Customer experience has a huge impact on how much revenue your business generates. Research shows that 84% of companies that work to improve their customer experience report it helps increase revenue from customer service.
As a result, focusing on providing outstanding customer service to improve customer experiences is integral in driving revenue and profitability. Many people assume that customer service is nothing more than a cost center. But if approached with a revenue-oriented mindset, your customer service team can take advantage of customer interaction to unlock more sales opportunities.
So in this post, we’ve compiled 5 ways to generate revenue from customer service. Let’s get started now!
Table of Contents
What is customer service?
Customer service is basically the support and assistance that you provide to your customers before, during, and after they make a purchase from your online store. It’s all about ensuring that your customers have a great experience with your business and feel valued.
This includes things like answering their questions, helping them with any issues they may have, and making sure they are happy with their purchase.
Good customer service is super important for building a loyal customer base and creating a positive reputation for your ecommerce store. So, always make sure to put your customers first and provide them with top-notch service!
How can good customer service help you generate more revenue?
Good customer service is not just about being nice to your customers, it can actually help you generate more revenue for your ecommerce store. Here’s how:
Happy customers are more likely to make repeat purchases
When customers have a positive experience with your customer service, they are more likely to come back and buy from you again. This means more revenue for your store in the long run.
Word of mouth advertising
When customers have a great experience with your customer service, they are more likely to recommend your store to their friends and family. This is a powerful form of advertising and can bring in more customers to your store.
Higher customer satisfaction leads to more sales
When customers are satisfied with your customer service, they are more likely to make a purchase. They’ll also be more likely to make larger purchases or add additional items to their cart.
Resolving issues can prevent lost sales
If a customer has an issue with their order or has a question, and your customer service team is able to quickly and effectively resolve the issue, you can prevent the customer from canceling their order or leaving a negative review. This means you won’t lose out on that sale, and you’ll have a better chance of keeping that customer for future purchases.
5 ways to increase revenue from customer service
Request customer reviews and respond to them publicly
When customers see that you care about their feedback and are actively working to address any issues or concerns they may have, it builds trust and loyalty. They are more likely to return to your store and make repeat purchases.
Additionally, customer reviews are a powerful tool for attracting new customers. When potential buyers are browsing your store, they will often read through reviews to see what others have experienced. If they see that you have a lot of positive reviews and that you are responsive to customer concerns, they will be more likely to make a purchase.
By responding to reviews publicly, you also have the opportunity to showcase your excellent customer service skills. This can set you apart from your competitors and further build trust with your customers.
Create customer advocates and increase referrals from them
When a customer has a great experience with your store, they are more likely to share it with their friends and family. This word-of-mouth marketing can be incredibly effective in driving new business to your store, especially since people tend to trust recommendations from people they know more than any other form of advertising.
By turning your happy customers into advocates, you can tap into this powerful marketing channel and attract new customers at a relatively low cost. All you have to do is provide a great customer experience and encourage your customers to share their positive experiences with others.
Treating customer service as an integral part of the buyer’s journey is a productive step toward creating brand advocates for your customers. Below are some practical ways that your customer service team can provide delightful support and encourage customer advocacy.
- Answer to customer queries as soon as possible
- Provide customers with omnichannel customer service
- Provide tailored support
- Avoid asking customers to repeat basic information
- Reward customers with discounts, promotions, and loyalty programs
- Be polite, professional, and helpful to customers
Instead of waiting for customers to spread good words about your brand, your customer service team can proactively ask for a referral. If the customer is happy with your product and support, they’re willing and happy to do you this favor. If it is cost-effective for your company, you could also offer customers incentives to recommend your solution to friends and colleagues.
Increase the customer lifetime value
So, first let’s learn what exactly does customer lifetime value (CLV) mean? Basically, it refers to the amount of money a customer is likely to spend on your store over the course of their relationship with you. This includes all of their purchases, as well as any other interactions they have with your business, such as customer support inquiries or social media engagement.
Now, you might be wondering why increasing CLV is such a big deal. Well, there are a few reasons. For one thing, customers who have a high CLV tend to be more loyal to your brand. They’re more likely to keep coming back to your store for future purchases, and they may even recommend your business to their friends and family. This can help you build a solid customer base over time.
Additionally, customers with a high CLV can be more profitable for your business in the long run. Since they’re likely to make more purchases, you can expect to earn more revenue from them over time. Plus, since they’re already familiar with your brand and your products, it may be easier to market to them in the future.
So, how can you increase customer lifetime value? One way is to focus on providing excellent customer service. When you go above and beyond to help your customers, they’re more likely to feel valued and appreciated. This can lead to increased loyalty and a higher CLV overall.
Some specific strategies you might try include offering personalized recommendations based on a customer’s past purchases, providing fast and effective support when they have questions or issues, and creating loyalty programs that reward customers for their repeat business.
Turn your customer service team into your best salespeople
Today’s customer service no longer sticks to an expensive cost center that doesn’t contribute to the bottom line of a business. Support agents now are more and more proactive and have many chances to increase revenue from customer service while interacting with customers.
All you need to do is give your agents the tools they need to increase revenue from customer service. With the right tool in place, your team can have a 360-degree view of the customer, order history, and conversation history. As such, it becomes easier for your agents to know customers’ preferences and provide tailored product recommendations.
Using a customer service platform like NestDesk, you can easily view customer profiles and create orders for customers while chatting with them. This way, customers can skip the long buying process and you also win sales faster right from the chat portal. Stop switching all day long and turn every customer interaction into a sales opportunity.
Collect insightful customer feedback to improve your product
Successful products or services are the ones that solve customer problems and meet their needs. So if you want to develop a winning product, don’t neglect what customers say and feedback when contacting your support team.
Customers’ questions to your support team are the exact reflection of their requirements and expectations. Ensure that your support agent notifies your development team anytime a customer has an idea or a problem that your current solution can not solve. Here’s when you get the most helpful feedback and proven ideas to improve your product.
Besides, it’s also necessary to label your customer service message to easily track common issues and requested features. Labels/tags assist in bringing to light the areas that require the most improvement so that your development team can focus on them with ease.
Start closing more sales from customer service from now!
With a revenue-driven mindset, your customer service can also turn into a powerful sales channel and turn more visitors into customers. Make sure that your customer service team works on the same page and is equipped with the necessary tools to better support customers and close sales.
If you are finding a customer service tool to convert your customer service into a profit center, try NestDesk for free now!
