8 Reasons Why Customer Service is Important for Ecommerce Businesses
Updated: May 27
When building an ecommerce business, everything matters. Your marketing team has to develop strategies to convince customers to buy your product, and your sales team focuses on generating more revenue for the company. In the same way, your customer service teams take care of your customers to lead the business to growth, loyalty, and sustainability.
It is no secret that customer service is one of the essential factors in any enterprise. But that is the thing. If you have a small staff who is more focused on other tasks, like marketing and sales, chances are your customer service department comes a little short. In this article, you will learn why customer service is important and how to better train your team to any need your customer has.
1. Customer Retention
When a customer likes a product, they will most likely buy more of it. But what happens when the customer loves your product but always has trouble with shipping? In this situation, some customers will decide to stop buying the product, but the vast majority will call your company to fix the problem. This instance is vital to improving your customer support. There are simple policies you can implement to fix this issue. Offering a faster delivery service or an easy return policy are some of the best ways to go.
2. Brand Reinforcement
Customers relate every experience with your product to your brand. Having brand awareness is great, but it doesn't come for free. The more positive experiences a customer has with your business, the more likely they will come back to buy more of your services. This is one of the reasons why customer service is important. By having impeccable customer service, where your representatives are empathic, practice active listening or follow any of these tips, you will create customer loyalty. Be positive!
3. Increases Referrals
We all have that aunt that tells us that they called a particular company to complain about something and the representative was able to fix their problem quickly and with a solution your aunt liked. Chances are you would be interested in this company only because your aunt told you she had a good experience. Your customer service department works to help people. The more happy customers you have, the more they recommend your company to their friends and family.
4. Increases Customer Lifetime Value
According to Indeed, Customer Lifetime Value (CLV) is the estimation of potential revenue a business can expect a customer to generate over the period of time that the business retains that customer. This definition means that a few genuinely loyal customers are what make your company stay afloat. The more CLV they will generate for your eCommerce business by providing excellent customer service to your clients. Moreover, if you are close to presenting a new product, or a new deal, it is easier for your marketing team to focus on these loyal customers first and then target the rest of your audience.
5. Strengthens Company's Values
Chances are you have not looked at your company's vision and values ever since you created your eCommerce business because your mind is set on different things right now. But, you chose these values and vision because they represent who you are and how you want customers to view your company. You can teach these values to your customer service team, and they will take learn them, practice them, and embrace them. When your customer support team understands your values towards the company, they will start representing them and pass them on to your clients. The point here is, you have to create a company culture, a culture of teamwork and empathy.
6. Saves Budget for Marketing
When marketing to loyal customers, your team already knows what works and what does not. This knowledge helps your eCommerce business to better target consumers across the globe. Your marketing force will already have your company's buyer persona on point and target people with similar tastes and needs. In addition, by combining this tip with number three, your customers become your marketing team. Therefore, the budget for exploring new consumers opens up, attracting more customers to your business.
7. Gives a Competetive Advantage
We always hear that delivering excellent customer service is the edge a company needs to stand above the rest. And, if you have fierce competitors, you must stand above them. Training and keeping track of your customer care team will create a gap between you and your direct competitors. Customers will start buying your product because of the excellent customer service you offer and most likely will become loyal customers to your brand. Moreover, it strengthens your company's reputation in the marketplace by showing consumers you care about your customers and are concerned about their needs.
8. Increases Business Longevity
Lastly, it all comes down to your business surviving these tumultuous times, and this is another reason why customer service is important. With great customer service, your clients will advocate for you in any trouble you encounter, and if you keep them happy, they will keep spending their hard-earned money on your eCommerce business. Customer service helps your company keep your clients satisfied and coming back for more, and if they come back for more, there is no reason to worry. Remember, a few truly loyal customers are the ones that keep any business afloat. Focus on keeping your employees happy, and they will keep your customers satisfied.
Why Customer Service is Important
Customer service is one of your most valuable assets. It provides a level of responsiveness that builds rapport and trust with clients. And as we mentioned before in this blog, trust is vital to any company nowadays. If a customer cannot trust you or your products, the less likely they will return. But, if you offer them solutions to all of their problems regarding your products or services, they will return. Harness its power, and you will start seeing changes in your eCommerce business.