Why start-ups should invest heavily in having great customer service

Many founders think great customer service is costly. It isn’t.

In fact, it’s free.

Great customer service and using livechat tools on your site leads to higher customer satisfaction, higher customer loyalty and higher customer lifetime value (CLV). The increase in revenue means customer service pays for itself.

I’d define great customer service as service which exceeds the customer’s expectation. Customers are happy when the service exceeds their expectations and disappointed when service does not live up to their expectations.

Henrik Berg, the founder of Swedish shoe brand Morjas, knew this better than anyone in his niche. When he founded Morjas in 2017, he summarized the company’s mission to:

“Deliver WOW”

Since I started working for Morjas 15 months ago, I closed 199 sales, worth $20.000+ by chatting with 874 customers. In the meantime, it costed around $20.000 to employ me during the same time period, including general payroll tax.

However, these $20.000 only include sales closed directly after chatting with me. I also answered 1100+ emails during the same time period. While it is impossible to calculate just how much value I created as a customer service agent, I would my ROI to be around 100%. All it needs for a customer to become a lifelong fan of your brand is one great conversation.

Having great service isn’t costly — having bad service is.

This post was created with Typeshare