In any business, it is imperative that customer service is given a high level of importance and that it is seen as an integral part of the overall product or service offered. Achieving success is not simply about creating a great product or service; it also requires a strong focus on providing excellent customer service. To achieve longevity, a high-value brand image, a strong team, and healthy sales and capital, businesses must prioritize customer service as a key component of their overall strategy. Failing to do so can result in significant challenges and ultimately lead to failure. Companies must recognize the importance of customer service and work to ensure they provide their customers with the best possible experience.
According to the Pareto principle, also known as the 80/20 rule, a business’s sales are heavily dependent on a small portion of its customer base. Specifically, just 20% of the customers are responsible for 80% of total sales. This rule plays a crucial role in business and should not be overlooked if your company aspires to compete and generate sales. Based on research conducted by Deloitte, companies that prioritize their customers see a significant increase in profitability of up to 60% compared to those that do not prioritize their customers. Unfortunately, many companies are failing to abide by this guideline, causing a decrease in their customer service metrics.
The Institute of Customer Service and its UK Customer Satisfaction Index (UKCSI), which measures national customer satisfaction, has released their latest statistics for customer service. According to their findings from January 2023, the UK’s customer service score is 77.7 out of 100, a decrease of 0.7 points compared to both July and January 2022. Based on the UKCSI report, a troubling 16.5% of customers have encountered issues with various organizations. This figure remains unchanged from the previous year but has spiked by a concerning 2.9 points since January 2020.
Customer service includes all the ways your business deals with customers before, during, and after a sale and the activities involved in dealing with customers. When engaging with customers, it is of utmost importance to uphold ethical values such as transparency, dependability, competence, politeness, and, most importantly, simply being there to help. If customers consistently receive inadequate service, it is in your best interest to implement tactics aimed at improving their satisfaction.
For businesses facing customer service challenges, adopting a customer-focused culture can be helpful. This can be achieved by investing in training, simplifying the return and exchange process, personalizing customer care, and possibly even incorporating additional automated services. When it comes to elevating the quality of customer service, outsourcing can prove to be an excellent solution for businesses to explore.
By enlisting the help of external service providers, businesses can tap into additional expertise, resources, and tools to deliver top-notch customer support. This, in turn, can lead to increased customer satisfaction, loyalty, and retention, all of which are vital for long-term business success. Many businesses are now outsourcing their customer service teams, which is predicted to become a significant trend. According to Deloitte, worldwide spending on outsourcing may reach $731 billion by 2023. And according to YouGov, 70% of UK B2B decision-makers have already delegated essential services to third-party companies. Of those services, 6% include customer service, and 11% involve marketing and public relations.
For many years, outsourcing has been a useful tool for businesses. However, it is now gaining more attention as more companies recognize its numerous advantages. Once considered an offputting concept, outsourcing has now become a common term in business. To explain why outsourcing is beneficial for businesses, we can refer to the words of American radio commentator Larry Elder who once said, “Outsourcing and globalization of manufacturing allows companies to reduce costs, benefits consumers with lower-cost goods and services, causes economic expansion that reduces unemployment, and increases productivity and job creation.”
If you’re thinking about outsourcing your business needs, get in touch with us today. We can assist in expanding your business and meeting your sales goals with exceptional customer service.