Adding value to another person’s life, through exceptional customer service, improves the self-image of the team member providing the exceptional customer service. Great customer service creates a special corporate culture and the highest levels of job satisfaction. It becomes a circular dynamic. Happy team members then make happy customers. Visit any organization known for great customer service (Ritz Carlton, Chick-fil-A, Trader Joe’s, etc.) and you will enjoy this wonderful dynamic.
When an organization truly differentiates itself in the area of customer service, it enables the company to rise above the blood in the water created by price competition in an increasingly commoditized industry. With exceptional customer service we earn the right to fair and even exceptional pricing.
In a digital economy, word travels fast. Twenty years ago, an organizations poor or good customer service experience might be shared with five or six contacts, over time. Today, that same experience may travel to five or six thousand contacts, in one day. Google and Yelp ratings matter. The vast majority of consumers – both Business to Consumer and Business to Business – incorporate these ratings services into their purchase decisions. Other social mediums like Facebook and Twitter can be equally valuable or equally damning.
Finally, every CEO must consider the cost of replacing a customer. Statistics vary by industry. On average, the cost of replacing a customer is 8x the cost of retaining a customer. Furthermore, the cost of obtaining a customer via a warm referral from a “Wowed” customer is a fraction of the cost associated with any traditional business development process.