Many retailers believe customer service to be an overhead of doing business, but if this were the case then cost reduction would be the best approach to improving your ROI (return on investment). Thankfully, this is not the case.
Customer service comes with value-added activities that help businesses retain more customers. If used strategically, customer service evolves into a competitive differentiator for organizations and allows them to stand far above the competition. Having a loyal customer base allows businesses to improve financial performance and gain approval from shareholders.
If one were to investigate the true value of customer service, one would have to start from the relationship businesses develop and nurture with their customers. The story includes initial marketing endeavors, sales journeys, and post-sales support. These engagements allow businesses to build a good rapport with customers. Consequently, when customers realize that a business is intent on understanding their needs and concerns and is always working on ways to address them, they will trust that company more, and apart from conducting repeat business, they will further evolve into brand ambassadors for that organization.
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If all the above sounded good, then here are things you can do to increase revenue just by providing good customer service.
Work on customer loyalty
Customer loyalty is a concept many businesses tend to get confused about. After all, there is only a fine line separating a satisfied customer from a loyal one. To put it simply, a satisfied customer will consider engaging in repeat business with a business, but a loyal customer will come directly to a business without even considering its competitors. Loyal customer is also likely to refer their friends and family to the business.
It is a fact that having a loyal customer base better than having great products. It does not mean that businesses should consider lowering the quality of their products. A loyal customer base is developed when a company shows customers that it respects them, cares for them, is mindful of their time, and understands their needs.
Businesses need to seriously focus on their customer service staff as they provide the essential individualized touch needed to forge loyalty-inducing connections with customers. They are also the last people with whom your customers will interact if you have physical stores then the experience your customers will get from the retail staff will be something they will always relate with the business. It is best you ensure that you end your business transactions on positive notes.
Always upsell/cross-sell
One of the best ways to increase revenues is to upsell or cross-sell. Most businesses tend to concentrate on the word “sell” when they should be working on upselling and cross-selling. These two terms are focused on understanding customer needs and finding ways on helping the customers through additional products.
It is always a pleasant surprise when a customer discovers that a company has more to offer them. If the customer service staff is knowledgeable about products and services that solve customer concerns and make their life easy, then they will not only make satisfied customers they will also bring their company more revenue.
