Customer service deliver bigger sales

Business, Normal

The National, Tuesday February 11th, 2014

 PROVIDING excellent customer service is an investment in future sales for companies, the Business Advantage said.

However, a large number of chief executive officers do not pay attention to customer service — statistics showed only about 40%.

RDL Management consultants managing director Robert de Loryn said for companies to be highly successful and profitable in these times of significant change, they must have a point of difference to their competitors. 

There are two key areas that companies look to create this point of difference:

  • Be a customer-focused organisation; and
  • Develop highly skilled local management

Loryn said it was generally much more cost effective to sell to existing customers than to keep having to find new ones. 

There’s a 5% to 10% probability of selling to a new customer while the probability of selling to an existing customer was 60% to 70%. 

Plus, it costs six times more to get a new customer than it does to keep an existing one.

Great customer service was the best way to retain customers. 

Business leaders should therefore take the long-term view that great customer service will lead to increased profits.

Through staying close to, and talking to your customers, you will understand their needs better and thus generate increased opportunity.

SP Brewery had a significant shift towards a customer focus in their commercial operation for the past two years.

‘The biggest issue that has to be overcome is the mindset that only an expatriate has the ability to perform a role,” Loryn said.