For businesses, customer retention should be a no-brainer. Existing customers are your target market in the real world; they’re proven to be interested in your company and what you do. And when more than 70% of customers have ended their relationship with a company due to poor customer service, the importance of customer service cannot be overstated. First stop on the road to improvement: your phone system.
Attracting and acquiring new customers is hard. From the time and money invested in marketing and pursuing leads to the letdown when your efforts don’t pay off, bringing in new clients is hard for almost every business. In comparison, customer retention is a much better return on investment. According to the Pareto principle, about 80% of a company’s revenue is generated by only 20% of its total customers, so keeping your current customer base happy is critical. Yet many businesses feel that the acquisition of new customers is one of their most important goals. What about customer service?
Customer Service and Retention: The Numbers
In an infographic compiled for GetSatisfaction.com, their bloggers lay out the numbers about the relationship between customer retention and customer service.
- 71% of consumers surveyed reported that they have stopped doing business with a company due to poor customer service
- 61% take their business to a competitor when ending a business relationship.
- 63% of marketers believe that new customer acquisition is their most important goal
- New customer acquisition can be up to 7 times more expensive than customer retention
- Customers spend an average of 9.5 minutes trying to reach a customer service representative on the phone
These numbers show the correlation between customer service and a business’s bottom line, and how truly damaging a lack of attention to customer retention can be.
How Your Phone System Can Help
The good news is that it is no business’s goal to provide poor customer service. Every company wants to give their customers the care and attention that they need. While it may not seem all that important, a good phone system can go a long way in creating a great customer service experience. Traditional phone systems, or landlines, can cause a lot of problems in your service. There are many points at which a landline phone service can fail: on-site at your business, at any point along the underground wires that are required, at your service provider, et cetera. Bad weather can mean poor call quality, and telephone system maintenance times mean gaps in customer service availability, frustrating and driving away customers.
Upgrading to a VoIP, or Voice over Internet Protocol, system can provide your business with features to make your service shine. VoIP systems provide real-time data on customer service calls that can help representatives resolve issues more quickly and effectively, as well as creating a wealth of information that can be analyzed to improve customer experience throughout the company. VoIP can also help your business make a great professional impression with customizable auto-attendants, hold music, and routing that enables calls to be transferred between representatives, departments, and even locations without inconveniencing the customer.
How you interact with a customer can make or break their experience, and customer service over the phone is a huge part of that experience. Making sure that your phone system is working for you is an easy way to improve your customer service - and your bottom line.