How Exceptional Customer Service Drives Sales and Retention For SMEs
-By Priyasy Bokadia November 1, 2023 6min read
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Customer service involves assisting your customers, both before and after their purchase and use of your products or services. It is important to ensure that customers have a smooth and enjoyable experience with your brand. Delivering exceptional customer service is essential for customer retention and the expansion of your business. In today's context, customer service extends well beyond the traditional telephone support approach. It is accessible through various channels, and many companies offer self-service support options, enabling customers to find solutions independently, day or night. Customer support is not just about giving answers; it constitutes a significant commitment your brand makes to its customers.

Why is it important for your business?

Exceptional customer service plays a crucial role as it serves as the direct link between your business and its customers. It not only fosters customer retention but also maximises the value derived from them. Through the delivery of outstanding customer service, enterprises can recover customer acquisition expenses, paving the way for the cultivation of a devoted customer base. This loyal following not only refers to new customers but also serves as valuable case studies, offering testimonials and reviews that contribute to the business's overall success.

48% of customers have switched brands for better customer service, and 94% say good customer service makes them more likely to make another purchase.

The State of Service Report, Fifth Edition

1. Boost Your Sales:

Customer support isn't just about holding onto the customers you already have—it's an effective way to boost your sales. Did you know one of the McKinsey research states that improving the customer experience increases sales revenues by 2 - 7 % and profitability by 1 - 2 %? So, make sure your online support game is strong, or ensure your employees have easy access to the answers your customers need. Save that sale by being the go-to source for the right information at the right time.

2. Keep 'Em Coming Back:

Customer retention is cheaper than customer acquisition. Acquiring new customers costs 6–7 times more than retaining your existing customers. For SMEs amongst juggling a thousand things, customer satisfaction is gold. You just can't afford to lose customers, and 68% of customers leave because they're not happy with the customer service they've received. Quick and helpful customer service is critical for customer retention. Plus, happy customers can be your best marketing tool, bringing in new business through word of mouth.

3. Upsell and Cross-Sell Opportunities:

Guess what? Your existing customers are a goldmine. When you connect all your support channels and apps with your customer relationship management (CRM) system, magic happens. Support agents can see everything—order histories, open opportunities, and shipping status. Everyone in your company can be in the know about customers. By sharing customer info, product insights, and support metrics, you not only boost productivity but also uncover opportunities to cross-sell and upsell. It's like finding money in your pocket! Did you know one of the Mckinsey reports states that, Increased customer satisfaction can increase cross-sell rates by 15 - 25 % and boost companies’ share of wallets by 5 - 10 %?

4. Improve Your Offerings:

Your support team, whether it's 3 or 30 people strong, is your lifeline to the outside world. Unlike other teams that only interact with customers occasionally, your agents are in the trenches daily. With a good customer service application and CRM system, you can gather insights from across your business and beyond. Want to know how customers are interacting with your product or if they're facing issues? Your support team knows. Categorize those cases, and you'll discover what tweaks and features your customers are craving. These insights are golden for driving those all-important product decisions.

5. Smart Business Decisions:

Your customer service tools are like a superhero utility belt for your business. They're not just for supporting customers; they're for improving every aspect of your operation. Dive into your help desk data to see how your agents are performing, optimize your support team, check out customer satisfaction scores, and track the most requested features. A good help desk solution gives you the insights you need to make faster, smarter decisions. It's not just about support; it's about steering your entire business toward success.


In essence, investing in exceptional customer service is not just about meeting customer expectations; it is a strategic move that influences the core of business operations, from sales and retention to product development and overall decision-making.