Customers are the most important stakeholders in any business. They’re the people who decide whether to purchase your products, use your service or visit the next store. Their behavior and choices will have a huge impact on the success of your business. When customers like what your business is offering, research shows they tend to show loyalty and stay with you.
But what contributes to this loyalty? There are many answers to this but the two most important factors are customer service and customer experience. This is why many companies invest in service management software applications like the one offered by Jobber to enhance both their services and the experience of their customers. Unfortunately, not many people understand the difference between the two and how they’re intertwined.
If you are unsure how the two aspects are vital to the strength of your company and brand, then this article is for you. Keep reading to learn more.
Customer service vs customer experience
Before discussing why you should care so much about customer service and experience, it’s important to understand how they’re distinct yet intertwined. This way you’ll be able to appreciate each aspect separately and know how to best offer a level of service that improves how customers perceive your brand and therefore, your business.
Customer service refers to the act of advocating for and assisting your customers before, during, and after the purchase process. This can be provided through human agents or chatbots depending on the structure of your business. In the example of a small flooring business, for instance, your agents can use a bespoke flooring estimate template to create and send a branded estimate to potential customers as part of the purchase process. This way, customers will know which services or products they’re going to pay for and what they’ll receive at the end of the day.
The customer experience (CX), on the other hand, is all about the customer’s interactions with your company. It also refers to how the consumers perceive these interactions and the services offered to them in the process. Some of the factors that determine CX include the ease of access to your services, agents’ communication skills, quality of the products, and the complexity of the checkout process.
Why you should care about these aspects
You’ve probably seen many companies invest a lot of resources to improve customer service and customer experience. But why is it important to prioritize these factors in your business operations? Here are some of the reasons:
- They both increase your revenue
The primary goal of every business is to generate as much profit as possible. Since customers are among the main stakeholders, one of the ways to increase your revenue is to prioritize their needs. Investing in excellent customer service and customer experience will give you a better chance of meeting that goal.
For instance, when you hire qualified agents, you’ll be strengthening your customer service department. Proper and fruitful communication skills by your agents build a great experience for your customers. When potential clients feel at home when interacting with your agents, they’re highly likely to purchase your products which, in the long run, will increase your sales significantly.
- Enhance customer retention
Customers like to stay where their demands are met the way they like. With good customer service and experience strategies, your business can effectively cater to the needs of your clients. By creating an environment where consumers receive a unique, satisfactory, and unforgettable experience, you’ll be able to retain both existing and new customers.
When a customer gets such treatment the first time they visit your store or experience your service, they won’t hesitate to come back again when they need the same product or service in the future. This way, you’ll be increasing customer lifetime value (CLV), which is a great way to drive growth since retaining existing clients is easier than attracting new ones. In fact, research shows that customer service and customer experience are the best ways of increasing your CLV.
- Improves your brand’s reputation
Do you want to build your reputation in the market? One of the best ways to achieve that is by strengthening your customer service and customer experience. Brand reputation is all about how customers perceive your products and services. When a prospect walks into your store for the first time, how you treat them will go a long way towards the success of your business.
Great customer service contributes to a positive CX, which then makes a customer more likely to recommend your company to their friends. Remember, for prospective clients overwhelmed with a lot of options in the market, a suggestion from a friend or family usually tips the scales. So, as a ripple effect, your brand will be able to attract more customers without investing a lot in your marketing strategy.
For your business to grow by leaps and bounds, you need to prioritize the needs of your customers. You do this by first enhancing the services you offer to them and their experience as they interact with your business. Doing so enhances customer retention, and brand reputation, and may also increase your revenue. So, be sure to consider both customer service and experience in your growth strategy.
She works as an editor at Research Snipers.