When customers share their story, they’re not just sharing pain stories. They’re actually teaching you how to make your product, service, and business better. Your customer service organization should be designed to efficiently communicate those issues.”
– Kristin Smaby, “Being Human is Good Business”
In this new competitive world, an effective customer service is essential to the survivor of any business. It is a proven fact that you can lose more clients due to poor service than from your product quality or cost problems. Let’s take a look at some interesting statistics that will show how important it is to develop a more customer-oriented mind:
- $41 billion is lost by US companies each year due to poor customer service.
- It takes 12positive experiences to make up for 1 unresolved negative experience.
- It can cost five times more to buy new customers than retain a current one.
- 82%of consumers have stopped doing business with a company because of bad customer service
- 40%of customers begin purchasing from a competitor because of their reputation for great customer service.
- 58%are willing to spend more on companies that provide excellent customer service
- 95%of customers share bad experiences with others
- 62%of customer service organizations view customer experience as a competitive differentiator.
- 67%of organizations view improving the customer experience as one of their top three priorities
- 65%are frustrated by inconsistent experiences across channels in the same institution.
- Assessing the personality type of a customer at the beginning of a call can reduce repeat calls by 40%.
Having these statistics in mind, let me propose 10 basic rules of effective customer service:
- Have a professional, friendly and energetic attitude.
- Be polite and enthusiastic about your business.
- Speak clearly but not aggressive.
- Know your service very well.
- Tell customers what you can do – not what you can’t.
- Learn your customers’ names.
- Listen and allow your customers to “vent”.
- Timely responses.
- Keep your customers informed.
- Solve problems and follow-up.