Singing Canary

Communicate with Impact

The Impact of Customer Service on Acquisition and Retention (pssst yes, even in 2024!)

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I started work as a young sixteen year old in the retail industry and carried on working whilst I was studying for my degree. Originally, I started working for a tiny little shoe shop in the local high street which was very customer facing and Saturday’s were especially busy. I was later promoted into a leadership role and was the Weekend Supervisor running the entire department alone at seventeen years old for Kurt Geiger in House of Fraser for their busiest store on Oxford Street. Under my supervision, Sunday’s were the hottest ticket in town and our sales figures had never looked as healthy! My team and I ROCKED it every weekend. I still remember Tim (our area manger) telling me how proud he was of me but he may have been a bit biased as he interviewed and hired me too. Those were good times and we were a great team! WE ARE EXCELLENCE – KURT GEIGER FOREVER! Still a loyal customer X

How did I manage to achieve such high sales figures for a quiet Sunday?

Lots of strategic thinking. Every person who was hired by my company had to go through a complete rigorous training schedule. One of those modules was for Customer Service. Without going into too much detail, it was a complete breakdown of how we should treat each and every customer who entered our department – from entry to end service, including after-sales. When I shop now in 2024, it seems customer service is dead. This isn’t a nostalgic post for the good old days. It is however, a post highlighting the importance of customer service in a digital age.

Do you treat every person who comes into contact with your brand the same? Is everyone in your organisation singing from the same hymn sheet and upholding your brand values in public and private? Consistency is vital.

Sobia Iqbal

Have you ever had a terrible customer service experience that made you never want to do business with a company again?

I have and never bought from them again nor recommended them to anyone. The opposite to that is when I’ve had such a fabulous customer service interaction that has made me loyal and possibly to make me want to purchase again and again!

Here’s a harsh truth and lesson – CUSTOMER SERVICE CAN MAKE OR BREAK YOUR COMPANY’S SUCCESS. There are plenty of hustlers online who don’t understand this basic business premise probably because they are being influenced by coaches who don’t have any real business experience. Serious business leaders think carefully about customer service as it has a significant impact on both acquiring new customers and retaining existing ones. It should always be a top priority for your business.

Customer Acquisition

Acquisition simply means ‘acquiring new customers’. It’s the first point of contact for your business and it can make a lasting impression – in a good or not so good way! When trying to convince a new customer to choose your business, they must leave with a positive experience otherwise they’ll go elsewhere and with markets being saturated in the digital age, tell me why would they choose you over someone who treats them like the KINGS OR QUEENS they are? Alternatively, if you keep bashing your head against a brick wall and wondering why nobody’s buying, let me save you time and tell you it’s your awful customer service experience which is turning potential customers away. Remember, even in a digital age, word-of-mouth marketing and reviews are important and it’s never been more difficult for businesses to ensure they are treating customers properly.

A business that prioritises customer service is more likely to build a strong relationship with it’s customers. This builds brand loyalty and is a key to customer retention. If you are great at acquiring new customers but there’s no retention, best to take a long hard look at your customer service strategy. I’m pleased to say we had great retention at Kurt Geiger – loyal to the end and if I didn’t have something in stock, I acquired products from other local stores and secured purchases. Happy customers, happy company bank balance!

Customer satisfaction = Customer LOYALTY

Customer satisfaction and customer loyalty go hand in hand. A satisfied customer is more likely to become a loyal customer, and a loyal customer is more likely to remain satisfied with a business. It’s a virtuous cycle that can have a significant impact on a business’ success.

They may also recommend the business to friends and family, providing the business with new customers through referrals and word-of-mouth marketing. A satisfied customer is also less likely to switch to a competitor, which helps to increase customer retention rates. The opposite happens when you don’t prioritise customer satisfaction. You cannot afford to have FAVOURITE customers in business. So, you’re serving some the best and others who aren’t that important, as less? Every customer brings in revenue and/or word-of-mouth marketing about your service.

Excellent customer service is one of the key drivers of customer satisfaction. When a customer feels valued and heard, they are more likely to be satisfied with their experience. Additionally, businesses that consistently meet or exceed customer expectations are more likely to build loyal customer relationships.

Negative customer service experiences impact retention. There are many options to choose from and poor customer service will drive them away into the arms of the ones who treat them with the care they desire. A really bad, negative experience can cause customers to feel angry and frustrated and will more often than not result in long-term damage to the customer-business relationship. Quite simply – “I ain’t coming back blud”.

It’s important for businesses to prioritise customer service and ensure that they are consistently meeting customer needs and expectations. Providing excellent customer service can have a major impact on business growth. This can result in increased revenue and profitability for the business.

Here’s a simple formula for good customer service = increased customer loyalty + improved reputation + increased customer lifetime value + differentiation from competitors = PROFITS AND GROWTH. KERCHING!!

In order to create a customer-centric culture in your business, it’s important for businesses to prioritise customer service and ensure that all employees understand the importance of meeting customer needs and expectations. This can involve regular employee training and development, as well as a focus on customer feedback and continuous feedback.

CLV – The relationship between customer satisfaction and customer lifetime value is a close one. What makes someone come back again and spend huge amounts of money? WE KNEW IT AT KURT GEIGER and funnily enough i’m still a loyal customer almost 24+ years later!

With the rise of digital technologies, customers now expect a more convenient, personalised, and efficient customer experience. Unfortunately, an increase usage of technology has also caused lots of problems for businesses as well as benefits.

For example, AI and machine learning are becoming increasingly important in the customer service space. AI-powered chatbots can provide 24/7 customer support, even when human agents are unavailable. This is also the single most frustrating and annoying experience a customer ever goes through. You still need to have some form of human contact. If you don’t, quick fix it! This will affect your reputation and profit if you’re unable to resolve complaints or deal with issues in a timely manner.

Poor customer service is costing UK businesses £11.4bn a month in lost productivity

….the UK Institute of Customer Service (ICS), found satisfaction was falling year-on-year, with nearly 17% of consumers reporting issues with a trader.

Anna Timms

Additionally, machine learning algorithms can help businesses to predict customer needs and provide more personalised customer experiences – although be careful not to be too intrusive as this also irritates customers. Omnichannel customer service refers to a seamless customer experience across all channels, including phone, email, chat, and social media. By providing customers with a consistent, reliable experience across all channels, businesses can improve customer satisfaction and loyalty. Be warned though, customers can spot incongruence from a mile away so always ensure you’re delivering too. There’s nothing worse than a brand that over-promises and under delivers – it makes us want to scream, tear our hair out and to never part with our cash again.