Nobody goes into business expecting to fail. Every business venture is built on the hope and expectation of succeeding. While this is essential for the business mindset, Elijah Norton believes that this is an incomplete and dangerous approach.
Business owners often make the mistake of focusing on just a few aspects of the business, such as products, services, and profits. Years of building and growing his own business have taught him that business success rests on a key component that should never be ignored. This key component is customer service.
Why Customer Service Matters
The modern business landscape demands a more customer-focused and quality-driven approach in the face of increasing pressure from competition. Even niche industries experience this, thanks to new business models and opportunities made possible by technology. The business that will succeed will be the one that ensures high customer satisfaction. Here are the reasons why:
Happy Customers are Loyal
Loyal customers are gold. Since they have already established a relationship with the company, their buying habits, preferences, and interests are easier to predict and satisfy. Furthermore, loyal customers equate to sustained profits. Loyal customers are more likely to purchase more, hence increasing their lifetime value.
With a loyal following, a company can build a solid customer base that can be relied upon regardless of market conditions. They are also excellent sources of referrals through word-of-mouth, recommendations, and reviews, thus enhancing a company’s bottom line further.
The majority of a Company’s Sales are From Satisfied Customers
According to Small Business Trends, 65% of a company’s sales are from existing customers. On top of that, selling to an existing customer has a 60% to 70% probability of success. Contrast this with potential customers who have a measly 5% to 20% chance of buying for the first time.
On top of that, about 80% of a company’s future profits will likely be sourced from just 20% of existing customers. Elijah Norton, in an interview, stresses the importance of providing a great experience to customers. Ultimately, he says, there is a payoff that companies will benefit from.
Being the Best Equates to Direct Profit
Great service has no specific price. However, what is known is that customers are more than willing to use a company’s services or products when they have a stellar performance in service, even if it charges a premium price. Elijah Norton explains that it is about perceived value.
When customers place a high value on the treatment and service they receive from a company, they are more likely to patronize a product or service. Customers will always prefer a more expensive product that gives them a better experience than a cheaper one, wherein they do not feel valued.
Retaining a customer is far cheaper than acquiring a customer. A company that does not invest enough in customer service is more likely to spend more on customer acquisition. There is a reluctance among business owners to include customer service in their list of expenditures because of the mistaken belief that it brings nothing in terms of return on investment.
However, establishing a solid customer service foundation today will allow a company to create a business model that can make room for future needs. A business with a solid customer service strategy is prepared for anything that could happen. Any future issues about unhappy customers will be easy to manage and resolve.
A 2020 Insight Report by Qualtrics XM Institute involving a survey of over 1,290 executives from the U.S., the U.K., Canada, France, Japan, Germany, Singapore, and Australia showed that 89% of companies that offer above-average customer service have better financial performance compared to competitors. Retaining customers is key to business survival and success. In fact, U.S.-based companies lose an estimated $136 billion annually due to customer losses that can be avoided.
Valuable Insights From the Customer Service Team
The customer service team works directly with customers. Through their interactions, the team has the best vantage point when it comes to identifying customer needs. This is why customer service teams should value reviews and comments from customers because these are valuable for improving products, re-designing marketing strategies, creating and modifying company goals, and implementing the proper training for employees.
This is a cycle that will ultimately benefit the company. By improving customer experience, companies can keep themselves updated with the current trends, learn about changing customer needs, and create innovative solutions. Insights from the customer service team also allow companies to create and adopt a proactive customer service strategy, allowing them to always be one or two key steps ahead of any potential issue or problem.
Are You Capable of Excellent Customer Service?
Do you have a great idea? Couple that with excellent customer service to rise above the competition. Elijah Norton and Veritas Global Protection know the importance of great customer service.
It is more than just providing care to customers – it is also about ensuring the sustainability of the business. Elijah Norton knows there is nothing that a customer wants more than a company that provides value.
When customers feel they are being cared for and that the company listens to their needs, they give back in terms of loyalty. Businesses should learn to embrace the fact that much of their success is dependent on customers who believe in them and are willing to offer their support.
Elijah Norton has applied this approach to Veritas Global Protection. He credits their stability with the establishment of excellent customer service at the inception of the company. Elijah Norton and Veritas Global Protection have continued to offer stellar services to their customers by creating service plans designed to address both common and unique needs, ensuring that customers’ requirements and expectations are met and even exceeded.