Visma Corporate Blog

Customer Service – The best form of sales?

Customer service is often viewed as resolving customer complaints about the products and services you provide rather than what it should be known as – developing relationships with your customers. Businesses often concentrate on gaining new business and forget the need to look after the business they already have. According to Marketing Metrics it is 50% easier to sell to existing businesses than to brand new prospects. Delivering excellent customer service – over exceeding customer’s expectations and maintaining a relationship can benefit your business in a number of ways;

Customer Loyalty:

A customer who receives a level of customer service that exceeds their expectations is much more likely to purchase more products from your business over time. A relationship is formed with every sale you make and the better the service provided the longer the relationship will last. Good customer service reps will be able to answer any questions posed but also assess whether there is a chance of cross-selling and seeing if the customer may be interested in other products you offer. Companies that actively engage with customers and meet their needs and expectations will achieve greater customer loyalty. According to Bain and Co., a 5% increase in customer retention can increase a company’s profitability by 75%.

Recommending your business & Reputation:

Dynamic workCustomers who receive good customer service are much more likely to talk about and recommend your products to friends and family. This free advertising can lead to word of mouth sales and good publicity. Customer confidence in your business grows and increases the visibility and popularity of the products and services you provide. According to Lee Resource Inc attracting new customers will cost your company 5 times more than keeping an existing customer. Similarly if you offer poor customer service negative word-of-mouth can really hinder your business.

Standing out in the crowd:

Most industries are competitive with competitors offering similar products or services to what you offer. By providing exceptional customer service you can set your business apart from your competition. Similarly, if you cannot afford to beat competitors on price then offering a better customer service can overcome this. An example being a local grocery shop compared to a national chain which can’t compete on price but can compete on customer service. The Small Business Success website indicates that customer service-driven businesses can charge up to 9 percent more for their products and services, and grow the business twice as fast as average.

Staff Morale:

Employees who understand the importance of customer-focused service and care about the total customer experience are invaluable. Happy employees will often lead to better customer service so it is wise to invest in aspects like training, empowerment and offering incentives to ensure employees are skilled, motivated and loyal. The happier your employees and consequently your customers are; the more likely they are to stay with your business.

Summing up:

Customer Service is a vital component of business and getting this right can ensure your business grows quickly. The importance of good customer service is shown by Garner Group who state that 80% of your company’s future revenue will come from just 20% of your existing customers.

About

William is UK\IE Country Manager at Mamut Norge AS, and has worked towards the UK market since 2004. He specialises in sales management and business development.
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4 comments

  1. Customer Service reps need to be able to really understand the needs/problems from customers.
    The best most proactive customer service reps can’t be succesfull if the product and procedures etc lacks quality. There the customers service resps have also an important signal function.

  2. I fully agree – we have built our business up on customer service, not that you can ‘sell’ this service; it has to be experienced. A competent customer services team can turn complaints into a positive experience and actually strengthen relationships. I am interested to read this on the Visma site as I think it would be good reading for all the Visma agents; we certainly haven’t experienced this level of service and consequently are looking for an alternative system provider.

    • Hi Jerry. Thank you for your comment. I’m sorry to hear that you’re not satisfied with our service. Please feel free to contact me if there is anything I can help you with.

  3. I totally agree with what you’re saying here. It is the best form of sales and that is why you should choose the right people to be part of your customer service team. Imagine, customer loyalty is something that you do not get often but you’d be able to get more of these with the right people and the right service.

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