Why is Customer Service Important?

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Why is Customer Service Important?

on Wednesday, 27 July 2022. Posted in Tips

Why is Customer Service Important?

Customer service is important because it can help maintain or improve customer loyalty and satisfaction, which can extend your customer lifecycle and lifetime value. So why are businesses focused on acquiring new customers? In this article, we will cover 6 reasons why customer service is important and how it can help drive your business sales.

What can customer service help me do? 

Focusing a large part of any business in supplying a great customer service experience to your clients and customers can be a great way to increase customer loyalty, positivity around the business and word-of-mouth marketing. 

6 reasons why customer service is important 

Customer retention 

Customer retention is an important part of maintaining a successful business, with many companies overlooking it as a profit funnel they can optimise. Elastic path have reported that acquiring a new customer, with no previous experience with your business, is five times more expensive than retaining an existing customer. 

Increase customer lifecycle 

Improving the way your customers can communicate with your business can be a great way in prolonging their customer lifecycle.

If we look at the customer lifecycle model from smartinsights, you can see that when attempting to create lapsed or loyal customers, customer service is mentioned in two of the four techniques businesses use. The two they mention are “social customer service” and “1st class customer service”.

Address business issues 

When running or growing a business, issues will arise, both internally and externally. Having a well established customer service department can be a great way to hear your customer's opinions and, in some cases, ideas to improve your business.

This can also help streamline your service, leading to further sales.

Positive reviews 

According to brightlocal, 87% of consumers read online reviews for local businesses, and 40% of consumers will consider leaving a negative review after a poor customer experience, whilst 67% of consumers will think about leaving a positive review after having a nice customer experience. 

The evidence is clear to see, reviews matter! Typically, when frustrated with a service, many consumers may reach out to a business through their customer service. If this process is frustrating, or complicated, the chances of receiving these negative reviews will increase. 

Adding further features to your businesses' customer service may worth thinking about. For more information on the features you can add, please feel free to check out Virtual Landlines feature list today. 

Increased conversions 

Increasing the quality of your customer service can be a great way to improve your businesses' conversion rate. 

Giving your customers a customised customer service experience through the use of detailed features, such as an IVR auto-attendant or a Virtual Receptionist, can give your clients the service they deserve, increasing brand loyalty and conversions.

Adds value to your business 

As we have mentioned before, improving your customer service can be a great way to add value to your business. 

Through positive customer experiences, positive reviews and addressing your businesses potential issues can help your business turn into a company with a growing reputation.

This can have many perks, including confident employees and loyal customers. 


To conclude, spending a part of your businesses resources in improving your customer service can be a great way to improve customer satisfaction and retention. 

Interested in our customer service or landline services? Please take a look at our tariffs or get in contact today. 

For more information regarding business and phone systems, please visit our blog section.


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