CLTV correlates directly with revenue. Customer retention carves the clearest path to business success. Her goal is to help businesses grow by offering practical and actionable ways to improve customer experience. Of course, your product team could use some financial assistance and marketing -- especially advertising -- could always use a little padding. So does product, tech, design, distribution, marketing, sales, manufacturingâ¦ and the myriad of other resources in your company. Growing this value means that your customers are shopping more frequently and/or spending more money at your business. Your customers can be your best -- and cheapest -- form of word-of-mouth advertising, as long as you give them a reason to do so. It's not just for all the obvious fiscal reasons. Only then will they find intrinsic motivation for doing a good job and serving their customers the right way, which will lead to your customers also feeling more respected and appreciated. They will then be more likely to come back and transact with your business again. It doesn't matter how you perceive your brand. These are statistics that can't be ignored. Free and premium plans, Customer service software. When your business is on a low budget, there are probably several functions that are high-priority when allocating funds. Place the ultimate emphasis on your customer, then move through each department to align them behind customer service. But if you can provide a seamless customer service experience, people will be forgiving. Yes, service matters. Churn measures the amount of customers who leave a business after purchasing. But do we know exactly why it’s important? (For one, itâs got âcustomerâ in the name. Customer service experience goes beyond call centers and emails. Instead, it's about maintaining their professionalism and integrity, not wanting to get fired before quitting, being empathetic to customers, but getting recognition from them in the end. Customer services play a vital role in the hospitality industry, it is the ‘backbone of any industry’ (Andrews). But, proactive customer service isn't just used for customer delight. Normally its importance varies by product, industry and customer. Understanding why is customer service important is the first step in delivering exceptional service. So, by interacting with your customer service team, those customers can build, hopefully, life-long relationships with your business. 56% of people would recommend a company with excellent service to family and friends. For banks to thrive, both product and service delivery must be adequately aligned with customer expectations: achieving customer satisfaction and loyalty is essential for long-term survival (Reichheld, 2003). If you're running a business, customer lifetime value (CLV) is a pretty important metric. For example, the Ameritas group division that handles dental, vision and hearing care insurance, has a strong track record for taking exceptional care of its customers. Highly engaged customers buy 90% more frequently, spend 60% more per transaction, and have 3 times the annual value compared to other customers. Brand awareness soars with positive customer experiences, 9. Pick a few customer-related metrics to measure, and track revenue in parallel, to see the connection. Create a mission-driven company where employees return everyday to find new ways to please the customer. In comparison to, possibly, hundreds of competitors with similar products and services, your company has to do more than relish in the exciting features of your products. Letâs dive into the 11 reasons why customer service is important and how to correlate it with business resultsâ¦. By providing stellar customer service, you can differentiate your company to customers. 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