When you’re running a small business it can feel like you don’t need a customer service strategy. I mean - you’re a nice person after all, you’re always friendly and helpful to your customers. Besides; does a customer service strategy really make a difference to your profit?
The answer is 100% yes! When you’re a small business building a great customer service experience is a fantastic (and normally cheap) way to increase profits. Even better - I have many stats to back this up. So let’s dive in!
Loyal customers are profitable customers
You are between 60% - 70% likely to sell to an existing customer, compared to an only 5% - 20% likelihood of selling to a new customer. (Marketing Metric)
Loyal customers are worth 10 times as much as their original purchase. (Help Scout)
It costs 6-7 times as much to gain a new customer than to retain an existing one. (Help Scout)
Biggest takeaway: Don’t JUST worry about bringing in new business. It’s also so important to nurture your relationship with your existing customer base.
Extra for experts
Positive word of mouth is free marketing
3 out of 5 customers would try a new company for a better customer service experience (Help Scout)
7 out 10 would spend more with companies that have superior customer service. (Help Scout)
Loyal customers will tell nine people about their experience - that’s 9 potential new customers. (Help Scout)
Biggest takeaway: When you’re a small business your biggest point of differentiation is how personal your service is.
Extra for experts
Poor customer service will limit your growth
4 out of 10 customers will avoid a company for two years after a negative experience (Zendesk)
68% will never return after they switch away from your business. (Customer Service Manager)
The top two reasons people will leave your business is because they felt poorly treated or because their problem wasn’t resolved in a timely manner. (Help Scout)
Biggest takeaway: Not having a structured customer service experience will cost you money and potential customers - and you may never know how many people walked away without saying anything.
The importance of resolving complaints
For every customer that tells you they’re unhappy 26 will stay silent - that’s a lot of potential bad word of mouth. (Help Scout)
70% of customers will do business with you again if a complaint is resolved in their favour. (Help Scout)
78% of people have decided against making a purchase because of a negative experience. (Help Desk)
Biggest takeaway: Have a process for handling customer complaints; make it a priority in your business.