Since I’ve been beating the customer service drum lately I should point you to a useful post about how good service is tied to healthy profits.
The post is from a blog called: “Word of Mouth vs. Advertising”. It talks about how public companies that have earned high marks for their customer service have also returned a better price on the shares of their stock.
In other words, there is a correlation between good service and a valuable business.
I know this sounds likes a “duh” conclusion and I wish it were. But, so many companies do such a lousy job with service that I have to wonder if people really believe this correlation exists.
Of course, this post refers to large, publicly-owned companies. But is there a difference for smaller, locally-focused businesses? I don’t think so. People are people whether they buy from a large company or a small one.
Any business can increase profits by improving their service. When you improve service, your customer retention goes up and your new customer acquisition costs go down. Plus, you probably get a more stable and happy staff. As this post points out, companies that treat their customers well usually treat their employees well too.
The bottom line: Revenue goes up and costs go down. That makes for a more valuable business.
In the coming months, we’ll talk more about this because it’s critical if you want to grow your business. Specifically, we’ll look at two things as they relate to service:
1. How to get more customers to come back and do more business with you.
2. How to get more customers to tell others good things about you.
(One way to do this is to give them more than they expect.)
So, how does your business give your customers or clients more than they expect?