Most business owners spend countless hours searching for ways to acquire new customers. Unfortunately, few dedicate as much energy to keeping the ones they already have.
Most business owners believe they can only grow by obtaining new customers. In reality, you have only a 5 to 20 percent chance of selling to new prospects, compared to a 60 to 70 percent chance of acquiring business from existing customers. That's a big difference that should encourage greater investment in retention tactics. But what is the best way to strengthen a relationship? In almost every situation, the answer is better customer service.
According to recent surveys, customer satisfaction is at an all-time low throughout most of the country. While the reasons can vary from person to person, most agree on a few specific culprits. The Consumer Reports National Research Center recently surveyed over 1,000 adults, asking them to rate specific customer service irritants from "tremendously irritating" to “not annoying at all." After reviewing the options, respondents rated the following as the greatest turn-offs.
75% - Unable to speak with live person on the telephone 75% - Rude or condescending customer service representatives 74% - Getting disconnected during a call 71% - Unable to speak with the same agent after getting disconnected 70% - Getting transferred to an agent or department that cannot help with a problem 68% - Companies that hide or fail to provide a customer support phone number 66% - Excessive hold times 66% - Excessive phone-menu steps 66% - Being asked the same information repeatedly 65% - When agents offer inappropriate or useless solutions 64% - Being ignored by salespeople 62% - Not knowing whether disconnected or on hold 62% - Not being allowed to speak to a supervisor 61% - Needed option missing from phone menu 61% - Poorly-functioning voice-recognition system 60% - Getting a sales pitch for unrelated services 60% - Pushy salespeople If your customer service has any of these traits, it's time to make changes. Depending on your organization structure and budget, this might mean hiring more personnel, conducting rigorous training or outsourcing to an executive-level customer service provider. Whatever the case, it's clear that an investment in customer service can go a long way toward increasing your overall revenue by improving retention rates.Investing in Better Customer Service