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Steve Isenberg

Why Customer Service should be a Top Marketing Strategy

Posted on: July 10, 2018

By: Steve Isenberg

Good customer service, that is.

No, wait. Not good but great, outstanding, superlative customer service.

The two not only should go hand in hand, it’s impossible to separate them. If customer service and marketing do not share a harmonious relationship, the most impressive marketing campaign will struggle to net results. Customer service IS marketing. Plain and simple.

Consider these sobering stats:

  • S. companies lose more than $62 billion annually due to poor customer service.
  • 33% of Americans say they’ll consider switching companies after just a single instance of poor service.
  • More than half of Americans have scrapped a planned purchase or transaction because of poor

Then, check out these enticing figures:

  • After having a positive experience with a company, 77% of customers would recommend it to a friend.
  • 7 out of 10 U.S. consumers say they’ve spent more money to do business with a company that delivers excellent
  • A moderate increase in Customer Experience generates an average revenue increase of $823 million over three years for a company with $1 billion in annual revenues.
  • Increasing customer retention rates by 5%, increases profits anywhere from 25% to 95%.

These numbers paint a clear picture of the positive marketing impact of both excellent customer service and the devastating effect of less-than-stellar customer service. This data reinforces the crucial point all organizations must grasp:  No matter the business, the product or service offered, every company is actually selling customer service.

This Appointment Plus blogger sums it up well:  “Every touchpoint an employee has with a customer is a marketing opportunity, whether it’s an overt advertisement, a sales call, or even a frustrated customer calling in with a problem. In fact, the latter scenario poses the most potential for you to turn a negative brand situation into a positive one. All it takes is knowing how to maximize those interactions.”

It’s a given that future sales to existing clients are the bread and butter that keeps a business, well, in business. The likelihood of ringing up another sale for past customers comes in at 60-70% while reigning in new prospective buyers registers considerably lower on the future sales meter, at just 5-20%.  That’s why it’s easy to succumb to the mindset that limits the impact of excellent customer service to that of retaining current customers. The repeat customer ratio becomes all-consuming, to the point that viewing excellent customer service as an actual marketing tool becomes a hazy concept some have difficulty wrapping their head around.

How do potential clients describe customer service that drives their shift from prospective client to buying customer? What customer service experiences will guarantee the customer keeps on shopping?

Check back next time for the specifics that will make customer service function as an effective marketing strategy.

At ASJ Partners, we are the experts at accelerating revenues for staffing and recruiting firms. Our six-step process results in unique, customized, and highly targeted marketing programs that will net success for your organization. Give us a call today.



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