We now live in the most information saturated society in history. And can you guess what kind of information people DON'T want to see more of? That's right...advertising. Business owners need advertising; we can't stay in business without it. But customers have had enough of it. It's getting harder and harder to get people's attention these days...not to mention expensive.
I’ve seen PPC campaigns where companies are paying up to $10 for just a few seconds of someone’s attention. Even successful companies sometimes have to be willing to take a loss on their initial sales so that they can gain a new customer and make up their profits on the back end.
Considering this, how important do you think customer service is going to be in creating sustainable business growth? Will you be able to make enough new sales to make up for what you’re missing in customer retention and in follow up sales? Seems like risky business doesn’t it? More companies are realizing just how risky and unsustainable it is to depend heavily on new sales to keep cash coming into their business.
Many of them are realizing that customer service is the new trump card for growing your business, here’s why…
The Problem With Having Weak Customer Service
Bad customer service can cost you more money than bad marketing. Bad customer service forces you into a position where you have to make most of your profits from new sales. It forces you to constantly chase after new business because you’re not getting enough repeat business. And if you depend too heavily on new sales, you’re going to have low profit margins, high customer acquisition costs and periods where you have NO Cashflow because you have no new business coming in.
Does this sound familiar? If so, is it really a good idea to keep trying to make up for the lack of profits by making new sales? What if you could lower your refund rate, get more repeat business and more referrals AND more positive reviews written about your company? Isn’t that how businesses are grown? It’s word of mouth marketing, and every business that’s exploded past the small business level has leveraged word of mouth marketing.
Unfortunately, it’s getting harder and harder to get repeat business, referrals and to get your customers saying positive things about you without creating an amazing customer service experience. So what will it take to create customer service experiences that will explode your business growth and get you out of the trap of struggling for new sales? It starts with knowing what modern customers really want.
What Do Modern Customers Really Want?
There are four things which modern customers practically demand when they spend their money with a company:
1. Fast delivery
2. Accurate delivery
3. Fast resolution of problems
4. Accurate resolution of problems
Notice a pattern here? People want speed and accuracy. That’s no easy task to pull off when it comes to customer service, but if you can get these two working for you, you’re only one step away from creating magic with your customer service and fulfillment. Once those are in place, the last step is to create an amazing experience by treating the customer like a king. But you have to meet their primary needs for speed and accuracy first.
Is your fulfillment house doing this? If not, you’re probably always going to be struggling to scrape your profits off of new sales. Meanwhile, your competition might have a dynamite fulfillment and customer service machine that brings them loads of profits on the back end. These competitors will be able to outspend you on marketing because they can make it up on the back end.
Why let your competition have that kind of advantage? If your fulfillment provider isn’t helping you create sustainable growth by leveraging great customer service, you need a new provider.