Quality of service plays an important role in any business: 68% of customers are ready to pay more for a better customer experience. But how to build a quality communication with the customer and why customer service is of paramount importance in business development?

Attracting a new audience is 5-25 times more expensive than retaining the ones you have, so it is critical for businesses to ensure quality customer service. For example, in the U.S. 58% of users are ready to change companies because of the level of customer service: American organizations lose more than $62 billion per year due to poorly constructed algorithm of communication with the support service.

Why customer service is profitable

Every customer service provider recognizes the need for a high level of customer service. Those who have had a positive experience with the customer support service are more likely to come back and order the service or product again. In addition, customer retention through customer service is cost-effective. According to research, the cost of attracting an audience (the price of getting a new customer) is higher for a company that doesn’t invest a small percentage of its budget in customer service. Investing in service can reduce churn rates. This reduces the amount you have to spend to attract new customers and the overall CAC.

An increase in customer retention rate of just 5% can equate to a 25% increase in profits. This is because loyal customers tend to spend more on a company’s services or products. As a consequence, the business will have to spend less on operating expenses.

Options for increasing additional revenue at the company

Consider the following situation. Software companies have different products in their portfolios. Each time a customer makes a request to customer service, once the request is satisfied, the team can refer the customer to a sales representative for a follow-up sale of another product or license upgrade.

With the right approach, customer service can improve sales performance and come closer to achieving overall business goals. Here are ways to make a direct impact on your company’s additional revenue:

1. Use feedback to improve your products. If your team or you are faced with a dilemma regarding design or inventory decisions, you need to ask for customer feedback so that you can make informed choices based on the data. Ask them to respond to regular surveys – this can be another useful way to get feedback.
2. Increase customer retention. The main goal of all customer service groups is to reduce customer churn and improve customer retention. It’s better to turn existing customers into repeat customers than to simply rely on the ability to acquire new ones. Encouraging repeat purchases often requires more effort than just keeping a website up and running. This is where team effectiveness really plays an integral part.
3. Take advantage of self-service resources. Many daily customer requests are simple, and it is possible to reduce their frequency by developing a self-service portal with frequently asked questions in chatbots and live chats.

Best outsourced customer support companies offer a profitable solution to increase your company’s revenue.