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Winning new business is often challenging for small businesses, especially those with tight marketing budgets or entering crowded markets. Building a reliable future pipeline and maintaining steady cash flow in the short and medium term can be tough.
However, customer service is increasingly becoming a powerful tool in the marketing and sales arsenal. As customers increasingly view the quality of service as a key factor in choosing between competitors, businesses can leverage excellent service as a differentiator.
In fact, over 60% of customers report they would switch to a new provider after just one bad experience.
In this blog, we explore how strong customer service can serve as a cost-effective marketing strategy for small businesses.
Over 75% of customers consider reviews of a company's customer service when deciding whether to make a purchase or engage in business.
This makes customer service a critical differentiator, especially in crowded markets where products and services are often similar to those offered by competitors.
While there are many factors beyond your control in business, the experience you provide customers is entirely within your hands. Establishing a reputation for delivering superior and dependable service can help set you apart and give you an edge over much of your competition.
Nearly 90% of customers are more likely to return to a business and make repeat purchases after experiencing good service.
It’s well-known that retaining customers is far more cost-effective than acquiring new ones. Loyal customers tend to have a higher lifetime value, thanks to their repeat purchases, compared to those who make a single transaction and move on.
Since customers place significant importance on service when deciding whether to continue working with a business, investing in excellent customer service can yield substantial benefits for small businesses aiming to build a loyal customer base.
A major hurdle for small businesses is the limited social proof that demonstrates they can deliver on their promises.
Social proof includes reviews and testimonials from past or current customers who affirm their satisfaction with your products or services.
For smaller businesses, which may lack the brand recognition of larger companies, positive reviews and testimonials are crucial for building trust with potential customers. This makes gathering and showcasing social proof even more essential.
Small businesses often face budget constraints that limit spending on marketing and sales efforts to attract new customers.
An effective way to gain new business without incurring these costs is through referrals from your current customers.
When existing customers recommend your services to their network, it can be more impactful than traditional advertising or organic marketing methods like content creation.
The key to building loyal brand advocates is by consistently offering exceptional service that sets you apart and makes customers eager to refer others.
Additionally, customers acquired through referrals tend to stay longer, as they come with a built-in trust from seeing you successfully serve someone they know.
For small businesses, great customer service can be as effective as a well-executed marketing campaign. By treating every customer interaction as an opportunity to build your brand, encourage referrals, and create positive reviews, you can achieve many of the benefits of marketing without the high costs. This approach helps create a sustainable pipeline of new business from a base of satisfied customers.
If you’re looking to enhance your customer service and, in turn, your marketing results, consider using services like telephone answering or managed live chat. These services can help ensure that every customer interaction is handled professionally and efficiently, leaving a lasting positive impression.
Get in touch with us to find out how our telephone answering for small business and managed live chat can help improve your customer service and help grow your business.
Start a free trial or give us a call on +1 833-415-3341
