Customer Service Will Make or Break Your Brand

Your Brand and Customer Service 

By Marc Petock 

While there are many factors that go in in making a brand successful, and contribute to its longevity and relevance, there are also factors which cause a brand to deteriorate and lose its appeal. This holds true whether your brand is a consumer brand, or it is a business-to-business (B2B) brand. 

One of those factors is customer service. It can make or break a brand. 

Customer service is a critical aspect of any brand’s success and plays a pivotal role in shaping its reputation, fostering loyalty, maximizing lifetime value, and driving business growth.

A recent survey reveals just how customer service influences a customer to stay or abandon a specific brand. According to the third annual “Consumer Insights about Customer Service” survey, conducted by One Poll:

“73% of respondents are likely to abandon a brand after just one poor customer service experience.” 

Also, when asked how likely or unlikely they were to make additional purchases with a brand after a positive customer service experience:

“81% of the respondents said they were highly likely or somewhat likely to do so.”

Furthermore, the survey showed that many respondents discussed their customer service interactions, both positive and negative online and that:

“69% of respondents would be willing to pay more for brands with good customer service.” 

Let us look at a few reasons why customer service is of utmost importance to a brand:

Satisfaction and Loyalty.

Good and strong customer services lead to higher satisfaction levels. Satisfied customers are more likely to become loyal advocates for your brand, through repeat purchases, promoting it and recommending it to others. Loyal customers tend to stay with a brand for the long term which results in a stable base of customers. 

Reputation and Trust. 

The way a brand handles customer interactions directly impacts its reputation. Brands known for exceptional customer service are regarded as trustworthy, and dependable, which attracts more customers and positively influences their purchasing decisions. On the other hand, poor customer service can quickly damage a brand’s reputation and deter potential customers. 

Competitive Advantage.

In a highly competitive marketplace, exceptional customer service can set a brand apart from its competitors. When customers have similar product choices, quite often service is the differentiating factor that leads them to choose one brand over another. 

Lifetime Value.

Customers who receive excellent service are more likely to make repeat purchases and spend more money over their lifetime. This boosts the customer lifetime value (CLV) metric, which is crucial for the brand’s financial success and sustainability.

Product/Solution Improvement.

Good service and interactions provide valuable feedback and insights into customer needs, preferences and pain points which can be used to improve existing products and help guide future offerings and innovation. 

Referrals.

Satisfied customers are more inclined to recommend brands. Positive word-of-mouth referrals can attract new customers at little to no marketing cost.

 Conclusion

Customer service is part of the backbone of a successful brand. Brands that prioritize customer satisfaction, responsiveness, and engagement build strong relationships with their customers, foster loyalty, and create a positive image that can withstand challenges and competition in the market. Investing in quality customer service is an investment in the brand’s long-term growth and prosperity.