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How Customer Service Impacts Your Customer Retention

Customer Retention
Customer Retention
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If you have been focusing on your promotional efforts, now is the time to give customer service the attention it deserves. Good customer service is about more than smiling and asking customers if you can help them find a particular product; it’s about making the customer feel special. Great service even helps you improve customer retention, which has six key benefits.

Building Customer Loyalty

Bruce Ernst says “The customer is the center of your universe.” If you remember this wisdom during each customer interaction, you’ll have an easier time building loyal relationships. Loyal customers will return to your company again and again, even if you charge slightly more than your competitors. This makes good customer service essential for every company.

Improving Customer Satisfaction

If you want to build strong relationships with influential people in your industry, your products and services must meet their needs. For best results, your company’s offerings should actually exceed the customer’s needs. Companies that focus on providing excellent service do a better job surpassing customer expectations, increasing customer satisfaction across the board.

Generating Referrals

Some businesses rely very heavily on referrals to meet their annual revenue goals. If your customer service isn’t up to par, your existing customers aren’t very likely to refer their friends or colleagues to you. Exceeding expectations and making sure every encounter is a positive one, however, will help you generate high-quality referrals from happy customers.

Reducing Customer Acquisition Costs

Acquiring new customers is one of the biggest expenses in any organization. It costs several times more to sign a new customer than it does to sell additional products or services to a current customer. Providing excellent customer service helps you improve customer retention, eliminating the need to spend most of your resources on finding new clients.

Increasing Market Share

In some cases, unhappy customers are willing to give your company a second chance. Unfortunately, some people simply take their business elsewhere when a product or service provider fails to meet their needs. By focusing on customer service, you retain more customers, reducing the likelihood that you will lose business to one of the major players in your industry.

Related Post: Excellent Customer Service: What Call Center Agents Do Best

Improving Employee Satisfaction

Believe it or not, your employees also benefit from working for a company that focuses on delivering excellent service. When you put the customer first, customers are less likely to become irate or upset with workers, making employees happier. Happy employees are more likely to deliver excellent service, improving customer retention and reducing turnover.


With the right tools and support, your customer service team can increase customer retention, enhancing loyalty and helping your company generate high-quality leads. If you don’t have a service team in place, or you need help establishing new policies and procedures, contact our team for assistance. We’d be happy to help your business with customer retention services.

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