5 Reasons Customer Service is Important to Small Companies

As a small business owner, you may at times find yourself strapped budget-wise. Operating costs, marketing, and logistics may take priority over customer service but it should never be overlooked. Customer service is crucial – especially for small businesses looking to establish themselves in their respective industries.

The following article will articulate 5 reasons why customer service is so important for small businesses.

Customer Referrals

Word of mouth referrals is very important for a business, even more so for one that is just starting. No one is going to tell their friends or family about your business if they were treated rudely or didn’t feel valued as a customer.

People are much more likely to use the products or services of a company if they heard of them through a trusted friend or family member. Keeping existing customers happy is a great way to ensure you have consistent purchases.

Encourages Brand Loyalty

According to most answering services, when customers feel valued by a company, they are more inclined to stick with that company and purchase new product lines outside of their norm. Good customer service is therefore imperative for brand loyalty.

This is how you can extract the most value from a customer since the revenue you get from them comes with much less effort than trying to convert new customers. Great customer service can create life-long brand advocates and who doesn’t want as many of those as possible. One way to achieve this is through a call center or answering service that can tend every customer that calls.

Offers Valuable Insight

Having good customer service can add a valuable resource: knowledge. Some market research can only be done via a customer’s interaction with your customer service reps – and you don’t have to pay extra for it.

For instance, you can train your reps to ask questions about why a customer likes your product or what they use your service for. Their valuable answers can be used to direct your marketing campaigns to truly resonate with your customers. A well-trained customer service team can seamlessly insert these questions into their conversations with your client and phrase them so they are simultaneously providing value to them.

It’s Cost-Effective

The initial investment in your company’s customer service may seem costly but it pales in comparison to new customer acquisition costs. Having return customers means you don’t have to spend anything on their return business. Plus, customers are likely to spend more money with a company they like. Focusing on customer service is usually less expensive than focusing on new customer acquisition.

More Margin for Error

Customers tend to be more forgiving when a company with good customer service makes a mistake. Let’s say a shoe company ships the wrong pair to a customer. Usually, that is enough for a person to stop buying shoes from that company, especially if the company has bad customer service.

As much as the person likes their shoes, one small slip up can be enough for them to abandon them if they are known for poor customer service. Having good customer service will incline a consumer to stick around if you commit a shipping error or even if you raise your prices.

At the core of everything you do you should be providing great customer service because without your customers you wouldn’t be in business and doing what you love. We hope this article has provided you with insight into why this is so important even in this digital age.