Brands that invest resources into fostering positive customer experiences are almost 6 times more profitable than brands who do not prioritise customer service.
It’s a compelling statistic; and it speaks to the correlation between customer service and a business’s bottom line.
A recent study showed that businesses in the UK lose around £12 billion every year as a direct result of poor customer service. And times have changed. Previously bad customer service was something that could be swept under the proverbial rug, but with the proliferation of social media, companies simply can no longer get away with bad levels of service. Bad reviews and complaints on social media can have serious consequences in terms of reputational damage, and at start-up stage, reputation can quite literally be a make-or-break factor.
Time to Apply Some Long-Term Thinking
In the business sector, customer experience is one of the keys to longevity, especially in competitive environments like retail, hospitality and digital services. Black entrepreneur and business owner, Aysha Bell agrees strongly with this sentiment:
“Customer service is key, especially in face-to-face business like hospitality, but all businesses need good person-to-person communication. As humans we need to feel seen and have our needs met in a gentle; almost nurturing, respectful way. Having worked in hospitality as a barber and now a yoga teacher, I know the impact good customer service has on the client. It’s not just business, it’s kindness and care that make a lasting impression on your customer. If you’re selling a service or product, you want your customers to feel seen and uplifted. Consistently good service doesn’t go unnoticed.”
Is Bad Customer Service a BAME Problem?
Jamii raises an important perspective – there is an existing stereotype that customer service is particularly bad in the BAME sector. Let’s take a closer look at some practical examples – the BAME grocery store that has below-average hygiene levels, the retail shop owner who reprimands his employees in front of customers, the takeaway service that takes incredibly long to deliver. Over time these archetypes have been associated with BAME-owned businesses, but let us be clear – bad customer experience is not exclusive to BAME-owned businesses. It is a countrywide challenge for businesses across the board. However, prevailing stereotypes mean that BAME business owners need to work that much harder to make serving their customers a priority.
Angelica Louise Bagot, owner of the Tribal Unicorn candle bar explained that, “customers are the heart of a business. I rely on their honest feedback to ensure that I am providing a quality service and product. Good customer service to me means building a thriving community around your brand. Customers must feel like they can approach us when they’re not happy as well as when they are. To date, our customer service score is around 98% satisfaction, based on feedback from recent customers. It means everything to me and it is the cornerstone of my business.”
Find a Way to Keep Them Coming Back
We believe that good customer service is an investment, and the end-goal is customer retention. Business owners can sometimes become so caught up with new customer acquisitions, that they lose sight of the value of a returning customer. For a number of reasons, a returning customer is almost more valuable to a business than a new one.
Repeat customers spend more, according to a statistic by Annex Cloud (Statistics reveal that returning loyal customers spend an average of 33% more per order as compared to others).
Repeat customers who feel a positive affinity towards a brand will tell other people about it. In a rather noisy advertising climate, word-of-mouth marketing is still the most effective way of establishing a brand.
Acquiring a new customer costs more in terms of marketing investment than a repeat customer.
There is a Bigger Picture
When we talk about good customer service, it’s important to remember that the term encompasses the entire journey, from how you speak to new customers, to how they are treated in-store and online, and finally, to how they are communicated with after a sale has been made.
The good news is that improving your customer experience doesn’t require an entire brand overhaul. It can be accomplished by employing a few simple strategies – a topic that we will be exploring in more detail in the coming weeks.
We’d love to get your input. What does your business do to go the extra mile in terms of customer service? Pop us a message on social media and give us your opinion – if you make us smile, we promise to feature your business in our next feature.
