Importance of Customer Service Management
Customer experience or how a customer feels about a company over time – is driving new approaches to customer service and the realisation that customer service management (CSM) needs to be more than CRM.
Customers want to feel valued, with 76 percent of consumers viewing customer service as a test of their value to a company, so customer service matters. And not just to the customer side of the customer service equation – it’s important to companies too:
- Happier customers increase revenue and profit – American Express research shows that two-thirds of consumers will spend more with companies that provide excellent customer service.
- Increased customer retention drives increased profitability – historical Bain and Co. research identified that a 5 percent increase in customer retention can increase a company’s profitability by 25 to 95 percent, because returning customers tend to buy more from a company over time.
- Customer churn increases sales and marketing costs – with it 6-7 times more expensive for companies to attract new customers than for them to keep hold of existing ones.
Customer service definitely matters and, for companies that want to get or stay ahead of their competition, it’s time for another customer service management revolution. One that focuses on all three elements of CSM – the customer, service, and management.