10 Apr
2019

Five reasons to invest in customer service

The rapid expansion of multi-platform selling has led to a huge increase in competition between travel service providers. As an industry, we are all keen to show the buying public why we should be entrusted to provide them with their holidays. Whilst we are all busy jostling to find our place within this rapidly-evolving holiday market, our customers have found themselves in the highly enviable position of having greater buying power than ever before. 

One of the luxuries of being spoilt for choice is that you can afford to be picky. Customers are increasingly quick to voice their intolerance of poor customer service and have no hesitation in switching provider, if they have a negative experience that hasn’t been put right. Businesses must be capable of providing a consistent and positive brand experience, whilst also demonstrating that they are capable of remedying problems if they arise.   

1. Growth

Customers can now browse beyond mere products and services and consider how the brand itself fits with their lifestyle and values. Excellent customer service can help to elevate your business to new heights and set you apart from your competitors. Poor service can quickly tarnish your brand’s reputation and hinder growth. Customer service has long been recognised as an essential revenue driver, but so often goes overlooked. Pitching your customer support at the right level to balance competition, customer demand and your commercial reality is often the key to ensuring the growth of your business. 

2. Retention 

Brand loyalty can be a powerful asset. Customers want to feel unique and valued. Having great customer service strengthens your customer relationships and deepens the trust in your brand, minimising any risk of your customers becoming detractors or seeking alternative services elsewhere. 
By contrast, an absence of relationship management can be fatal. Customers can be quick to hold companies to account for their actions when disappointed. Tackling issues that arise with empathy and understanding can deepen the brand/customer relationship and make it stronger. Effective problem solving and complaint handling form an essential part of any good business model for precisely this reason.  

3. Word of mouth

We live in a hyper-connected world. Engaging customers so they become loyal ambassadors for your brand is invaluable. When you have a great product and excellent customer service, a word of mouth strategy can soon outweigh costly ad campaigns. Spanx, for example, became a billion-dollar company through word of mouth without Sara Blakely having to spend a penny on advertising. Dissatisfied customers are more likely to complain, though. Owning the customer journey and managing their expectations every step of the way is essential.

4. ROI

Building customer loyalty and increasing business revenue go hand in hand. Many customers are willing to pay more for a service, where they feel confident that they will be well-supported and receive a positive experience, in return. Consider your bottom line. Driving sales is great, but if the aftercare is poor, the money you’ll spend resolving the issues and restoring the resulting loss of faith will soon outstrip your profit. It can be very costly repairing damaged relationships, so consider the value you can add to your customer’s experience via the service you provide. Investing in the relationship can help you to cement their loyalty to your brand and protect the profit to your business. 

5. Internal customers

Poor customer service goes beyond the effect it has on your customers; it can also be incredibly demoralising for your staff. Internal customers can be overlooked when developing customer experience strategies, despite there being an obvious correlation between employee and customer satisfaction. How well you align your key brand strategies with your customer service policy will dictate how successfully the customer perceives you as delivering on your promises. If your policies are flawed and disjointed, with your staff delivering on this day to day, morale will deplete and you will soon see this reflected in your booking figures. Having a positive, well-structured customer experience strategy promotes positive engagement from your staff. Invest time in training and supporting your teams, whilst also providing them with a cohesive and consistent business model that they can be confident delivering.  

Conclusion

Customer service is fluid. Adapting to new landscapes and evolving customer demands is paramount. Investing in customer service excellence does not have to equate to high financial outlays. Simply investing time and consideration towards your staff and your customers can add its own immeasurable value to your brand.   

Author: Georgina Hunt, Legal Executive, Customer Support, Kuoni

Georgina Hunt will be speaking at ABTA’s upcoming Delivering Customer Service Excellence seminar on 15 May 2019 at ABTA’s offices. Georgina will be joined by expert speakers from companies including the Institute of Customer Service, Virgin Holidays, dnata, Feefo, Freshworks, Arena Travel and ABTA. To see the full agenda and book your place click here.