Why is it worth investing in service quality?
Many companies wonder whether and why they should invest in service quality. Here are five key reasons why.
- Increased recommendations – acquisition of new customers
Satisfied and loyal customers recommend the company's services and products to their friends, as recommendations from friends are a very reliable source of information. The company can acquire new customers without the need for costly promotional campaigns.
- Profit from charging a higher price
Regular, loyal customers are more willing to accept price increases than new customers. Even a justifiable price increase of just a few percent is not a reason for satisfied customers to abandon their purchase.
- Stable and long-term profit from current sales
It's service, not product, that determines customer churn. Customers satisfied with the quality of service guarantee stable, long-term profits. Let's look at the reasons why customers stop buying a company's products:
- 69% leaves due to poor quality of service (company indifference)
- 14% due to dissatisfaction with the company's products
- 9% is leaving due to a more favorable offer from the competition
- 3% changes place of residence
- Lower operating costs
Customer service costs for two-year customers are reduced by two-thirds compared to one-year customers. Furthermore, high-quality service reduces the costs associated with re-service and complaints.
- What effect does all this have together?
The experience of companies that have implemented comprehensive customer service quality management solutions shows that this system contributes to an increase in sales at the level of 7-11%, compared to the initial situation after about a year.
The quality of service has a positive impact on customer relations, shapes the image, loyalty (customers return), and the implementation of appropriately designed active sales standards has an immediate effect.
If you want to improve the quality of customer service, please contact us!
