Cost of Poor Customer Service
As you go about building your business, one thing that you may be overlooking that could come back to really cause unfortunate impacts on your growth progress is customer service.
If your customer service isn’t quite up to par, you could suffer a number of consequences. Let’s have a brief look at what these are so that you can be sure you are fully aware of why this is such an important issue to be addressing in your business.
Improved Repurchase Activities
The very first reason why poor customer service activities can really hamper your business growth is because first, it will lead to a reduction in repurchase activities.
It’s very well known in the business environment that the cost to acquire a new customer is going to be greater than the cost to maintain a current satisfied one.
Once you have a customer in place, if they are fully satisfied, the chances are quite high they will repurchase from you again in the near future.
If they are not fully satisfied however, they may not repurchase and this leads to reduced revenue costs. This is basically like you losing out on part of the market share.
Are you willing to risk that loss?
Increased New Customer Acquisition Costs
Second, another big problem with poor customer service is the fact that it will increase your costs then for new customer acquisition. If you’re continually losing the customers that you have already gained due to poor customer service, you’re also going to have to be continually getting new customers to come to you.
This drives up your marketing dollar and decreases total revenue.
Finally, the last way that poor customer service is going to impact you in a negative way is that it can seriously harm your reputation.
If you leave a bad taste in your customer’s mouth, you can rest assured that they are going to tell their friends and family about it. And, with social media sites being as active as they are today,
it’s not difficult at all for an angry customer to go and start spreading bad reputation around your profile regarding the service that they have received.
If this occurs, you again can rest assured it’s going to decrease your revenue dollar. If your business has a bad reputation, this means that others are going to be that much less likely to purchase from you because of this knowledge so now not only have you lost a current customer, but your cost of acquisition may also go up to gain new customers as they already have a negative bias against you.
If your reputation starts to fall, it can be a highly devastating experience for almost any business, so this is something that you really must be aiming to avoid as best as you possibly can.
So there you have some of the primary reasons why you cannot overlook the importance of good customer service. Stay away of it and make sure you are doing everything in your power to foster great customer service results.
At alldayPA we believe the way you answer your calls is a huge factor in offering great customer service. Speak to one of our team about how we can help to improve your customer service with our telephone answering services