12 Data-Backed Reasons Customer Service Is Key to Business Growth - Written by Swetha Amaresan @swethamaresan
What is Customer Services? Customer services is important to your business because it retains customers and extracts more value from them. By providing top-notch customer service, businesses recoup customer acquisition cost and cultivate a loyal following that refers customers, serves as a case studies, and provides testimonials and reviews. 1. Customer retention is cheaper than customer acquisition. 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 — which then results in your business having to spend less on operating costs. According to our research team (Hubspot Academy), the customer acquisition cost (CAC) — how much it costs to acquire a new customer — is more for a company that doesn't invest a small percentage of its budget in customer service. Ultimately, investing in customer serv...