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  • Writer's pictureSsemujju Lewis E

Why Customer Service Is Important For E-Commerce

Good customer service CRM supports a business’s ability to grow and take care of customer relationships, which offers a combined move towards getting together customer information while shaking up processes.

A CRM system allows everyone to manage external interactions and relationships that drive the business's success. The CRM system will enable you to store customer contact information, identify sales opportunities, record service issues, manage marketing campaigns, and make contact information about customers available in one position, making monitoring transactions, productivity, and business growth easy. CRM is not discriminative in driving growth for all business sizes.

Whether an organization provides customer service by phone, email, live chat, or social media, you ought to ensure that your customers enjoy the perfect experience that will make them leave good reviews about you. Many companies have provided self-service support so customers can find their answers anytime, day or night.

E-commerce CRM (e-CRM) is a CRM system explicitly designed to help eCommerce businesses manage customer contact information, purchasing behavior, and other analytics data.

E-commerce CRM primarily focuses on sales and digital customer experiences. Like traditional CRM, e-CRM can analyze customer information and sales patterns and record and store data.

Most e-CRM software also can analyze your site’s metrics, for example:

  • Conversion rates;

  • Customer click-through rate;

  • E-mail subscription opt-ins;

  • Which products are customers interested in.

According to a study carried out by Hubspot on the state of customer service, a few realizations were made, and these are:

  1. Customer demand has increased. The level of service that might have been acceptable to a customer ten years ago could now result in complaints. Customers are demanding answers in minutes, not days. They expect automated and self-service options but also want service staff to help with complex issues. And they want every interaction they have with a business – marketing, sales, or support – to be personalized.

  2. The customer service teams serve more value to the company. Customer service has always been demanding, and nowadays, it’s more challenging than ever. Customer service professionals are beginning to see themselves as the guardians of the customer experience. And, at a time when the customer experience is the key to growth, it becomes a differentiating value for many companies.

  3. Some companies mistake customer service for a cost center. What is more worrying is the growing number of companies that view customer service as a cost center. This goes against what consumers expect, as most prioritize an excellent customer service experience, which will make them stay with the company longer or recommend it. In the long run, it does not mean higher costs but more benefits.

Why should you have customer service for your e-commerce business?

1. Provide value to customers

Customers who contact your organization expect to get value for their time and money. Customer service personnel should treat customers well, answer questions, and exceed expectations while at it.

2. It is less costly

It is easier and cheaper to maintain and retain customers rather than set out to land new customers. An increase in customer retention of merely 5% can equate to an increase in profit of 25%. This is because repeat customers are more likely to spend more with your brand — 67% more, to be exact — resulting in your business spending less on operating costs.

3. Customer service represents your brand image, mission, and values

Much as you are acclimatized with your organization's mission and values, that is not the story with the customers. Customer service bridges the ignorance gap, informing the customer about what the organization is all about. Customer service is responsible for how the customer perceives your organization. 73% of customers say they stay loyal to brands because of friendly customer service reps.

A brand for a company is like a reputation for a person. You earn a reputation by trying to do hard things well.
Jeff Bezos (CEO of Amazon)

4. Increases revenue

Good customer service is almost always responsible for the increase in revenue. 84% of organizations working to improve customer service report an increase in revenue. While showing the one-to-one correlation between customer service and revenue is harder, customer experience analytics provide the framework.

5. Endorsements and referrals

One good turn deserves another. Customers who get a good treat are always willing to spread the word to their friends. Research shows that people often make purchasing decisions based on recommendations from family and friends vs. advertising messages. Here are four statistics:

  • About 97% of customers will tell others about good or excellent customer service experiences.

  • Nearly 70% of people would spend more money with a company with excellent customer service.

  • Approximately 24% of satisfied customers will return to a business two or more years after a good customer service experience.

  • Research shows that 59% of people would try a new company to receive better customer service.

6. Helps boost Customer Lifetime Value

Customer lifetime value is one of the core metrics to measure. It demonstrates the total revenue you can get from one client. If it grows, customers will shop more frequently and spend more money on your business.

Improving customer service opens the potential for fine-tuning CLV. If a support team makes clients happy during their interaction, they’re more likely to return for more. Besides, they can share their stories on social media, which builds rapport with your customer base.

7. Happy customer service, happy customers.

Statistics show that 87% of employees who are happy with their jobs are willing to work extremely hard for their customers. Employees translate their work energy into making their customers feel the same way. The disgruntled customer service personnel will have no interest in seeing anything good come from dealing with customers.

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