad customer service.
A common way that companies try to increase sales and revitalize a sluggish market is by offering discounts or lowering their prices. This certainly does have some effect, and a company may be quite satisfied with the results it gets from doing this, but there’s a much better way. Simply increasing customer retention by 5% through excellent customer service can increase profits by as much as 95%.
Call Center Reputations Rest Largely on Customer Perception
Getting a call center to handle all your calls can be a bit scary for a business trying it out for the first time. How will callers be greeted? Will they be treated properly? Will the company lose business as a result of caller not getting the service they need? These are just some of the questions that might be going through the mind of a business owner who is about to contract a telephone answering service.
It is for this reason that a call center has to provide even better customer service than most businesses do. The first contact has to put the caller’s mind at rest. They have to feel they will be dealt with properly by someone in authority who is competent and knowledgeable. In short, their experience has to be one that provides satisfaction on every level.
The call center is, of course, representing another business. They are the “voice” of that business, and the good reputation of that business depends on how the telephone agent treats each caller. Properly trained and experienced telephone agents can significantly increase a company’s profits by simply providing a good and memorable customer experience.
When you consider a satisfied existing customer is 70% more likely to buy something from you than a newly acquired customer, doesn’t it make sense to concentrate more on providing a first class customer service to keep the valuable customers you already have, than to flirt with discounts, price reductions and other marketing gimmicks?
About Neal Lacy
Neal Lacy has written 82 posts in this blog.
Neal Lacy is an expert in professional call center services. He provides great content on a wide variety of topics concerning answering services, message services, order taking, and virtual receptionist. He is main writer for United Call Center.