You don’t need an MBA to understand that keeping existing clients is less expensive than attracting new ones. While the Harvard Business Review tells us it’s five to 25 times more expensive to acquire a new customer than to keep a current one, there’s something logically intuitive that tells us that customer loyalty just makes sound business sense. And yet, so many companies today are not living up to their lip service when it comes to customer service. After all, customer service isn’t just the agent on the other end of a phone call or a chatbot. True customer service is much broader, encompassing an organization’s process, philosophy, structure and execution.
One trillion dollars. Well, $1.6 trillion to be exact. That’s the estimated loss from customers switching to another company due to poor service, according to research from Accenture. Keeping customers happy -- and loyal! – isn’t just the right thing to do, it’s essential in protecting your bottom line.
Customer service agents – from operations managers to call center supervisors – all want to provide efficient, quick mitigation after a poor experience. Cross-departmental teams seek to hit service metrics around customer complaints and achieve industry service rankings in hopes of retaining their most loyal customers. But what if your organization’s mitigation efforts aren’t actually working to achieve those scores or retain loyal customers? Despite the fact that your efforts are standard practice in your business or industry, it’s possible that your customers may not agree that you are, in fact, effectively mitigating their problems.