The Importance of Customer Service

Great customer service is essential to the health of any business, ranging from retail to finance. As a customer, you should be treated with respect -- all of your expectations exceeded and your questions answered. When engaged with a brand, your loyalty as a customer can fortify or revitalize a company. And as a result of good customer service, a business can establish a strong and positive professional relationship with you.

Good Customer Service Will Earn Your Loyalty

In the United States, approximately 96% of businesses shut down within their first ten years. Ultimately, poor customer service is one of the top contributing factors to this startling trend that affects artists, chefs, educators, and stockbrokers alike. When customer service associates fail to address small problems, follow up on questions, or promptly fill requests, customers like you tend to get frustrated.

However, when you walk away from your initial introduction to a brand with a positive customer service experience, it is more than likely that you will return. Alternatively, if someone you know has a positive experience with a new business or brand, the likelihood of you giving it a try immediately increases. Business executives who value their customers, like Elliot Sherer, registered representative and Senior VP of Investments at Aegis Capital Corp., know this to be true. Although the quality of the goods or services received is certainly important, most customers’ loyalties lie where they feel that their time and money are appreciated and valued.

A Loyal Customer is Incredibly Valuable

It is far less costly for a business to hold onto loyal customers than it is for it to acquire brand new ones. Specifically, attracting new customers can cost as much as five times more than retaining existing customers. Thus, as a loyal customer, you are an incredibly valuable asset to any enterprise.

When you are satisfied by the customer service and the goods or services provided, you as the buyer are likely to develop a sense of trust and loyalty to that particular brand or business. And as a result, the likelihood of you -- the customer -- making a return purchase after being pleased by your initial one can range from 60%-70%.

Your Positive Endorsement or Online Review Can Strengthen a Business

As a loyal customer, the positive endorsements and solid online reviews you provide can do wonders for a business. Individuals tend to make critical purchasing decisions based on family and friend’s recommendations. As a result, loyal customers like you are, on average, ten times more valuable than the grand total of your initial purchase.

Good customer service is valuable as it provokes positive word of mouth from customers like you. Around 70% of individuals spend more money with a business that boasts glowing customer service reviews. And typically, about 97% of customers who have a very good or outstanding customer service experience with a particular brand will share said brand with their family members, friends, and acquaintances. Solid online reviews detailing a pleasing customer service experience can also help a company hold onto your attention and loyalty. Research shows that roughly 24% of satisfied customers return to a brand within two or more years following a positive customer service experience.

The promise of a positive customer service experience can effectively attract you to a newly-established business. So much so that nearly 59% of customers like yourself would be open to trying out a new company’s goods or services in search of an improved customer service experience.