As somebody who offers customer service/experience seminars, it always puzzles me why companies and people spend gobs of money on sales training but not on training the people who take care of the customers after the sale. The companies always consider the “customer service” department as a non-revenue generating necessity.
It’s not. Actually, it may be more important to the bottom line than sales.
Think of it this way: Sales and marketing help customers make the decision to buy in the first place. Customer service and all of those who serve your customers help customers make the decision to buy more. While it can be difficult to convince somebody to try your product or store, what’s even more difficult is getting them to buy again and again. And if they keep buying again and again, those customers are much more valuable to your business than those who buy only once. It’s not rocket service to know that you want more of those customers.
Have you ever seen what happens when a salesperson nabs a huge account? What a celebration! Juan (or Juanita) gets slaps on the back, congratulations from the boss, maybe even a little bonus gift for his efforts. His name goes up on the sales chart and everybody knows he’s DA MAN!
During the next year or two, the client contacts the company several times for situations big and small and receives remarkable service from Ingrid, David, Ariel, Hannah and the rest of the underpaid but conscientious customer care or help desk people. The client is very happy. At the end of his two-year commitment, he calls to renew the contract.
Odds are there is no celebration in the help desk area. Tracy, the customer service manager doesn’t get slapped on the back, congratulated by the boss, nor does she receive a little bonus. If Tracy doesn’t get these things, what do you think Ingrid, David, Ariel and Hannah get? Nobody in customer service gets the credit and what’s worse, the salesperson gets the huge commission on the renewal and the additional agreements the client signs because he’s so happy.
Do these customer care people deserve to get more? Yes, because in the long run, they can affect the bottom line more than sales can. In its 2009 Customer Experience Consumer Study, Strativity Group shows that “loyal customers who enjoyed exceptional customer experience are almost three times as likely to continue doing business with companies for another ten (!) years or more than dissatisfied customers.”
Which is more profitable, the initial sale or the ongoing business based on customer experience?
If that number doesn’t cause you to answer the latter, try these, also from the Strativity study.
- 40% of loyal customers say they are willing to pay 10% or more to continue purchasing from companies delivering great experiences
- More than half of dissatisfied customers say that in return for continuing to do business with companies that deliver inferior customer experiences, they expect at least a 5% discount.
- Satisfied customers demand no such discount.
- Customers who received an inferior customer experience are 10 times more likely to cease doing business with companies within the next 12 months than loyal customers.
There is no doubt that sales is the main driver of company revenue – if a customer doesn’t buy your product the first time, they can’t experience your company’s service. But that sale only gets them in the door. It is the service area that takes care of the customer after the sale that causes the money to keep rolling in.
The next time one of your customers renews an agreement, makes a repeat purchase, or buys additional products and services, I expect a celebration. I’ll bring the cake.