Customer service
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3
 min read

Why Customer Service is So Important

Having the best customer service possible is, of course, a goal for most companies. But it is easier said than done. It can be hard to make this a main priority, especially when there are so many factors that come into play. Here are a few reasons why customer service is so important.

Having the best customer service possible is, of course, a goal for most companies. But it is easier said than done. It can be hard to make this a main priority, especially when there are so many factors that come into play. Here are a few reasons why customer service is so important.

RETENTION

Keeping a customer is usually much cheaper than getting a new one. So it is essential to maximize the lifetime value of each customer. Focusing on customer retention goes hand in hand with customer service. Brands have a 60% to 70% chance of selling to an existing customer versus only a 5% to 20% chance of selling to a new customer. The more repeat purchases you can have from one customer, the better. Let’s look at Amazon; for example, when a customer buys one product from them, they then make product recommendations based on their past purchase history. The Amazon welcome page is an excellent example of customer retention; it has all the most likely pages that a given customer will click. So really catering to what your customers individually buy is a great way to increase retention. And with IgnitePOST, you can send handwritten cards after a customer makes a purchase or whenever you choose to.

BRAND

Having good or bad customer service will also be associated with your brand, so keeping this in mind is very important. Customers may not know your brand mission or goals, but they will remember how you made them feel. Emotions related to a company is how a customer forms an opinion about your brand. Trying your best to serve them is a great way to build your brand identity and create a positive image. Brands like Tesla, Apple, and Trader Joe’s all have very defined brands. When you think about these brands, how do you feel about their customer service?  

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REFERRALS

Referrals are a great way to channel the satisfaction of loyal customers into new customers. So having happy, satisfied customers can be a great way to get referrals. Dropbox, for example, uses their products to get referrals. They offer 500 MB more space if you refer someone. So why not try to refer a friend? Referrals are a bit more intimate, and the customer is personally vouching for your business, so they have to be quite loyal, by definition.

LOYALTY

There is no better way to build loyalty than to treat your customers like they mean everything to your business. Giving them the best service shows that you care about them, making them care about you. DSW, for example, rewards you with points with every purchase that you make. This indicates that they are loyal to you. If you support them, they support you. With IgnitePOST, you can send thank you notes, notes to announce a new product or service, or anything you would like to say. Loyalty and retention go hand in hand. If you have loyal customers, they will stay longer. The longer they stay, the more loyal they become.

CUSTOMER EXPERIENCE

If you focus your attention on customer service, you can also learn how customers interact with your company. Going through this process is a great way to know where the more significant gaps are in a product or service, helping you grow.

IgnitePOST Team
Verified writer
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