The main objective of a company is to maximize profits from its operations. Profit motive is what encourages a firm to undertake different marketing and management strategies which will lead to revenue maximization in both the long run and the short run. As a company prospers, sales increase and this leads to revenue maximization. A firm strives in the market to cultivate sales and capture a large market share which will increase shareholder wealth by increasing value per share of stock. Therefore, the prime objective of a typical company is to generate the highest possible turnover.
How to Achieve This Goal
In order to achieve the main goal of revenue maximization, a firm employs various strategies which primarily include market research, advertising, cost saving, quality improvement etc. Economies of scale can be achieved by a company as it increases its production and these economies of scale can eventually be passed on to consumers in the form of lower costs. All these techniques are quite effective and lead to an increase in sales but if a firm wants to generate a high turnover in the long run, it must work towards attracting customers and retaining them.
This can mainly be done by building up a good repute. The most important thing that can affect a company’s reputation is the way it presents itself to the general public. A successful company is one that knows how to set its priorities right and customer satisfaction should always be the first priority if the main aim is retention of customers. Peter Drucker once said: “Quality in a service or product is not what you put into it. It is what the client or customer gets out of it.” Hence, customer satisfaction should be the ultimate goal if sales are to be increased. Good customer service is directly proportional to the number of clients and that eventually contributes to higher sales. If a company is able to achieve customer service excellence, it will be able to create brand loyalty and thus increase sales.
What is Good Customer Service?
Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation. Good customer service is the most vital aspect of a company’s success and all large organizations have had their prime focus on the achievement of customer service excellence. Customer care is like value addition to the existing product or service being offered. Customers show a willingness to pay for certain goods and services and in return they demand to receive good customer care.
Customer care representatives should be qualified and trained enough to please the consumer. An impressive customer care service consists of representatives that have excellent writing and communication skills, which include talking on the phone, face to face or via email effectively. It is important to note that putting customers first and treating them right can work wonders for your company. A polite and courteous representative will always draw the client’s attention and will encourage them to come back to the same company for future services.
Why is Customer Relationship Management Important?
Customer Relationship Management (CRM) is a widely-implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize and automate sales activities and other business processes like customer service and technical support. An effective customer service will always attract the customer for a second visit and the company will be able to gain new customers and retain the older ones. This retention of customers creates brand loyalty.
Customers want to be treated with respect. For instance, if a customer calls a customer service centre and he/she has to wait for an hour because the operator is busy and during this time their call gets disconnected, directed, re-directed and transferred over and over again, the customer is not likely to pay the firm a second visit. However, if customers are dealt with pleasingly, the likelihood of repeating customers increases.
Moreover, if customers have invested time in acquiring information about a firm from the market, then they deserve the right to a welcoming response or they will be discouraged to opt for a product or service from the same firm again. To make matters even worse, this will spoil the reputation of the company and will have adverse effects on the clientele. Thus, an efficient customer relationship management system is necessary to get the desired results as said by Arthur F. Sheldon: “He profits most who serves best.”
Misconceptions about Customer Services
Most businesses are reluctant to invest in the customer care department and view it merely as a cost center. The training of customer care representatives is not taken as seriously as it should be because the firms are unwilling to invest in training and development of the representatives. They see customer service as an additional cost which they eventually want to outsource or, if possible, completely eradicate.
This laid back attitude towards the customer service department inculcates a similar behavior pattern in employees. Most workers believe that customer care is not an admirable field to pursue a career in and they only see this as a stepping stone. They only prefer customer care jobs at entry-level positions.
In reality, customer care service adds value to the firm’s product and helps it build a reputation in the industry thus increasing turn over. If management realizes this fact, customer care can be easily turned from a cost center into a profit center, the benefits of which can be easily passed on to the employees.
Consequences of Bad Customer Care
Bad customer service can have disastrous effects on a business. If customer service is not satisfactory, a firm will almost never have a repeat customer and this will make the firm lose its existing customers. Albeit this can be pretty distressing for a firm to lose its old customers, it can have worse effects than that if the disappointed customers go on telling their friends and family about the quality of customer service they received or post a feedback about the firm on a public forum. This will most definitely put the company’s reputation at stake. If not handled carefully, it can lead to frightful results. It might spoil the company’s reputation so much that it might actually be driven out of business.
How Customer Care Benefits Sales
Satisfaction of the customer brings numerous benefits to the company in terms of brand loyalty, word-of-mouth advertising, reduced complaints etc. Also, in today’s world, there is perfect information about the market. The internet has turned the world into a global village and buyers and sellers have access to data all over the world. There is no lack of information and hence, all firms can lower their costs and all customers can find attractive deals. In this scenario, what differentiates a company from others and gives it a competitive advantage over other firms in the industry is how they present their product. Good quality products become even better quality if the company values its customers. Therefore, a remarkable customer care service can give the firm a competitive advantage and can have the benefits of improving the overall status of the firm and enhancing its image in the market.
A firm should invest in the customer care department as a profit motive because good customer care helps generate revenue by increasing sales. Special attention should be paid to the training of customer care representatives and the main objective should be good treatment and high level of satisfaction of the consumer. Customer care representatives should be well trained and must have outstanding communication skills which will in turn help a company increase its sales.
To ensure that you don’t miss out on any blog post or updates, please subscribe to our newsletter by entering your email on the right side module or follow us on Facebook, Twitter and LinkedIn. You can also subscribe to the RSS Feed.
WebGreeter offers optimum live chat services for websites to provide live chat support services to their customers. Our live chat operators are well trained before they interact with your website visitors to ensure they help them buy your products or services before leaving.
No related posts.