Excellent customer service does more than simply keep customers happy. Studies show exceptional customer service can increase brand loyalty and customer retention rates, drive higher revenue gains and positively impact the employee experience.
Customer service centers have undergone major shifts in recent years. Before the pandemic, many were focused on transforming from a cost center to a profit center, “Taking on responsibility for cross-selling and upselling.” But then the pandemic hit, and with it came massive disruptions across industries and enterprise organizations. According to Forrester, as customer needs grew throughout 2020, customer service leaders focused their efforts on creating “experience centers” that were holistic in nature, designed to meet customer expectations versus simply resolving customer service issues.
“The purpose of customer service is no longer just to alleviate run-of-the-mill inconveniences; it is to provide fundamental and necessary services for consumers devastated by the COVID-19 pandemic,” writes Forrester Principal Analyst Ian Jacobs. As we move further into 2021, Jacobs says customer service teams must not only reduce customer frustration, but advocate for consumers.
One of the biggest upsides to these shifts in customer service is that, not only will it elevate your customer service capabilities, studies show it will have a measurable impact on multiple business outcomes. The reality is, truly great customer service has always been about more than simply resolving customer issues. Companies that have been able to deliver exceptional customer experiences throughout the customer journey know the positive impact their customer service centers can have on the bottom line.
Elevated customer service programs move the needle every time
Customer service has always played a key role in brand loyalty and served as an effective revenue driver when done right. McKinsey found that customer journeys designed to raise customer-satisfaction scores reduced operational cost anywhere from 15% to 20% and boosted employee engagement by 20%.
McKinsey is not the only research firm to emphasize the benefits of improved customer-satisfaction scores. More than five years ago, Bain & Company reported businesses that deliver better customer service experiences regularly saw revenue lifts of 4% to 8% above the market average and improved customer retention rates that resulted in anywhere from 25% to 95% in increased profits.
“Improving CX can be massively worthwhile,” writes Forrester Principal Analyst Maxie Schmidt, “For example, for mass-market auto manufacturers, improving CX by one point can lead to more than $1 billion in additional revenue.”
Why improved customer service drives ROI
How does exceptional CX and elevated customer service programs render such noteworthy returns? Because customers who feel they have been treated well are more likely to spend more money with a brand.
“For a company that provides good service, 66 percent of customers would be more loyal, 65 percent would be willing to recommend the company to others and 48 percent would spend more money,” according to Forbes.
American Express’ Customer Service Barometer supports Forbes’ reporting, finding that 7 out of 10 U.S. consumers said they would spend more money to do business with an organization that provides an improved customer service experience. Not only does improved customer service drive higher customer-satisfaction rates and more revenue, it can help you win back customers after a not-so-great experience, with studies showing 70% of customers would likely shop with a business again if it went out of its way to resolve an issue.
The ultimate competitive advantage: Your customer service center
What do all of these CX stats mean for enterprise organizations? Product prices and quality may bring the customer to your door, but your customer service strategy gives you the competitive edge. The customer experiences you build — and your ability to monitor and operationalize them — will make or break your business, and the data proves it.
When you deliver amazing customer service programs, you are more likely to drive higher customer retention rates, more brand loyalty and increased revenue gains. Customers are more likely to refer your brand and products to their friends, and your employees are more likely to be engaged. It’s a win-win for both sides — the brand and the customer.
But, to do CX right, enterprise organizations need a sophisticated customer experience platform that makes it possible to deliver exemplary customer experiences, monitor those experiences as they happen, collect deep insights on individual experiences and act on those insights in real-time. The right technology solution should act as an anchor for your overall CX strategy, helping you deliver exceptional customer experiences across the full customer journey.
Experience.com knows that every experience matters, that’s why we designed our CX management platform for enterprise organizations, combining customer experience and employee experience solutions. Our technology gives brands the ability to collect feedback from customers and employees alike, analyze the data and act on the most impactful insights — a three-prong approach that empowers businesses to deliver amazing customer service every time.