Employee Benefits

Why Good Customer Service is Important

African American male call center worker looking at screen, close-up.

Provides value

Great customer service programs should focus on treating customers well, answering questions and exceeding expectations. This approach helps businesses engage customers and build strong relationships.

Retains customers

Keeping loyal customers is less expensive than getting new ones. Research shows that it costs about five times more to attract new customers than to retain existing business. Satisfied customers become devoted buyers when a business is trustworthy and provides good customer service. Research shows there is a 60% to 70% likelihood that satisfied customers will return to make new purchases.

Creates endorsements

Loyal customers provide positive endorsements and good online reviews that can help businesses strengthen their brand. A loyal customer, on average, is 10 times more valuable than their first purchase. Research shows that people often make purchasing decisions based on recommendations from family and friends vs. advertising messages. Here are four statistics:

  1. About 97% of customers will tell others about very good or excellent customer service experiences.
  2. Nearly 70% of people would spend more money with a company that has excellent customer service.
  3. Approximately 24% of satisfied customers will return to a business two or more years after a good customer service experience.
  4. Research shows that 59% of people would try a new company to receive better customer service.

Prevents business failure

About 96% of American businesses close their doors within 10 years. One of the contributing problems is poor customer service. Buyers become frustrated over small problems that are not addressed. It happens when a business does not have good customer service associates who follow up on questions and promptly fill requests.

Reduces employee turnover

Employees want to work for businesses that appreciate worker contributions, encourage new ideas and treat customers fairly. When people work for an employer that provides good customer service, they are more engaged in their work. They become advocates for the business. Plus, they are more willing to stick with the company through business challenges and economic changes.

Customer service example

Customer service programs are important in every business industry, including employee benefits. For example, the Ameritas group division that handles dental, vision and hearing care insurance, has a strong track record for taking exceptional care of its customers. For more than 13 straight years, its claims contact center associates have earned BenchmarkPortal’s Center of Excellence award, an achievement only held by a handful of other companies.

Sources:
Forbes
Entrepreneur
Inc.
Help Scout

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