The retail space is crowded in these modern times. With a combination of brick and mortar stores combined with an onslaught of digitally connected storefronts, there are many choices for a consumer. Every business must have good customer service, no matter if the store has a physical location or is just using eBay as the storefront.
Social media spreads news fast
The world is more connected now than in any other time in history. Sites like Facebook and Google + battle with applications like Instagram and Twitter for social media supremacy. What this means for a business is that news travels fast. If a customer at a retail store has a bad experience, one tweet or Facebook post can spread across the world in minutes. This can lead to a mass exodus of customers from the retail store, both at physical locations and online. A bad incident doesn’t just create bad press, but also a bad reputation.
On the other hand, a retail store that has stellar customer service is talked about as well. Consumers discuss their experiences with both physical and digital storefronts in-depth through social media. This can lead to bringing in new consumers while helping to keep the current customer base loyal and happy.
Good customer service means loyal customers
Many retail stores can attract customers on a daily basis. This can happen through sales, high-profile marketing, word of mouth, and other means. However, keeping these customers coming back can be a challenge. Good customer service is a great way to reward loyal customers and help them want to return to the retail store. If the customer service is generally bad, this will make sure the hard-won customer base will start looking for another shopping place. With so many options in the physical world and online, it isn’t hard for a consumer to find a new place to call home. Good customer service will help keep these customers coming back time after time.
Good customer service means good sales
If good customer service spreads like wildfire on the internet and helps retain loyal customers, it is logical to assume it also helps boosts sales. Every retail store is in business to make money and sales are the key to the revenue. If a consumer hears about good customer service over the internet and from current loyal customers, they will check out the store and buy it.
Customers that are happy with their customer service will also buy more products from the store since a satisfied customer wants to spend money. The key here is to give the consumer a welcome and inviting place to spend the money he or she wants to spend. Bad customer service drives sales down and good customer service drives sales up.
Loyal customers created from good customer service are less price sensitive
This means that there is a higher profit margin for the retail store. Loyal customers aren’t just looking for a deal, they want to shop at a place that is comfortable. Loyal customers won’t mind if some items are a bit higher than other retail spaces.
They will look at these prices as a badge of honor, since places that don’t have good customer service aren’t good at business. Profit margins will be higher and customers will happily pay premium prices.