Lots of companies talk about their customer service being a differentiating factor among competitors. Few live up to the hype, despite the fact that it is less expensive to keep a current customer than it is to acquire a new one (ClearlyRated). Not only do many businesses not live up to the hype, but customers continue to raise the bar on the quality of service they believe they should receive. According to Salesforce, 88% of service pros say customer expectations are higher than they used to be. Yet in 2024, Forrester’s reported that 39% of brands and 10 industry averages declined in customer experience quality. And only 3% of companies could be defined as customer-obsessed (putting customer needs, desires, and satisfaction at the forefront of all business decisions) even though customer-obsessed organizations report 41% faster revenue growth, 49% faster profit growth, and 51% better customer retention than non-customer-obsessed organizations. Businesses can no longer rely on “great” products or “affordable” prices alone to attract consumers and gain loyalty. Exceptional customer service is the key to survival and success in a competitive market. (Nextiva) We live in the age of the consumer. Consumers know more, expect more, and are not afraid to walk away from a business that doesn’t meet their needs. In fact, most consumers are willing to pay a premium for products and services, provided they receive exceptional customer service throughout the entire buying experience. The new era of customer service: how customer retention impacts the bottom line In the past, the promotional products industry relied on the abundance and quality of products offered. The digitization of the industry in the past couple of decades has made the market more competitive for distributors. Modern consumers have access to technology that enables them to scout various options (you as well as your competitors) before making an informed decision on their business needs. Unfortunately, unique products at great prices are no longer the primary differentiator in today’s competitive environment. Customer service, revealed in online reviews (for better or worse), play a key role in decision making. In fact, 93% of customers read online reviews before making a purchase and almost 53% of consumers trust online reviews as much as personal recommendations. (Demandsage) What does this mean for the promotional products industry? Increasing customer retention rates (lower customer churn) by 5% increases profits by 25-95% “ ” (Harvard Business School) 77% of consumers will switch to a competitor after multiple bad experiences 50% of consumers will switch after only one bad experience (Zendesk) Companies within the promotional products industry face the unique challenge of serving both businesses and consumers. This tricky juggling act requires more intentional coordination than what’s necessary for companies that serve one or the other. B2B service consists of longer-term, relationship-driven interactions requiring in-depth knowledge of a client’s complex needs and involving multiple stakeholders. B2C service is individual and focuses more on quick turnaround and efficient resolution. (lform.com) As if those two contrasting audiences weren’t complicated enough, the sociology of customer service is also shifting. According to Foresight, by 2025, the role of customer success will grow to include partnership and co-creation as well as onboarding and support. This is one area where promotional products distributors are ahead of the curve since cocreation is central to the customization-centric industry. However, that doesn’t necessarily account for the partnership element. The challenge of providing both B2B and B2C customer service
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