When times are tough, you might be tempted to cut back on customer support. On the surface, it might not seem like customer support brings in much revenue. However, it’s important to think about both long-term growth and short-term performance. And customer support just happens to be one of the best ways to achieve long-term success for any business.
Great customer support creates great customer experiences, which in turn creates higher customer retention rates and lower churn rates.
In other words, customer support equals customer experience equals customer loyalty and, ultimately, that means more dollars in your pocket. In fact, 32% of customers say that they will leave a brand, even if it’s one they love, after just one bad customer experience.
Customer acquisition costs are almost always higher than customer retention costs, so why do we still continue to prioritize chasing after new customers that may or may not actually want our product? If it really comes down to a decision between customer acquisition and customer retention, customer retention should always win.
This is not to say that you should stop caring about the cost per acquisition, cost per lead, or cost per conversion for new customers. These acquisition metrics will always be important to help keep your marketing, advertising, and sales costs down. However, when it comes to budgeting, it’s a good idea to consider the entire customer funnel from beginning to end, not just the top of the funnel.
So, the next time you find yourself agonizing over your customer acquisition costs going up by just a dollar or two, try to dedicate some time to analyze your customer retention metrics, too. In fact, good customer support can actually reduce your marketing, advertising, and sales costs and help you trim some of the unnecessary spendings in your business’ budget.
Loyal customers who have benefited from good customer support become powerful brand advocates who can help lower your acquisition costs.
Investing in customer experience now will yield future brand loyalty, earned media, and customer referrals in the future — all for free. Your loyal brand advocates will continue to purchase from you, while also building brand awareness for you by inviting their friends via word-of-mouth referrals.
Building a good customer support team is a win-win. You’ll lower your spend on marketing, sales, and advertising, and you’ll get a loyal fan base in return. No grassroots or guerilla marketing campaign that you manufacture will ever resonate better with your potential customers than the genuine referrals, reviews, and testimonials that your returning customers organically create for you.
With so many similar product offerings on the market, more than two-thirds of marketers say that it’s their company’s customer experience that makes the difference — not their actual product. It’s time to invest more into your customer support so that you can start selling your customer experience.
The easiest way to create an amazing customer experience is to offer live chat on your website.
75% of customers prefer live chat over any other customer support channel. That’s a really lucky thing for you because live chat also happens to be the easiest way to create an amazing customer experience.
We may be biased, but TextChat is the easiest and fastest way to get started with customer support — unlike other live chat tools, we don’t require any apps, any logins, or any other barriers to entry. Get started with TextChat for free on the Shopify App Store, and start growing your customer loyalty today.