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How small businesses can use customer service to improve marketing results
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How small businesses can use customer service to improve marketing results

Winning new business can be difficult for small businesses, especially those with limited marketing budgets or those entering saturated markets.

Which means they need all the help they can get when it comes to building a reliable pipeline for the future and enough cash flow to deal with the short and medium term.

While you might not think it, customer service is becoming a valuable tool in the marketing and sales bag as more customers begin to view the service they get as a key differentiator among competitors, and are using it more to decide which business to use.

Just over 60% of customers say they would switch to a new business after a single bad experience with their current provider.

In this blog we look at the role customer service can play in becoming a cost-effective marketing tactic for small businesses.

  1. Standing out in crowded markets

More than three quarters of customers will use reviews of customer service when deciding whether or not to buy from or do business with a company.

Which means customer service is now an important differentiator for businesses in crowded markets – especially when their products and services are fairly similar to what the competition sells.

There are many things you can’t control in business, but the experience you give customers is something that’s entirely within your domain. Becoming known for providing better and more reliable service than your competitors can help you stand out and give you a step up on much of the competition.

  1. Use customer service to retain more existing customers

Nearly nine in 10 customers say they are more likely to return to a company and make repeat purchases after receiving good service.

It’s a well accepted fact that it’s much cheaper to retain a customer than it is to win new customers, and that these customers have a higher lifetime value due to the number of repeat purchases they’ll make compared with the single purchase of a customer who leaves after one visit.

Given how much emphasis customers put on service when deciding whether to work with a business more than once it can pay off in a big way for small businesses looking to build a loyal customer base.

  1. Win more social proof to help with marketing

One of the biggest challenges facing small businesses is the lack of social proof they have that they can provide the service or product they say they can.

Social proof is just reviews and testimonials from your existing or previous customers who say they’re satisfied with the service you gave.

This can be even more important for smaller businesses, which may not have the brand recognition of larger businesses and are more reliant on positive reviews and testimonials to build trust with their future customers.

  1.  Winning new business through referrals

Budgets can be tight in small businesses and this could restrain how much can be spent on marketing and sales to win new customers.

One way to generate new business without these associated costs is through referrals from existing customers.

Having existing customers effectively do your marketing for you by recommending you to their network can be much more effective than advertising or other organic marketing channels like content.

And one of the best ways to build brand advocates is to provide a better service than everyone else that makes you stand out, and makes customers more positive about buying from you or doing business with you. 

Plus, new customers won through referrals are more likely to stay longer because they have the reassurance that you can deliver (because you already are delivering for someone in their network).

Using customer service as a small business marketing tool

Small businesses can benefit greatly in their marketing and sales efforts by using great customer service.

By using customer service as a marketing tool and using every customer interaction as an opportunity to build your brand or encourage referrals you can achieve all the benefits of a successful marketing and sales campaign, without as high a cost.

This can help small businesses create a reliable and sustainable pipeline of new business from an existing pool of happy customers.

Get in touch with us to find out how our telephone answering for small business and managed live chat can help improve your customer service and help grow your business.

Start a free trial or give us a call on 0333 323 1007

08th March, 2024

Posted by Face For Business

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