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What is the relationship between customer service and business success? Originally released on Quora: the place to gain knowledge and share people to strengthen people to learn from others and understand the world better .
Answer by Gaetano Dinardi, director of demand generation at Nextiva, on Quora:
While companies speak a lot about the meaning of customer service, there is a surprising confusion, how important it is that it is really a business success. After all, some companies are profiling with notoriously bad customer service.
Here are the facts: If the customer service is done correctly, it can enormously strengthen that the end result is strengthened by a company. So there can be a strong positive relationship between customer service and business success, no matter how a company "successfully defined".However, this positive correlation is not inevitable or unlimited. Some companies have poured too many resources in improving customer service - and paid too big a price.
The key is for companies to build customer service processes that succeed without expanding the budget.
Customers reward a good service
Surveys according to this question have found that building a strong customer service operations can increase sales, sales and profit.
"Seven in 10 American consumers say that they have spent more money for business with a company that delivers a large service," American Express VP Raymond Joabar said he announced the results of a survey. And the value of customer service increases, as consumers say they are ready to spend 17% more on these companies, until a few years ago of 14%, the survey found. Part of this change is driven by millennials, which are the most willing to spend more for a great concern.
A group of researchers also examined this question by digging into more than 400,000 custom tweets and followed by the buyers with the months later. The researchers announced in Harvard business reviews that "prompt and personnel customer service is the case of paying itself in fact, remember good and bad customer service experiences, and they are ready to reward companies they to treat well.".
Customers who receive answers from Airlines on Twitter were ready to pay about $ 9 more for tickets, while those who received answers from wireless businesses were ready, 8 dollars more than $ 8 dollars to pay. And when these answers came within five minutes, the figures jumped. Flyers were ready to tae $ 20 more for a ticket for a ticket to the street, and wireless customers were ready to pay a weekly $ 17 more per month. "
Effects are limited
To avoid exceeding the customer service, organizations should measure the results of their efforts.For example, a large drink distributor in the Midwest in the United States that the return of his satisfaction efforts was negative, "explained the researchers in the review of Sloan management. "Despite stronger revenues of more fulfilling customers, customer service costs rose by 10% as a result of the program, which has overwhelmed the benefits of multiple sales."
And as so many other factors affect people's purchase decisions, sometimes companies with bad customer service - like this Bloomberg once dominated as "America's Mosthy Company" - can dominate their markets.
Customer service in a budget
The good news is that excellent customer service does not have to cost much. Many of the most important steps that a company can accept are free.
Businesses should help learn their customer service representatives to use a personal note, maintain a positive sound, respond immediately to queries and respond proactively about dissolving concerns. Self-service options online that are easy to navigate and actually help customers save time and money, and removing a part of the staff.
Building online communities where users of the product offer for questions and advice can also increase the experiences for all involved.
Several surveys find that the buyers believe that customer service improves.
But you will also find that customer service becomes even more important. For example, Microsoft reported that "54% of respondents say that today they have higher expectations to customer service than they had a year ago. This number jumps to 66% for the year-old respondents."
Of course, the relationship between customer service and the business success depends on the definition of "business success".
Corporate guides - from famous and Bill Gates, Arianna Huffington and Mark Cuban to entrepreneurs and consultants - give different descriptions of their success, which means for them. More and more focus on social implications.
Some managing directors now measure customer satisfaction as a measure of business success in and by themselves. As home notes, "praise of satisfied customers provides a sense of achievement that for some entrepreneurs is so important as the financial rewards they deserve. "
This question originally appeared on quora - the place to win knowledge and share people to strengthen people to learn from others and better understand the world. You can follow Quora on Twitter, Facebook and Google+. Further questions:
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