Customer service is the most important aspect of modern business because no matter how good a product is, how economically it is priced, and how much a business has invested in marketing it, you will have to work on your customer service. Because in the end, it’s only going to be the user’s experience, brand image, and word mouth which are going to decide whether a business is going to prosper in the long run or will tumble down after the initial hype.
Unfortunately, we have seen the latter case more often, as many new entrants tumbled after the initial hype because all these new businesses lacked the factors mentioned above. These factors of user satisfaction, brand image, and word of mouth are building blocks of customer retention.
But now many would ask why customer retention is important and what its relation is with the long-term survival of any business? Well, to answer it simply, everything. Customer retention is the single most important thing for the longevity of any firm.
There is a famous saying in the business community that a new customer grows a business while an old customer flourishes it. This holds true as well if observed in the light facts because stats suggest that it is 3 to 4 times more expensive to acquire a new customer than to retain one. Another thing is that the longer a customer stays with a business the more CLTV or customer lifetime value is accumulated, the major indicator for the successful long run for a business.
So what does this teach us, the crux of all this discussion was that customer retention is important and for successful customer retention its factors need to be fulfilled. The factors to improve customer experience, brand image, and positive word of mouth for a business can be achieved from one single department. Yes, you heard it right customer retention is dependent on one single thing, good customer service.
Customer service is the single most important factor that can make or break any business, and there are many case studies in which customer service became the deciding factor for the success of any business. If we observe an example of Cox Communications which is the third biggest cable company in the country, the sole credit of their success goes to the incredible Cox customer service which is quick to cater to all the needs of their consumer.
Customer Service in Current Business Landscape
The unfortunate fact of today is that customer service departments are the least of worries for any brand no matter how big or small. This is because after the pandemic businesses are going through tough financial situations, and in this state, they tend to ignore customer service as a time and resource-taking component of a business that is just there for the sake of it without delivering any actual benefit to the company.
Well, this is just the perspective of many among the business circle. However, this perspective is not only far from the truth, but can also be catastrophic for any business in the long run. The main reason is that the pandemic has also changed the regular consumer’s purchasing behavior. With the economic recession, the buying power has reduced significantly for the masses.
In times like these when money is few and far in between a consumer is extra cautious about spending their hard-earned bucks. This is why most customers now excessively research about a company and product before deciding to invest in it, and a crucial part of this research is the customer service of a particular brand. Because consumer of today wants to stick with a company for the long run that is why they are extra cautious in selecting a brand that would take care of them after they become a customer. This is the point where customer service comes into play regarding the overall customer satisfaction, and the kind of vibe existing customers are going to project on new potential consumers through reviews.
Technology in Customer Service
Now we have already established the importance of customer service, and how crucial of a part customer service plays in the consumer psyche today. Now the dilemma is that businesses are not looking to invest in customer service after the pandemic while consumers have become extra mindful about customer service after the pandemic. In order to solve this, it is recommended to integrate technological solutions that will not only reduce the cost and resources but will also help businesses provide a better customer experience to consumers. Some of these technologies are listed below.
Social Media
Social media is already proving to be a game-changer in the customer service department. Since this fast-paced society doesn’t want to remain stuck in long call ques to get solutions of simple queries, and wants their question to be addressed quickly and efficiently. This is exactly what social media does as it connects brands directly with their customers so they can have seamless communication and get their word across quickly. Similarly, brands can also respond with the same swiftness through social media, while the best thing is that all the social media platforms are free to use for both consumers and businesses alike. This is why we see that many big brands have their presence on all major social media platforms.
Live Chat and Chat Bots
This is another tool in parallel to social media which is immensely benefiting companies to cater to their customer service department by cutting costs and improving response rates. Chatbots are AI-based software that analyzes consumer patterns and answers customer queries without the involvement of any third person using Machine Learning. Through Chatbots, companies can cut the number of resources in a customer service department and can replace them with software alternatives like these which are available 24/7 to assist customers. Whenever the chatbot is unable to help a consumer they can easily shift to live chat to speak to an actual representative for a detailed solution of their query. Thus the combination of chatbot and live chat can prove to be a game-changer for customer service that is why it is already been adapted in various big firms.
Self Service Portals
This is also a software-based solution that is gaining rapid moment in the field of customer service. Self-service portals are like websites that are specifically designed for consumers, a customer can log in to their account and can manage their purchased products and services all by themselves. These portals have basic tutorials for technical difficulties while also having the option to pay bills or to make changes to subscribed services while also having an option for technical assistance. Basically, a one-stop solution for all customer care needs that is operated by the user himself without the involvement of any third person all through an online platform.
Summing Up
It’s about time businesses start taking customer service seriously. There can no longer be excuses of budget and constraints to ignore customer service as there are countless technologies present today like the ones mentioned in this article that can help reduce cost and allow businesses to offer superior customer service.
