How Excellent Customer Service Can Benefit Your Franchise

October 21, 2014 In: Customer Service, Ingredients for Success Comments (None)

In the franchise industry, customer service is one of the key driving factors to the success and growth of your business. Franchises, such as Dream Dinners, provide a service to its customers who are looking to prepare meals quickly so they can spend more time with their families. If a customer even just has one negative experience at your franchise location, then this could jeopardize if they will return to your establishment in the future. In fact, according to Salesforce, 89 percent of customers reported that they will stop doing business with a company if they experienced a negative customer service experience there. Due to this service factor, it’s vital for franchise employees to always give top of the line customer service.

Customer Retention
In the business world, it is much harder and more costly to attract new customers than retain old ones. In fact, it can cost up to seven times more money to bring in a new customer than it does to keep existing ones. Customer retention is also key, because current customers are up to eight times more likely to make a purchase than a new customer. When a business provides outstanding customer service it greatly increases its chances of producing a positive experience for the customer, leading them to become a continual consumer, which is proven to bring the most money to an establishment.

Reputation Management
Not only does excellent customer service bring customers in on a continual basis, but it can also help to build a positive reputation for your franchise. If you think that your business’s reputation isn’t an important factor when it comes to customer retention, then you are mistaken.

On average, customers who received first-rate customer service at a business will tell about nine people about it. However, if an individual experiences an undesirable customer service experience at a business, then they will tell about 16 people. Yes, that’s nearly double the number of individuals that people who have a positive experience tell. Not only do the customers who have a negative experience now have a bad perception of your business, but now these 16 other individuals do as well, which may lead them to terminate business with you, as well.

By providing superior service, your franchise won’t need to waste time and resources employing reputation management tactics to try and boost your franchise’s image. What business doesn’t want people talking about them positively?

Cost Justification
For businesses that have higher priced products or services than their competitors, then providing superior customer service is even more important.  When you have a franchise that practices higher pricing yet provides greater service, customers are able to justify paying a slightly higher price for a product because of the service that they are receiving. In fact, 80 percent of U.S. consumers report that they are willing to pay a higher price if it is accompanied by a superior customer service experience, according to a survey conducted by HelpScout.

To create this best-in-service experience for your franchise and its customers, it’s imperative to hire employees who can provide superior service to your consumers. Looking for candidates who have good people skills and communication abilities are just two of the many qualities to look for in employees who are the face of your franchise.

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