Customers are the foundation of success for any company which makes customer service by far one of the most important dimensions of your business.
Although good customer service is often up for interpretation, customers today have so many options that they can easily turn to another company should they experience bad service. Many will even spread the word with a poor rating on various review services for the whole world to see. Word of mouth travels fast. And if your business becomes known for poor customer service, it’s going to have negative side effects in all areas.
We’ve compiled a list of 5 outcomes you’ll inevitably have to face.
1. Loss of loyal customers
All in all, bad feedback tends to spread like a wildfire. After going through a negative experience repeatedly, rare is the customer who’d still choose to stick around. And when one walks away, not only you lose the profit, but you lose the potentiality of attracting new customers that word-of-mouth can provide. It takes more effort to attract new customers than it does to retain a valued one, so shedding customers is something no business can afford. The only way to do that is to provide a quality service to everyone.
2. Loss of potential customers
New customers tend to seek out businesses based on recommendations from people they know. If your business is being associated with bad customer service, your prospective customers will avoid having to deal with your company. People tend to believe firsthand accounts from their friends and acquaintances more than they believe advertising. They also give more weight to negative reports than to positive reports. In this case, they’re more likely to turn their attention to the competitor.
3. Loss of employees
Not only do you lose customers, but you run the risk of losing your employees once they start realizing that the ship is sinking. Having to be dealing with unhappy customers constantly makes the working environment toxic. This way they are likely to start looking for opportunities with other companies. Eventually, it’ll result in more costs because of the increased need for recruiting, hiring, and training of new employees.
4. Loss of reputation
Your brand's reputation is incredibly valuable and not something you want to lose control of. Bad customer service can cause serious damage to your reputation. As we’ve already established earlier, angry customers often bring their frustrations online. As a rule, they’re even more likely to leave a review experiencing a bad service rather than a positive one. Once it’s gone viral it’s almost impossible to regain your customers’ trust and repair the overall image which will eventually lead to loss of partners as nobody would want to be associated with it.
5. Loss of profit
When you lose customers, your employees, and your reputation, you lose sales which results in a considerable loss in profiting. And when you try to make up for it through cutting costs, you’ll still be required to improve your customer service. As it goes full round you’ll still have to improve your customer service only this time it’ll require more resources from your side which is difficult when your profits are already suffering.
These outcomes are great examples of how customer service can affect your company’s work. Go ahead and surprise your customers today so that you become known as the best people to do business with.
And don’t forget that by providing customers with an excellent service you help them make a decision of whether to refer your business to family, friends, and colleagues. The outcomes you’ll achieve thorough that would be worth it.