Customer service should promote customer loyalty

It costs far more to obtain new customers than to just keep your existing customers happy and loyal. This is one of the maxims every business school student learns and yet we see so often that this not true on the ground – brands offering bonuses to new customers and penalizing those who remain loyal are a good example.

The customer service function is the frontline of trying to keep customers loyal. Whenever they interact with your brand, it is usually through the customer service gateway and so it is critical for the customer service team to understand that serving and pleasing existing customers is as important – if not more – as getting new customers on board.

This Branding Strategy Insider blog lists four interesting reasons how brands get customer loyalty all wrong:

  • The process of selling is better than the reality of serving
  • The brand is afraid to truly engage with clients
  • The brand does not encourage a community of customers or fans
  • The brand sticks to what they know – because they know best

These four failings can all be dealt with by working closely with the customer service team. The customer service function is about far more than just handling complaints, they can hear what customers are talking about and asking for right now and they can really engage with customers and create a true community of fans.

Any executive not exploring how the customer service team can directly contribute to keeping customers loyal to your products or service is really missing out – and losing business to the competition.

What price loyalty or lunch time economics

 

Photo by John Hritz licensed under Creative Commons

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This entry was posted in Contact Centres, Current Affairs, Customer Service and tagged , , , , , , , , , , . Bookmark the permalink.

One Response to Customer service should promote customer loyalty

  1. Forrester believes a ten point increase in a company’s customer service score adds up to an extra $1bn of sales, showing how vital good service is. But the key thing is to avoid confusing sales and customer service – if someone comes to you with an issue it isn’t an opportunity to immediately sell, rather a chance to solve their problem and make them happy. And happy customers are more loyal – and more likely to recommend you to their friends. More in this Eptica blog post at http://eptica.wordpress.com/2013/04/10/turning-customer-service-excellence-into-sales/

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