Why Online Businesses Need Great Customer Service

In a market where businesses compete over customer experience and where customer reviews can make or break a company, it’s not enough just to have a good website. To be successful, online businesses need to back this up with great customer service. Here, we explain the reasons great customer service is so important.

It’s what customers expect

Customers, whether existing or potential, have become accustomed to good customer services and expect all the brands they shop with to provide it. A key aspect of CX, almost 85% of people say it is important to them when choosing a brand and, for many, the quality of customer service is often of more value than brand reputation, the cost of the products or services or the convenience of shopping with you.

It can save money

Investing in your customer service can actually save your business money in the long run. The reason for this is that the cost of customer acquisition is far greater than the cost of customer retention. With so much online competition around today, acquiring a new customer can be expensive in terms of the amount of advertising revenue you need to spend. To make this spend cost-effective, it is important to keep hold of customers and have them returning. If you spend £40 to attract a new customer and they never come back, that’s a lot of investment for a one-off sale. If they come back and shop 20 times in total, that initial £40 works out at £2 a sale, which is far more profitable. Research has shown that over 90% of customers will return and stay loyal if they experience great customer service.

Increase sales and prices

Not only does great customer service keep customers returning; it has also been shown to increase the amount of money they will spend with you each time they shop. Indeed, not only does good customer service encourage consumers to buy more things per visit, 86% of them are willing to pay more for your products, up to 16% more, if the customer experience is great.

Stops you losing customers

With customer experience being the main area over which businesses compete in today’s market, providing second rate customer service can cause existing customers to abandon you for your rivals. Recent research indicates that over 60% of consumers admitted to ditching a brand because they were unhappy with its customer service. – Read more

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