"It's 7 to 10 times more expensive to generate a new customer than it is to sell to an existing customer"We nod our heads in agreement, and promise we'll get to work on that whole customer service & retention marketing thing really soon, and then go back to buying more PPC search ads.
Why? Well, it's easier to avoid the inevitable messiness of keeping customers happy. Marketers usually don't have direct oversight of the call center or customer care function, and are often more focused on demand generation than retention and loyalty programs.
Because we offer outsourced call center services, I get a close look at the effects of good and bad customer service. Good customer service can mean a lot of things, but mostly it means keeping the customer well-informed post-sale and pre-delivery, and being available and responsive when unexpected problems arise.
Most customers become irate when they sense they are being ignored, making them feel powerless. Some will attempt to gain control of the situation by lashing out at the retailer in any way they can. We've all heard the horror stories about disgruntled customers building a website like www.YourStoreNameSucks.com
That probably won't happen if you train your customer service agents to actively listen and communicate to your customers, and give them clear procedures for common problems. A quick email update, or a few minutes spent working with a customer can have a big impact on your bottom line.
One of our new call center clients decided to shut down their in-house call center when they realized that cancelled orders alone cost them nearly a million dollars in revenue last year, most of which could have been saved with better customer service.
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