3 Key Reasons Great Service Drives Higher LTV

Let’s start with something obvious: when you provide exceptional service, your customers are happier. They might say nice things about your brand to family and friends. They might even post something on social media. But great customer service does much more than that. It drives your customer LTV—and in turn, your long-term revenue

 

How does customer service drive LTV? 

 

Your customers are the biggest asset to your business. Without them, there would be no business. By establishing loyalty, you build long-term customers and value. The best way to establish loyalty is by offering excellent service—service that is fast, personalized, and proactive. In fact, 96% of consumers say the quality of a company’s service determines their brand loyalty. 

 

Here are the three main ways customer service boosts LTV. 

 

  1. Personalized service builds relationships

 

Through personalized interactions, customers feel more connected to your brand. They gravitate toward you because of the genuine care you show them. They become your supporters and sometimes even your cheerleaders.

 

A single instance of poor customer service causes one-third of consumers to switch brands, even if your product or service is better. That’s why every interaction is an opportunity to build loyalty and longevity. Customers stay committed to brands that care about them and their business.

 

Knowing your customers’ preferences, order history, and even their future needs makes them feel valued. They feel like you know them and they know you—a healthy bond forms. Using a customer-centric helpdesk can help you to provide your agents with this crucial customer context and empower them to deliver truly individualized service. When leveraged with AI automation, these personalized experiences can be delivered every time and at a large scale. 

 

Example: Trisha seeks help through live chat to inquire about her order that never arrived. The agent has easy access to Trisha’s account information and the order tracking information. Upon seeing that the shipping carrier never delivered the order, the agent places a new order and to apologize for the inconvenience provides Trisha with a 50% off promo code to be used on her next order. Trisha feels cared for and continues to remain a loyal customer.

 

  1. Great customer support fosters connection 

 

When a customer has an issue, they want to reach someone right away and get an answer. This quick connection—from no matter where they are—makes them feel cared for.

 

With omnichannel support (ideally 24/7), customers have confidence they can reach you in the way they prefer—whether that’s an online chat or social media. By getting easy support when they need it, they feel connected to your brand. They trust that you can and will solve their issues. With this confidence, they’re likely to continue shopping with you—increasing their LTV.

 

Example: When Jeremy is on social media during his lunch hour, he posts about his favorite water bottle breaking that morning and tags the company. An agent responds within minutes saying that you’ll replace the bottle free of charge. Jeremy feels connected and loyal to your brand because of the fast response he received through a method that was easy for him. 

 

  1. Listening to your customers helps you improve your brand

 

Understanding your customers and adapting to meet their needs and desires helps you stand out from the crowd. Whether you receive info through feedback surveys or from tickets, you can get a sense of what your customers want. You can also target pain points and recurring issues.

 

By reviewing data and implementing new processes and offerings, you give your customers more of what they want. With continued high satisfaction, you keep customers happily doing business with you for longer.  

 

Example: Consumers seem to be showing interest in different subscription service options. Because you’re reviewing data often and taking action, you offer a new subscription-tier and notify customers. These customers feel seen and heard, and you maintain their business.

 

By investing in your customers with great service, you improve LTV and boost your revenue. You give your business the best chance to create a stronghold of followers while offering them unbeatable service. 

 

Learn more about Thankful: thankful.ai/request-a-demo

Learn more about Gladly: gladly.com/get-started

 

Sources

Auerdeen Group Inc | American Express | Nextiva | HubSpot Research | Microsoft: 2017 State of Global Customer Service Report | Retently | Super Office: How to Create a Customer-Centric Strategy 

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