How to unlock revenue with good customer service | Return on Investment

Many retailers believe customer service to be an overhead of doing business, but if this were the case then cost reduction would be the best approach to improving your ROI (return on investment). Thankfully, this is not the case.

Customer service comes with value-added activities that help businesses retain more customers. If used strategically, customer service evolves into a competitive differentiator for organizations and allows them to stand far above the competition. Having a loyal customer base allows businesses to improve financial performance and gain approval from shareholders.

If one were to investigate the true value of customer service, one would have to start from the relationship businesses develop and nurture with their customers. The story includes initial marketing endeavors, sales journeys, and post-sales support. These engagements allow businesses to build a good rapport with customers. Consequently, when customers realize that a business is intent upon understanding their needs and concerns and is always working on ways to address them, they will trust that company more, and apart from conducting repeat business, they will further evolve into brand ambassadors for that organization.  

If all the above sounded good, then here are things you can do to increase revenue just by providing good customer service.  

Work on customer loyalty

Customer loyalty is a concept many businesses tend to get confused about. After all, there is only a fine line separating a satisfied customer from a loyal one. To put it simply, a satisfied customer will consider engaging in repeat business with a business, but a loyal customer will come directly to a business without even considering its competitors. A loyal customer is also likely to refer their friends and family to the business.  

It is a fact that having a loyal customer base better than having great products. It does not mean that businesses should consider lowering the quality of their products. A loyal customer base is developed when a company shows customers that it respects them, cares for them, is mindful about their time, and understands their needs.  

Businesses need to seriously focus on their customer service staff as they provide the essential individualized touch needed to forge loyalty-inducing connections with customers. They are also the last people with whom your customers will interact if you have physical stores then the experience your customers will get from the retail staff will be something they will always relate with the business. It is best you ensure that you end your business transactions on positive notes.

Always upsell/cross-sell

One of the best ways to increase revenues is to upsell or cross-sell. Most businesses tend to concentrate on the word “sell” when they should be working on upselling and cross-selling. These two terms are focused on understanding customer needs and finding ways on helping the customers through additional products.  

It is always a pleasant surprise when a customer discovers that a company has more to offer them. If the customer service staff is knowledgeable about products and services that solve customer concerns and make their life easy, then they will not only make satisfied customers they will also bring their company more revenue.  

Empower your teams with sales insights

Data is key to making more sales and increasing revenues. If the customer service team is empowered by sales insights based on customer buying behavior, they will know precisely what appeals to distinct customers. This will allow them to provide better service and save the precious time of their customers. Closing sales quickly also translates into having extra time to handle more clients which translates into increased productivity and also revenue.  

Businesses should ensure their retail store staff knows why the customers are buying certain products, what needs are the products fulfilling, and which product features appeal the most to the buyers. Armed with this information, they will be able to identify similar need patterns with other customers and increase sales beyond benchmarks.  

Never forget competitive insights

It is important for businesses to have a close eye on their competition and know how they are performing. Companies should be able to compare their products and services with their competition to understand where are lacking. Successful businesses are always working hard to gather information on why their customers are choosing them over the competition as this tells them that they are working in the right direction. All this information can be obtained from competitive insights which are vital for any business working in a competitive industry.  

Here again, customer service is the key as they are in direct interaction with the customers. These teams can ask questions and learn why the customers are buying from their store and what experiences they have had elsewhere. It is always important to have a friendly and empathic retail staff because even the customers who are wary of sharing information before buying, open amicably after the sale is made. Here your retail staff can gather valuable data that can be used to generate competitive insights.

Look for product/service improvement opportunities

Many businesses believe that their products are of the best quality in the market, but studies say no customer perceives any product or service as perfect unless convinced otherwise. What is the convincing factor here? It is the customer service team that secures the frontline and answers customer questions, receives feedback about your products, and maintains good customer experiences.  

While these people interact directly with customers, they know precisely what appeals to the target market and what improvements are needed in certain products and services. If communicated properly, the customer service team of any business can play an instrumental part in improving the products and services.  

All businesses need to do is to develop a process where customer service staff can share insights they learn from your customers with the research and development, project management, and delivery teams. This information can be used to create better products and meet customer expectations efficiently. The more satisfied customers a business has, the more sales it will make and everyone knows that good sales mean good revenue.

Ending Words

Providing great customer support to customers is of utmost importance to all businesses today. While building great relationships with customers is necessary, it does not mean that a business should forget its interests. When a company helps its customer in getting the most out of its products and services by offering them great customer support. That company is creating experiences that its customers will be more than willing to pay for.  

In a nutshell, good customer service is important for all businesses looking to increase revenues. AI-driven traffic predictions and product recommendations can help a lot in boosting store productivity. Businesses need to use data insights to optimize staff schedules as it will assist in reducing labor costs and maximize conversions. They can also use AI to predict downtimes and act proactively.  Empowering your staff with real-time in-store analytics will not only ensure an optimal shopper experience but will also holistically enhance your business processes.