If you want to stand out from your competition, it isn’t enough to have a high-quality product.

Many companies have realized the fact that the market isn’t as important as the customers. In addition, the present market is maturing, and acquiring new customers is getting harder.

Therefore, it is more profitable to retain existing customers than to acquire new ones. According to experts, maintaining a loyal customer costs a company much less than acquire a new one.

These costs are mainly related to marketing, selling and adapting to meet new customer needs. Losing customers means losing not only losing their profits from one transaction, but all purchases which he could make in the future.

Let’s have a look at 10 customer service skills that you need to succeed.

10 Customer Service Skills You Need To Consider

  1. Product Knowledge: Understand your product thoroughly to answer any customer queries confidently and accurately.
  2. Attentiveness: Listen actively and respond to customer needs promptly, showing that you value their time and business.
  3. Clear Communication: Convey messages succinctly and clearly, avoiding confusion and ensuring understanding on both ends.
  4. Patience: Handle customer inquiries and complaints calmly and professionally, even when customers are frustrated.
  5. Empathy: Show genuine understanding and concern for the issues customers face, and strive to address their emotional needs.
  6. Honesty: Be transparent with customers, especially when addressing problems or mistakes, to build trust and credibility.
  7. Adaptability: Stay flexible to cater to the diverse needs of different customers and to handle unexpected situations effectively.
  8. Work Ethic: Demonstrate a dedication to providing high-quality service and going the extra mile to satisfy customers.
  9. Self-Control: Maintain composure under pressure, managing stress and customer aggression with grace and professionalism.
  10. Responsibility: Take ownership of customer issues, follow through on promises, and ensure resolutions that leave customers satisfied.

The Importance of Customer Loyalty

Gaining customer loyalty is something very precious.

Satisfied customers that are associated with the company for many years, should be the ultimate goal of any company’s activities. This approach is increasingly characterized by forward-thinking companies.

Even small entrepreneurs see an opportunity for additional earnings the more they care about their customers.

Each employee should be able to create and satisfy customer needs. However, not every employee is fit to work with customers.

The person who is responsible for the company’s relationships with customers, should have the appropriate knowledge, skills and a high work ethic. The following infographic made by mattsfactor.com represents the most basic customer service skills.

This is obviously a small part of knowledge that as an entrepreneur you should know. I hope that the tips on presented infographic are so practical that you will be able to use them immediately.

The Cost of Customer Acquisition vs. Retention:

Acquiring a new customer can be five times more expensive than retaining an existing one. Marketing, advertising, and promotional offers designed to attract new customers require substantial investment.

In contrast, maintaining a current customer base through excellent service skills involves less financial output and can lead to more consistent revenue. Loyal customers often become advocates for the brand, further reducing the need for extensive marketing efforts.

They are more likely to purchase again and tend to be less price-sensitive, reducing the overall cost of sales.

Real-world Applications:

In the hospitality industry, a hotel chain implemented a feedback system that directly influenced their customer service training, leading to a notable increase in return guests.

Retailers like Nordstrom have famously empowered their employees to go above and beyond in customer service, creating exceptional in-store experiences that lead to high customer loyalty.

Tech companies often use customer service as a competitive differentiator, with Apple providing in-store Genius Bars for immediate, knowledgeable assistance, enhancing customer retention and satisfaction.

These real-world applications underline how the application of key customer service skills can lead to lower customer acquisition costs and increased customer loyalty.