“One customer well taken care of could be more valuable than $10,000 worth of advertising” – Jim Rohn
Customer service is an integral part of an organization. Good customer service helps to promote organizational benefits and helps to maintain long term customer relationship.
To achieve the best customer service results, employee needs to be trained on customer service etiquettes. The customer service training plays a crucial role, in imparting the key skills, required for good customer service.
Let’s have a look at some statistics:
- Businesses in the US spend more than $214.3 billion (Zendesk Nation, 2011) for advertising, but only 4% of Americans trust advertising as a source of product or service information. Statistics say that on average, it costs five times more for businesses to secure new customers, than to keep existing customers (Tourism BC, 2006). Clearly, it infers that retaining existing customer yields more returns, than advertising and hence, retaining existing customer requires effective customer service.
- The statistics from the Zendesk source states that the 82% of customers discontinued purchasing from the companies that failed to deliver the best customer service.
- The article by Mr.Ray Miller states that only 12-14% of customers leave for product reasons, whereas 68% leave because of poor customer service by employees.
- The article by Mr.Ray Miller states that a 5% in customer loyalty will contribute to 25% – 125% directly to the bottom line. He says that in this market, companies are losing at least half of their satisfied customers, because of lack of customer focus.
Now let’s have a look at the reasons to invest in customer service training:
- Customer service training for employees leads to existing customer satisfaction, which in turn reduces the cost of capturing the new customers.
- Customer service training helps the employees build a better customer experience, where the satisfied customer reviews attract new customers.
- Customer service training helps the employees to know how to apply the effective soft skills on the job, while interacting with the customers, which results in satisfied customers increasing business productivity.
- Customer service training not only equips the employee with effective soft skills required to perform the job, but also leads to job satisfaction, which helps the employees to focus on the organizational benefits.
The organizations of today are adopting modern ways of trainings like web based training, blended learning and many more methods to successfully meet their training needs. Customer service training can also be done through e-learning. In my next blog I will be talking about Scenario based approach for Customer Service Training.
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