In Numbers: The Value of Friendly Customer Service

Faith Ocampo Published on March 11, 2016 Last updated on May 30, 2024

Friendly customer service is no longer just a nicety; it has become a necessity in a highly competitive market.

Your customers are the lifeblood of your company, and their satisfaction and loyalty directly impact your bottom line and more. One key aspect of delivering outstanding support is introducing approachable and friendly customer service.

Today, we will explore the numbers and statistics that underscore the immense value of friendly customer service. More specifically, we will take a look at how it affects customer satisfaction, loyalty, retention, and ultimately, your business success.

Friendly Customer Service for Satisfaction and Loyalty

Customer satisfaction is the cornerstone of a thriving business, and achieving it requires a thoughtful approach to customer service. Friendly and empathetic service plays a pivotal role in enhancing customer satisfaction levels.

  • On Customer Satisfaction

    When customers experience friendly and empathetic service, their satisfaction levels soar. According to Zendesk, more than 70% of customers expect brands to have a friendly conversation during their interactions.

    This positive experience improves how customers see your brand, thus building trust. In addition, satisfied customers become advocates for your business, promoting your brand through positive word-of-mouth and referrals.

    Also, satisfied customers are more likely to become loyal patrons who repeatedly choose your business over competitors. In fact, around 75% of customers are more forgiving of occasional missteps and are more willing to provide valuable feedback.

  • Losing Customers Due to Poor Service

    On the other hand, customer defection due to unsatisfactory service can be expensive for your business. More specifically, replacing lost customers can cost five times more than retaining existing ones. In other words, losing customers not only impacts your revenue but also requires additional resources to attract new customers.

Friendly Customer Service for Retention and Revenue

Regardless of your industry, customer retention is critical in driving sustainable growth and profitability. As previously mentioned, retaining existing customers is more cost-effective than acquiring new ones. In addition, building a loyal customer base fuels continuous revenue growth.

  • On Customer Retention

    When customers feel valued and appreciated, they are more likely to remain loyal to your brand. According to Harvard Business Review, customers who had the best past experiences with a company spent 140% more compared to those who had poor past experiences.

  • On Revenue

    In addition to reducing customer acquisition costs, customer retention has a direct impact on revenue growth.

    According to the Pareto Principle, 80% of your future profits will come from just 20% of your existing customers. Therefore, by prioritizing friendly customer service, you are laying the foundation for sustainable revenue growth.

  • Word-of-Mouth Marketing

    Happy customers who receive friendly service are more likely to share their positive experiences with friends and family. Simply put, word-of-mouth marketing is a powerful and cost-effective way to attract new customers.

    A satisfied customer can become your brand advocate, spreading the word about your exceptional service and products. Consider this: 88% of customers trust recommendations from friends and family over any other form of advertising. In other words, personal recommendations carry significant weight and credibility.

Friendly Customer Service for Cost Savings and Efficiency

Customer retention requires a deep focus on customer service. Hence, friendly customer service plays a significant role in forging long-term relationships with your valued clients.

  • The Cost-Effectiveness of Friendly Customer Service

    Investing in friendly customer service may seem like an additional expense. But in the long run, it proves to be a cost-effective strategy. Loyal customers are more likely to spend more on each transaction and require less support. In other words, the overall cost of servicing loyal customers is lower compared to attracting new customers towards your brand.

    According to Business.com, returning customers spend 67% more than new ones. Also, attracting new buyers costs five times more than keeping loyal customers.

  • The Efficiency of Resolving Issues with Friendly Service

    Friendly service promotes open communication and empowers your team to resolve customer issues more efficiently. When customers feel comfortable and valued, they are more likely to provide clear and honest feedback in return. As a result, your team can quickly address concerns and improve service quality.

    In contrast, when customers encounter unfriendly or unresponsive service, they may feel discouraged from sharing their feedback. If they do say something, they’ll resort to more extreme measures such as negative online reviews or public complaints.

Friendly Customer Service, Employee Engagement, and Brand Reputation

The success of any customer-centric business hinges on the dedication and enthusiasm of its employees. On that note, let’s have a look at how employee engagement affects the way your brand caters to its customers:

  • On Employee Engagement

    Engaged employees are the backbone of exceptional customer service. When employees are encouraged to deliver friendly service, they feel a stronger sense of purpose and job satisfaction.

    Engaged employees are more likely to go the extra mile to provide excellent customer service. According to Gallup, they are 14% more productive and can increase a brand’s customer ratings by 10%.

  • On Brand Reputation

    A reputation for friendly customer service sets your brand apart from competitors. In particular, it attracts more customers seeking a pleasant and personalized experience. A positive brand reputation is, in other words, a powerful asset that enhances customer trust and loyalty.

    According to PwC, customers are willing to pay a price premium of up to 16% for excellent customer service. Simply put, building a strong and positive brand reputation through friendly service can significantly impact your business’ success.

Outsource Your Friendly Customer Service

Outsourcing has become a popular and effective way to deliver friendly and exceptional customer service. This approach offers several benefits:

  1. Access to Skilled and Trained Customer Service Reps

    One of the primary advantages of outsourcing is gaining access to a team of skilled customer service representatives (CSRs). Established outsourcing providers invest heavily in training their CSRs to deliver exceptional service. This training includes imparting essential soft skills such as empathy, active listening, and problem-solving.

  2. 24/7 Availability

    Customers today expect round-the-clock availability for support and assistance. Fortunately, outsourcing customer service allows your business to offer 24/7 customer support, even during holidays and weekends. Because of this, customers can get assistance whenever they need it, enhancing their satisfaction and confidence in your brand.

  3. Multichannel Customer Support

    Outsourcing providers are well-equipped to handle customer interactions across multiple channels, including phone, email, live chat, and social media. Through diverse communication channels, you can cater to your customers’ preferences and provide a seamless and convenient support experience.

  4. Scalability and Flexibility

    Your business will experience fluctuations in customer support demands based on various factors, such as seasonal peaks or product launches. But outsourcing customer service gives you the flexibility to scale the support team up or down based on demand. As a result, you now have the necessary resources to handle customer inquiries efficiently.

  5. Advanced Technology

    Outsourcing providers use advanced customer service technologies to optimize interactions and improve the overall customer experience. From efficient ticketing systems to AI-powered chatbots, these tools streamline customer interactions and enable quick issue resolution. Plus, these technologies allow CSRs to focus on delivering friendly and personalized interactions.

  6. Language Support

    If you have a diverse customer base, language support is essential to deliver friendly customer service. To that end, outsourcing providers can offer multilingual support, allowing your business to cater to customers from different language backgrounds.

  7. Focus on Core Business Activities

    If you outsource, you can concentrate on your business’ core competencies and key initiatives. For instance, you can have your internal teams focus on product development, marketing, or other critical aspects of your business.

  8. Continuous Monitoring and Quality Assurance

    Outsourcing providers prioritize quality assurance. As such, they continuously monitor customer interactions to ensure service excellence. Through regular feedback and performance evaluations, these providers maintain the highest standards of friendly customer service.

Final Thoughts

The numbers and statistics don’t lieโ€”friendly customer service is an invaluable asset to your business. In prioritizing customer satisfaction, loyalty, and retention, you drive revenue growth and reduce costs. Simultaneously, focusing on employee engagement will contribute to a positive brand reputation.

Investing in friendly customer service is not just a business strategy; it is an investment in building strong and enduring relationships with your customers. With friendly customer service in your business philosophy, you create a customer-centric organization that stands out from the rest.

Reach out to our Open Access BPO team today to turn these insights into progressive strategies. Our tried-and-true onboarding, uptraining, and upskilling modules produce experienced agents who can drive up your revenues through customer retention. Flexible, cost-effective solutions await your brand.

If you want more revenues, you should start treating your customers in a friendlier manner. These numbers say so.

Call centers often use techniques that save money and increase their efficiency in terms of the number of customers they accommodate. Yet in the mission to cut costs, many of them unconsciously impede potential sales even before they happen.

smiling young woman working in a call center

As agents try to accept huge volumes of calls, they tend to pay less and less attention to customers. They may favor scripted opening lines instead of lively, personalized ones. And, they also often end up redirecting callers to another channel instead of entertaining them right away.

You may not think these little things matter at first, but in reality, they dictate the quality of a brand s relationship with customers. A recent study from Marchex shows that sophisticated technology isn t the only thing that improves the customer experience. According to their study, which pooled business insights from various industries, friendly call center approaches can drive up to $100 million through phone sales.

Here are the main insights from the study. They seem like common knowledge, but surprisingly, many customer service providers fail to do them.

1. About 50% of callers hang up within three minutes of hold time.

landline phone hanging by cord

How does that impact a company’s revenues? According to Marchex, abandoned calls cost brands approximately $15 million. That s more than enough reason to streamline your customer service and speed it up. Failure to accept a lot of calls due to long hold times means less chance of making sales and, worse, customer churn. Your customers may already be on the search for an alternative brand with a more efficient, faster lineup of services.

 

2. Warm greetings equate to $20 million added revenues.

warm smiles from a customer support agent in a call center

It’s not that we blame agents for using the same line which commonly goes “Hello, this is Agent X from Brand Y. How may I help you?” But isn t it much better to start conversations with a more upbeat and warm “Hi! How are you today?” If you can think of a more creative line, then all the better. The opening greeting sets the tone of the entire call and ascribes a human voice and a captivating personality to a brand.

It turns out that warm greetings are worth millions of dollars in terms of sales. To be exact, they can drive an extra $20 million in yearly revenues. This is primarily because customers trust brands that show that they want a personal relationship with them.

 

3. Open-ended questions drive 30% higher conversions.

customer support agent talking to customer on phone

By now, you’re probably skeptic of these figures. How is it that open-ended questions can improve conversion?

Asking the right questions allows call center agents to identify the root causes of a problem. From there, they ll know what issues must be targeted to retain a customer or encourage them to purchase another product. Mastering this technique alone can mean $30 million more revenues.

Therefore, agents have to assume the role of a listener, one who’s attentive to the needs of a customer and then recommends sound advice to them. This way, they aren’t just addressing customers’ problems but they re also building a good relationship with them.

 

4. Highlighting attractive benefits improves conversions by 20%.

diverse multilingual call center team

When agents try to upsell or cross-sell, customers are thinking of one thing: What s in it for me? So agents must always answer this unspoken question to give customers a good reason to accept their offer. Doing this can drive up to $20 million in annual revenues.

Being more warm and friendly can indeed have positive results! Hopefully, these insights will serve as reminders for both managers and agents to treat customers as friends they want to keep.

Reach out to our Open Access BPO team today to turn these insights into progressive strategies. Our tried-and-true onboarding, uptraining, and upskilling modules produce experienced agents who can drive up your revenues through customer trust and retention. Flexible, cost-effective solutions await your brand.

Faith is a digital media enthusiast aiming to become an active part of the tech world by sharing her insights. She likes to blog about everything digimarketing, technology, and social media.
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