Why customer service is the new marketing
Customers are bombarded with advertisements everywhere they look, and they are not fond about it. The right customer service can be the pen signing your deals, if only you provide the ink. Marketing is no longer a series of advertisements. Customer service is the new deal. Are you wondering why? Do you want to know how to stop your company from losing money? Read our article below and build up your support-game.
How companies are losing revenue
Estimated in the US alone, there is a $64 billion loss every year due to poor customer service. This gives us reason enough to take customer service seriously (and give you goosebumps), yet there is more that might crack your brain a bit. Out of every 10.000 companies who claim to offer a ‘superior customer experience’, only 100 are actually able to do so according to their customers! The average American will tell about 15 people if they have encountered bad customer service according to American Express. Another shock-factor is the impact of a single bad customer experience. NewVoiceMedia concluded that after just one bad customer experience, 51 percent of customers are never willing to do business with that company again.
The point we’re making here is clear. Customer service is more important than ever, and it can cost you serious loads of money if you don’t do something about it.
From passive collector to empowered consumer
A reason why customer service has replaced traditional marketing is the changes in consumerism. When the customer used to watch the news, he or she was continuously interrupted by ads. The customer was a passive collector of the information being thrown at him. Our current customer, however, knows about ad-blocker and cookies. This customer knows where to unsubscribe and is able to block annoying pop-ups while reading an article. Our current customer is empowered by user-generated content, reviews and influencers. However, this customer is not only empowered, yet also impatient and demanding.
How big brands are changing the standard
The new empowered customer has new expectations when it comes to customer experiences. She has seen it firsthand with top-dog companies. Look at Zappos for example, the shoe and clothing retailer has an unlimited amount of contact time, easy to find contacts and they are navigating towards a solution, not a finish line. Watermelon realizes the importance of customer experiences, that is why we expand customer service from nine to five to 24/7 daily. A great tip on how to make sure you’re on top of your game is to compare yourself with your favorite brands. Don’t only compare yourself to other companies within your industry, but with all companies in every industry. Look at your own personal favorite experience with a brand and see how your company could learn from that.
‘When it comes to making a purchase, 64% of
people find customer experience more important than price.’ – Gartner
Resource allocation and the right technology: the solution
If the big brands are doing it, why shouldn’t you be able to? Companies spend immensely on reaching new customers, instead of retaining their existing ones and keeping them satisfied. It is anywhere from 5 to 25 times more expensive to acquire a new customer than it is to keep a current one. The overall costs for marketing are proven to be way higher than the costs put int o customer service, and losses because of that are clear. One of the solutions to better your customer experience is to invest more in it. I’m not only talking about money; the right technology and people are also highly important. Make sure your customer service employees know about your product in detail and are actually able to answer every question. When your customers can’t reach your customer service 24/7, you need a solution. Enable a chatbot to deal with customer queries after the nine to five working hours. With the right budget, technology and people you win at customer service, and in marketing.
The right customer service is more important than ever. Our customers have changed, just as the fitting marketing strategy. Want to step up your customer service? Take a look at how Hunter Douglas uses a chatbot in their customer service to increase leads.