Customer Service Improves Sales
Henry Ford said ‘The only foundation of real business is service’. In many companies, the customer service function sits outside of the sales channel as it is seen in some way inferior to sales. Yet customer service is integral to sales success. Without good customer service there will be no repeat sales, and repeat sales are the most profitable revenue any company can generate. Managed IT Services Markham
The selling process is not complete merely because the customer has stated that he or she will buy your products or services. Throughout the entire selling process, the maintenance of goodwill is important, but even more so after the purchase. Regardless of your customer’s previous feeling towards your company, the experience they have after they have bought will have a significant impact on future sales. Customer service doesn’t complete the sale; it reignites the sales cycle. A worthwhile maxim to adopt is: ‘a customer cannot be regarded as satisfied until we get their next order.’
Whilst customer service represents the last element in many standard sales processes it could also be argued that it is the first element in a recurring sales process. Ask yourself:
- Did I ensure that the agreements reached with the customer actually happened?
- Did I attempt to up-sell?
- Did I ask for a referral?
- What records are kept and maintained?
- What feedback did I get about how the customer benefited from my product/ service?
- How could customer service be improved?
Why Is Customer Service Important?
There are a number of empirical studies on the value of customer service and the effect of repeat business on the bottom line. Frederick Reicheld and Earl Sasser said that ‘if companies knew how much it really costs to lose a customer, they would be able to make accurate evaluations of investments designed to retain customers’. They found that customers become more profitable over time as increased sales; reduced costs of distribution; referrals; and the opportunity to up-sell all add to the bottom line.
Heskett, Sasser, and Scheslinger collaborated on a training programme to assist managers in understanding the lifetime value of customers and in addition advised on the importance of developing a culture whereby employees are engaged to contribute to the value chain. They postulated that employee satisfaction leads to service value which produces customer satisfaction and which in turn results in profits and growth. It is hardly surprising that happen employees produce happy customers.
What is Customer Service?
Is it just about smiling and being nice to customers? It’s a good place to start but it can’t just be about that.
It is generally accepted that it is very difficult to deliver high standards of customer service. Some say we have not been educated for it – it is not our tradition. This observation is often justified by stating that since late Victorian and early Edwardian times fewer and fewer people have worked in ‘service’. What was a major employment sector in those days has now dwindled to almost nothing.
While this has happened, employment has increased in manufacturing, sales, administration, information technology, and social sciences. Through the years ‘working in service’ came to be regarded as a dead end job that nobody wanted and would only take as a last resort. As a result, the label ‘service’ has almost fallen into disrepute, and many people see giving service as something beneath them that lesser mortals do.