Investing in effective customer service is necessary to ensure that your company has a bright future. When done well, quality customer service translates to higher customer lifetime value and positively impacts your bottom line.

Improving your company’s customer service approach means focusing on the dual strategy of:

1. Listening to the voice of the customer  
2. Proactively addressing customer journey friction points that your customers may not be aware of 

This strategy requires innovation and creativity, and it’s the reason why many brands choose a contact center outsourcing partner to bring fresh ideas, new technology, and proven pilot projects to the table. By helping you deliver customer service that improves customer retention, reduces customer acquisition costs, and leads to more loyal customers, the right partner can help your company understand why customer service is important to any long-term business strategy. Ultimately, exceptional customer service resolves issues and builds lasting brand loyalty and trust.

Why Customer Service Is Important

People with positive customer service experiences with a company are more likely to return and become repeat customers. Customer loyalty studies show that customers who had an issue that was rectified by the company are 30% more loyal than customers who never had an issue! This phenomenon, known as the service recovery paradox, shows how a thoughtful resolution can transform a potentially negative situation into an opportunity to increase customer loyalty.

These valuable interactions are best left to a skilled customer service team composed of people who can connect with the customer on an emotional level, rather than to a bot. According to customer service experience guru Shep Hyken, the most likely reason customers defect from a brand (upwards of 70% of the time) is when they feel that the brand doesn’t care about them. 

When customers feel valued, they’re less likely to switch to competitors, reducing churn and enhancing long-term profitability. And when customers feel appreciated and have positive interactions with a brand, they are more likely to upgrade their purchases or buy additional products and services, driving business success.

Customer service is important because it’s so closely linked to employee experience. When employees see their organization prioritizing excellent customer service, they feel more engaged and motivated to deliver better service. A strong, customer-centric company culture fosters a positive work environment, leading to higher employee retention and productivity. Satisfied customer service agents deliver outstanding customer service that creates a cycle of trust and satisfaction.

Keeping in mind why customer service is important, organizations must implement strategic initiatives aimed at improving interactions across all customer service channels. Here are some effective strategies:

1. Understand Customer Needs Through Data and Feedback

Customer feedback is a goldmine for improving experiences. Researching and actioning feedback demonstrates your commitment to increasing customer satisfaction. Feedback gleaned through surveys, reviews, and direct outreach, using tools such as surveys or social listening platforms, can be valuable sources of insight. 

Analyze the feedback carefully to identify recurring themes and categorize each area according to effort and impact from low to high, prioritizing changes with the most significant impact and the lowest effort. Once changes are made, close the loop by informing your existing customers about the improvements inspired by their input. This builds trust, reinforces company values, and highlights the importance of customer service toward your brand’s success.

2. Seek to Personalize and Customize

The bar for personalized customer service has been consistently raised over the years, and that’s a good thing. Award-winning serial entrepreneur Daniel Priestly claims that American consumers are stressed out and overwhelmed by the massive amount of stuff they own. For many, the thought of adding new products to their already cluttered homes is a psychological barrier to purchasing more unless the customer feels confident that the product is a necessary and tailor-made fit for them. 

Businesses can use AI and machine learning in the contact center as part of their customer service automation strategy to offer personalized recommendations and customized product offerings, such as popping up suggestions to customer service representatives in real-time. These tailored interactions help build trust, retain customers, and encourage customers to engage more confidently with your brand.

3. Partner with an Outsourced Contact Center

The advantages of contact center outsourcing are many, but include lower cost to serve (particularly in the case of nearshore and offshore contact centers), access to an objective customer support team, and creative solutioning ideas. Allowing a trusted partner to assess and recommend process and technology changes to resolve complex customer issues allows you to focus more on overall CX strategy rather than being mired in the operational weeds. 

Outsourcing can also help you scale faster and deliver high-quality service across all channels. This ultimately leads to a more positive customer experience and helps create more loyal customers. Just make sure your partner offers the flexibility needed to meet your goals and uphold your standards for providing excellent customer service.

4. Offer a Seamless Omnichannel Experience

Customers interact with brands through various channels, including websites, mobile apps, social media, and physical stores. Ensuring a seamless omnichannel experience helps maintain consistency in messaging, service quality, and meeting customer expectations across all touchpoints. Businesses should integrate their digital and offline experiences to create a cohesive journey for customers. 

The in-store and out-of-store CX should always align. This thoughtful, connected approach shows why customer service is important. It builds trust, improves satisfaction, and supports great customer service no matter where or how the interaction takes place.

5. Continuously Improve and Innovate

Customer expectations evolve over time, so organizations must continuously innovate to stay ahead. Regularly updating products, services, and helpful customer service practices based on market trends and customer feedback helps maintain relevance and competitiveness. This is also where a trusted contact center outsourcing partner can help provide technical support, handle customer inquiries, and provide exceptional service.

Organizations that prioritize the customer experience are poised to maintain a competitive advantage. That translates to loyal customers, increased revenue, and a stronger brand reputation. By investing in customer insights, personalization, omnichannel experiences, and contact center outsourcing partnerships, businesses can create more meaningful interactions that drive repeat business and long-term success.

Customer service is important. For more information about how Advensus can support your efforts, contact us.