What is customer loyalty? Why does it matter?


Is great customer service really worth the effort?

The rewards of great service

A variety of research shows that today’s customers place a priority on receiving great service.

A 2011 report published by American express revealed that 3 out of 5 customers were willing to give up a former favorite brand in order to have a better service experience.

Even more telling are the results of the 2010 Right Now Customer Experience Impact report, which revealed that 9 in 10 Americans are willing to spend more with companies they believe provide excellent customer service.

Eighty percent of respondents shared the belief that smaller companies place a greater emphasis on service than larger companies, meaning …

Small business success is highly dependent on the satisfied customer.

The way that small business owners can beat out big-box stores isn’t to compete with them on the things they are good at (e.g., low prices, logistics, etc.); it’s far more important to out-support your competition by providing a level of service that they just can’t match.



The high cost of bad service

“News of bad customer service reaches more than twice as many ears as praise for a good service experience.” – White House Office of Consumer Affairs –

Will bad service really scare customers away from your business? The data presents a strong case for a resounding “yes.”

Consumer Reports surveys have shown that nearly 91 percent of customers will not do business with you a second time if you botch the first encounter. It was even uncovered that two-thirds of customers have walked out of a store when they felt the service was sub par.

The amount of customers willing to immediately abandon a business reached nearly 70 percent when it came to poor service on the phone, conclusively showing that customers are willing to shut you out if you don’t provide the quality of service they expect.

The worst part: You may not know how much of an impact your poor quality of service is having before it’s too late.

The White House Office of Consumer Affairs revealed a startling statistic on how service can silently affect your bottom line:

“For every customer who bothers to complain, nearly 26 others remain silent”

If you continue to provide subpar service, you may start losing customers without warning.

What this means for your business?

By now you’ve seen that building loyalty among your customer base is more important than ever before.

Your sales team will continue to have less control in informing and guiding customers through a sales purchase. Given the “always on” nature of the web, product information, reviews, and even access to your competitors are all just clicks away from a prospective customer’s fingertips.

Top-notch companies see this as an opportunity, not a dilemma. Recent consumer data from a Peppers & Rogers study showcases how leading business are also leading the charge for great service:

81% of companies with strong capabilities and competencies for delivering an excellent customer experience are outperforming their competition.

Will you be among them?


Source: https:// www.helpscout.net