Customer Service Impacts your Bottom Line

April 22, 2014 | Don Pottinger

Last updated on April 24th, 2020

“Customer service needs to be a priority” …I think we’ve all heard this and can fully, undeniably agree that customer support is an important part of your business.

good vs bad

But do we all agree on why? Can you provide evidence that customer service is actually impacting the bottom line of your business?

Not too long ago one of our partners, Zendesk, a customer service platform, published a blog post on “The good,  the bad and the ugly: impacts of customer service.” From the stats it is pretty clear that customer service can have both positive and negative impacts – lets take a look at a few:

How does customer support impact your business?

Edge out the Competition

24% of buyers will choose your service over your competitors for up to two years, just based off a great customer support experience.

Most people when surveyed described good customer support as “The person who helped me was super nice and my issue was resolved quickly”. So just by responding to an issue quickly, staying on top of communication and doing it all with a smile on your face  (whether genuine or forced) – you are helping your sales team beat the competition and gain more customers.

Create additional Up-sell and Cross-sell Opportunities

52% of buyers said that a good customer service experience led them to purchase more from that company.

Most people look at up-selling and cross-selling as a direct function of the sales team, but in reality it may start with customer support. You, as a support rep, are adding to the bottom line of your company and directly impacting sales quotas.

Reduce Churn

55% of customer said they switched to a different company after having a bad customer experience.

WOW! If you continuously hear reviews that your customer support is less than stellar that could mean you are losing more than half of your support tickets to your competitors (ouch!). Don’t loose customers to competition when it can be easy to keep them. Unfortunately, customers tend to get a little…mean… after experiencing a poor customer service experience. And a negative review is exactly what your competitors are dying to find to use against you.

Increase you Social Media Awareness…Negatively

88% of buyers have been influenced by online customer service reviews when making a buying decision.

You might be thinking, “we’ve had lots of emails from unhappy support cases but I’m sure those people didn’t say anything publicly.” Think again! 95% 0f customers that have had a negative customer service experience share that experience. Over half share it on social media for the world to see. I’m sure your marketing team loves when there is a buzz about your company and product, just not that kind of buzz.

It’s hard to argue with the facts, with stats like those it is clear that customer service affects your business outside of your help desk! If you are in a customer service role next time you go to help that angry customer remember, the exchange you have with that person could either positively or negatively affect the bottom line of your business!