You might have the best product or the best ideas but with poor customer service, you might as well say goodbye to your business. Customer service is one of the things that can make or break your business. Happy customers are likely to recommend your company or product to friends while unsatisfied ones can easily wreck your business. Below are some reasons why customer service is very important.

#1. Reputation

Customer service gives an overall impression of your business. People will always remember if your customer service was good or bad and if they remember the latter, then your business is at risk. The same way customers can advertise your company is the same way low customer satisfaction can negatively impact your business. It’s one thing to lose a customer because they were unsatisfied/unhappy. It’s another thing completely to lose more customers because of some bad word of mouth. To prevent this, ensure that there is continuous customer satisfaction.

#2. Increase or decrease repurchase

Customer satisfaction is the best indicator of how likely a customer will make a purchase in the future. To make this more practical, ask customers to rate their satisfaction with your business. Any customer that gives you a high rating can be considered satisfied, and you can safely expect them to come back and make repeat purchases and even advertise your products or services. On the other hand, customers that give you a low grade are warning signs that a customer is unhappy and at risk of leaving. These customers need to be put on a customer watch list and followed up so you can determine why their satisfaction is low.

#3. Customer retention

Effective customer service has a way of building relationships with customers and once that is established, be sure that those customers will be loyal to you. Loyalty is key because even when things go bad, those customers will stick around. It takes more to acquire a new customer as it does to keep an existing one. “Happy customer” means customer growth through referrals.

In cases where your products or services are expensive, good customer service can waive that off. Even in cases where your competitors offer lower prices with poor customer service, customers will pick your business over others.

Poor customer care puts your business reputation in jeopardy. If your company is represented in a good way, your customers will remember your company fondly otherwise your company in a negative way, you’ll probably lose a customer and get some bad reputation.