Effective customer service is key to the success of your business. With today’s breed of customers, customer service has become a key differentiator. When done right, it can have a huge impact on your return on investment. According to Hubspot, 68% of customers say they are willing to pay more for products or services in exchange for good customer service. Hubspot Research meanwhile reveals that 93% of customers are likely to make repeat purchases with companies offering excellent customer service.
Unfortunately, many companies fail in this aspect leading to customers leaving and taking their business elsewhere. There are many companies that do business while adopting some misconceptions that keep them from delivering on their promise. Here we look at some myths about customer service.
Common Myths About Customer Service
- The Fewer The Complaints, The Better
- Satisfied Customer Means Loyal Customers
- AI Will Replace Humans In Support
- Customers Care More About Price Than Service
- Invest More In Marketing Than In Customer Service
- One Good or Bad Experience Does not Define The Business
- If You Meet Customer’s Needs, Your Job Is Done
- Make The Service Fast and Speedy
- Customer Complaints Are Good For Business
- Customers All Want The Same Thing
10 Common Myths About Customer Service
Every business aims to offer top-notch customer service. In today’s competitive market, customers now prefer businesses that provide better customer service. Like most businesses, the customer service sector can be impacted by misconceptions which can change the way they deliver customer service to their patrons. Let us take a look at the most common customer service myths.
1. The Fewer The Complaints, The Better
This is one of the most common myths prevailing in the industry. Just because your customer is not complaining does not mean they are satisfied with your service. The fact of the matter is that only 4% of dissatisfied customers will share their complaints with a business. It is also worth noting that 13% of dissatisfied customers will share their negative experiences with 15 or more people. This could have a ripple effect on your brand reputation.
Fewer customer complaints is not always better but could also be a red flag. You should always make sure that the customer is really satisfied with your service. If they have any complaints, you should address them right away. Complaints indicate that there is a problem with your customer service. You should treat complaints as an opportunity for improvement. By listening to customer complaints, you can make the proper adjustments to prevent future complaints.
Encourage your customers to give their feedback. Ensure a fast & effective complaint resolution. Fewer calls mean lower revenues for your business. Customer complaints are an indicator that your users are actually using your product. If no one is complaining, it could mean that they are planning to jump to your competitor so resolve customer complaints as soon as possible.
2. Satisfied Customer Means Loyal Customers
Customer satisfaction does not always translate to brand loyalty. Once again, it will all boil down to the quality of customer service they will receive. They will stay loyal to your brand if you always deliver better customer service. If you don’t, chances are they will look for that experience somewhere else. If you want loyal customers, don’t be satisfied with just meeting the needs of your customers. As much as possible, try to exceed their expectations.
Customer satisfaction is not always synonymous with customer loyalty. A study by Bain and Company revealed that between 65% and 85% of customers who switched brands reported that they were “satisfied” or “very satisfied” but still left their original brand. Satisfaction and loyalty do not mean the same thing.
But then it does not mean that you should stop delighting customers. Your goal should always be to encourage repeat purchases. Go beyond just meeting expectations and look for what really motivates people to stay. Take your customer experience to the next level and brand loyalty will follow.
3. AI Will Replace Humans In Support
Artificial intelligence has allowed businesses to automate customer support and allow agents to focus on their core tasks. This paved the way for the myth that AI will soon replace humans in customer support. With the technology, customers are now able to do self-service and solve their concerns on their own. Even with this functionality, customer service will still require the support of live agents.
Customer support agents need not worry about being replaced by AI. Why? Customers still want to interact with someone they can relate to and understand them. A 2017 study by Gartner revealed that one-third of customer service interactions will still require human support. Humans are still needed to ensure effective implementation. Work will be more efficient when humans and AI will work together. Humans design the experience while AI implements it.
Although Goldman and Sachs admitted that artificial intelligence could replace the equivalent of 300 million full-time jobs, human support will not be replaced. It can augment and automate mundane tasks but for complex tasks, it will still need a human touch. Aside from that, artificial intelligence is expensive and some businesses are still not able to afford the technology. Effective customer experience will need both humans and machines.
4. Customers Care More About Price Than Service
Gone are the days when pricing figured prominently in purchase decisions. Nowadays, customers base their purchase decisions on the experience they get from a business. So instead of focusing on pricing, make customer experience your top priority. 96% of customers feel that customer service is crucial for brand loyalty. In addition, 89% of customers said that they would switch brands after an unpleasant experience while 77% who experienced a positive service are likely to recommend a brand.
Putting a premium on customer experience can have a huge impact on your revenue. Data from Superoffice reveals that companies with a focus on customer experience are 60% more profitable than those that are not customer-centric. Customers are willing to pay more if they feel valued and witness an exceptional customer experience. Moreover, Bain & Company revealed that companies with superior customer experience grow revenues between 4 to 8 percent. Setting a budget for improving your customer experience can result in a huge return on investment.
It is good to offer low prices but you need to prioritize quality customer service. If given a choice, most customers would choose the latter. They want a service that would meet all of their needs even if it means paying more to get it. Customers value good service more than low prices. Also, it is worth remembering that acquiring new ones is more costly than retaining them.
5. Invest More In Marketing Than In Customer Service
Of course, you need to market your business in order to bring in customers. You can spend money on customer acquisition but there is no assurance that they will stay if you don’t deliver good customer service. In today’s competitive market, customer service is the new marketing. If you provide good customer service, the customers will follow.
Marketing is indeed an important business activity but everything boils down to your customer service. It is your customer service team that is at the forefront of your business. If your customer is satisfied with your service, they will not hesitate to recommend your business to their friends. Good customer service is a cheaper form of marketing. The quality of service you offer your customers will spread like wildfire to potential buyers.
Investing money in customer service is just as important as investing in marketing. Invest your money in technology and training for your customer service team. You have a marketing budget so why not spend for customer service as well? Investing in customer service will offer long-term benefits for your business. You need to make sure that your customer service team is well-equipped with the tools and resources to be effective in their job performance.
6. One Good or Bad Experience Does not Define The Business
Fromt the get go, you want to create a lasting impression with your customers and you can start by providing good customer experience at the first point of contact. Consumers demand more from businesses as it is one of the factors they will look at when making a purchase decision. Knowing the importance of good customer service is one thing but understanding its impact on your business is another.
If you think that one positive or negative interaction cannot impact your business, think again. According to Zendesk, around 80% of customers say they would rather do business with a competitor after just one bad experience. Moreover, 78% of customers have backed out of a purchase due to a poor customer experience. The sad news is that any product defect or poor experience with your business can easily turn off customers and switch brands instantly.
Ensure that your business implements sustainable customer service protocols and solutions focused on creating a well-rounded and positive overall customer experience rather than on short-lived satisfaction. When you ensure a positive customer experience, you also ensure that your customers will stay on for life. Keep in mind that less than 25% of customers complain when they have an issue and 70 – 90% don’t bother.
7. If You Meet Customer’s Needs, Your Job Is Done
Customer service does not end when a buyer has made a purchase. It is not enough that you meet their needs, you have to exceed their expectations. Meeting their needs is only half of customer service. Effective experience is all about how customers feel from the moment they become acquainted with your company to the last interaction you had with them.
Meeting your customer’s needs can help drive business. It shows customers that you care for them and value their input. Exceeding their expectations can strengthen trust and loyalty with your brand. Customer experience involves several micro-interactions that can all impact how people will see your brand.
Start with getting to know your customer’s needs and wants. By doing so, you will know exactly what to give them and ensure a positive purchase experience. In addition, it can help you weed out any unrealistic expectations the customer may be having. It will help you come up with the best solution to address the identified customer need.
8. Make The Service Fast and Speedy
Customers want their issues to be resolved as quickly as possible. While this is one of the ultimate goals of customer service, you also want to make sure that the problem is resolved properly at the shortest time possible. You cannot rush the customer during the call because you want to get over with them as soon as possible. Again, your brand reputation will suffer if you do not deliver quality customer service.
When it comes to customer service, you only have a small window for delivering a quality reply. Typically, you only have a 2-5 minute window to respond so don’t miss out on the opportunity. Every minute of silence can make a huge difference especially if you are dealing with an angry customer.
Fortunately, there are a lot of techniques that you can employ to ensure a quick but efficient problem resolution for your customers. For instance, you can add live chat to your website. Around 73% of customers say that live chat is the most satisfactory means of communication within a company. Another technique is to leverage AI technology in your business.
9. Customer Complaints Are Good For Business
Businesses have the notion that when people are not complaining about your product, it means that they are satisfied and using it. This is not the case all the time because if there are no complaints, it is likely that they are silent and dissatisfied and could switch to your competitor. Similarly, when customers stop calling, revenues start decreasing. However, if the phone is always ringing and email inboxes are full, it translates to more customers and more revenues.
Treat customer complaints as an opportunity and not a problem. Sometimes product glitches and defects arise once the customer starts using it. Use complaints as an opportunity to really test your product and identify which is working and which is not. Don’t just dismiss complaints after attending to them. Process them and look for ways to improve your product, services, or the way you do business.
Also, encourage customers to give feedback. If you want to keep customers loyal to your business, you need to give importance to what they are saying. Only 1 in 26 customers will tell a business about their negative experience and the other 25 will just leave without explaining or saying their complaint. Be open to any type of feedback and address it as promptly as possible,
10. Customers All Want The Same Thing
This is false. Every customer is unique and will have different needs. There is no such thing as “one size fits all” when it comes to customer service. Don’t treat a young customer the same way you will an older one. Don’t think that they want the same thing from you. There is no template to follow as it will depend on the needs of the customer. While they can serve as a guide to new team members, you need to be flexible with the way you handle different customers.
Different demographics have different needs so you need to tailor the solutions to those needs. With customers more demanding than ever, one or two ways to solve their problems won’t just cut it. Thus, it is important to consider their needs to ensure that they won’t churn and take their business elsewhere. You need to be proactive instead of reactive in dealing with customer issues.
Companies that don’t respond to customer needs are at risk of losing their loyalty. Consider the different needs of customers and adjust your resolution accordingly. Offering them solutions designed to address their specific needs is a great way to build trust. Using a one-size-fits-all all approach is no longer applicable to today’s new breed of customers.
Debunking these common myths in customer service is important in order to deliver effective customer service. Ensuring that customers stay happy can make a difference in boosting customer loyalty and increasing your revenue.
Optimized Customer Service Solutions with airisX
Companies come to us to optimize existing customer support channels and/or to leverage new ones. We focus on incorporating existing processes into your desired channels and help you scale to other ones as your requirements grow. Get in touch with us at contact@airisX.com and get a customized solution tailored to your needs.