How Great Customer Service on the Phone Generates Customer Loyalty

how to build customer loyalty with great customer service

Too often, customer service is cast in a negative light, but there’s another side to this coin. Studies repeatedly show that customer inquiries and disputes can actually improve your business reputation and grow your revenue. When handled with care, disgruntled customers have the potential to become your brand’s most loyal followers.

Increasing Brand Loyalty With Customer Service

Strong customer service builds trust and increases brand loyalty. When you provide consistently excellent service, it becomes a defining feature that has a ripple effect across your business and its bottom line. Increasing customer retention by 5 percent can increase profits by 25 to 95 percent, according to the consulting firm Bain & Company. Numerous studies have reaffirmed these findings.

  • In its 2018 Consumer Action Monitor report, the consumer advocacy group Ombudsman Services found that 36 percent of customers had a better opinion of companies that handle complaints efficiently.
  • The organization reported that 75 percent of customers who had a well-handled complaint go on to make repeat purchases. These customers are an asset because they spend 33 percent more than first-time buyers on average.
  • American Express found that approximately 70 percent of Americans are willing to spend 17 percent more if the company offers excellent customer service. Additionally, two-thirds of consumers have spent more after positive customer service experiences.
  • Research shows that customer retention programs are a cost-effective investment. The Harvard Business Review found that it costs five to 25 times less to keep a customer happy than to acquire a new account.

Providing Outstanding Customer Service Over the Phone

According to the annual Customer Service Barometer report from American Express, clients look for three things when contacting a call center. Each of these qualities can be developed through employee training and company policies.

  1. The most important trait is efficiency. Customers favor representatives who can answer their questions quickly. Additionally, most folks only tolerate maximum hold times between 5 and 10 minutes.
  2. Along the same lines, customers prefer working with empowered representatives who can answer all of their questions and resolve their issues without transferring them to another department.
  3. Empathy is another essential quality. It’s not surprising that customers give better ratings to call center agents who have a caring attitude and take the time to connect with them personally.

Service provided by customer contact centers can have a negative or positive impact on your business. The stakes are high. In most cases, it takes only one bad experience to send customers walking. However, positive interactions can be just as contagious. Scandinavian researchers found that good customer service enhances a company’s corporate image, which correlates to increased customer loyalty.

To learn more about building a successful branded contact center, get in touch with our experts today. Ameridial is a U.S.-based company with more than 30 years of experience outsourcing inbound and outbound call centers and providing outstanding customer service.