Editor’s Note: Lucy Benton is a marketing specialist and business consultant who contributes to Awriter. Today she joins us to explain how online businesses are passing up major profits by skimping on customer support, and how to avoid that mistake.
Every online business has two major goals: sell products or services to customers, and support their continuous use. The first goal increases profits, while the second one works to retain existing clients and attract new ones. Exceptional customer support is a great way to accomplish the second goal because it helps you to meet the expectations of your market, and goes beyond that to building loyalty and improving your reputation.
Surveys have indicated that many online businesses fail to answer 50% of inquiries fielded to them by existing customers, so it’s clear that some companies neglect customer support, perhaps to avoid the costs of maintaining support representatives. But on average, it’s 7 times more expensive to acquire a new customer than to keep an existing one.
That’s a very big difference, and so are the losses which result from poor customer support. According to NewVoiceMedia, businesses in the U.S lose out on $41 billion in revenue every year thanks to this systemic oversight.
In this post, we will analyze several reasons why an online business should invest in customer support, and key takeaways that will help you to build a better support team, and avoid an unnecessary dip in profits.
Reason #1: positive customer experience is more valuable than price
Online surveys continue to find that customers regard service and support as more important factors than price. For instance, a 2014 customer experience study by American Express suggested that more than 60 percent of customers were willing to spend more with an organization that provides better service than competitors.
According to the same study, only 5 percent of online shoppers reported that customer support ever exceeded their expectations. It stands to reason that online marketers are losing $41 billion per year as a result.
The statistics don’t lie: when online businesses show customers that they are valued and appreciated, the feelings go both ways. Eventually, people develop loyalty for a company based on good experiences.
The takeaway: customers are willing to pay more if they are valued by a company. Make an active effort to treat customers as people, address needs and concerns, and improve relationships with them.
Reason #2: exceptional customer support builds awareness of your brand
Mark Zuckerberg calls a trusted referral “The Holy Grail of advertising,” and there are good reasons for that. First, word of mouth is one of the most powerful influencers on purchasing decisions. It’s human nature to seek out testimony, and judge based on the experience of others.
Second, more than 80 percent of online customers trust the opinions of their family members and friends about the products and services of particular companies, according to the Nielsen Global Trust in Advertising Report.
As such, it makes sense that <a target="_blank" rel="nofollow" href="https://www.onlinemarketinginstitute.org/classes/social-media-marketing-classes/brand-advocacy-strategies-using-social-media/" target="_blank" Go to the full article.
Source:: Online Marketing Institute