How You can grow your business in 2024.
Effective customer service is the cornerstone of any successful business, but the traditional approach of “delighting” customers is no longer enough to build loyalty. Research has shown that customer loyalty is primarily built by reducing the effort required to solve their problems, not by providing an exceptional service experience.
In fact, customers are more likely to sever ties with companies that provide poor service than they are to continue doing business with companies with exceptional service. This is especially evident in interactions through phone and self-service channels, which are typically the largest customer service channels for most companies. Loyalty is determined more by how well companies deliver on their basic promises than by providing an exceptional service experience.
Furthermore, research has shown that customers aren’t necessarily more loyal to companies that go above and beyond. Companies that act on the insight that reducing customer effort builds loyalty can improve customer service, reduce customer churn, and lower customer service costs.
Customers buy from companies that deliver quality products, great value, or a compelling brand, but they leave companies because of poor customer service. To mitigate disloyalty, corporate leaders must instruct their service organizations to focus on reducing customer effort. Companies must adapt their approach by building their organizations around self-service while reducing customer effort at the core.
In conclusion, companies that fail to realize the importance of reducing customer effort will pay dearly in terms of wasted investments and lost customers. Effective customer service is about making it easy for customers to solve their problems, not about delighting them with exceptional service experiences.
