How does good service bring returns to your business?

Discover the benefits of good customer service and what metrics to use to analyze and improve your business.

Imagine it’s Friday night, you go to a pizzeria, willing to spend your money to have and provide a moment of relaxation, satisfaction and relaxation for your family.

Once there, the establishment is full. The waiters take a long time to serve you, the pizza takes time to be ready, the dissatisfied people around them start to argue with the employees and the noise mixes with the TV, which is turned up at the highest volume.

You will hardly want to return to this establishment, right?

In contrast to the first experience mentioned, on the following weekend, you decide, by recommendation of a friend, to go to the restaurant across the street, even though you pay a little more for it.

The restaurant offers a free entrance for new customers, the sound and atmosphere are pleasant and orders arrive within minutes, not to mention the incredible taste of each dish.

Despite spending more money, it’s likely that you’ll save the entire week so you can get back to that experience, isn’t it?

In addition to this type of analysis, which is very practical, we can delve into this subject to look for tools, methods and metrics to analyze your business in terms of service and user experience, also thinking about strategies to improve them.

That’s exactly what we’ll see next, follow:

Advantages of having a good service

Using a little empathy and putting ourselves in a customer’s shoes, it’s easy to see how good service has the power to increase our desire to return to an establishment or website, refer a company and make new purchases.

Perhaps at the beginning of the previous paragraph is the biggest tip of this article: empathy.

Putting yourself in the customer’s shoes and imagining how to awaken in them the feeling of being important to your company is a very assertive action when the intention is to increase your business’ retention levels.

Many benefits are noted when implementing measures to optimize your company’s customer experience and your service user. Among them, we can mention:

  • Increased retention level: As a direct consequence of good service, there is an increase in retention level, which will be well evaluated by a good Cohort Analysis, which will be explained later.
  • Product improvement: making room for listening to the customer’s opinion, or voice, it is possible to improve your product or service according to points raised by those who use it.
  • Free advertising: there is no better advertisement than the indication and testimonial of those who have already used your service, so it is important to retain fans who go viral with your brand. NPS is a good yardstick to measure your success at this.
  • Increased average ticket: when the customer starts the relationship with your company, usually with a cheaper or even free product, and has a good experience, he feels safer to buy a more expensive product, knowing that his money will be well employed.

5 Metrics to Evaluate Your Attendance

In order to verify the quality of your company’s service, and the customer’s experience when interacting with it, several tools and metrics emerged and were implemented in the largest companies in the world.

Next, we’ll introduce each of these metrics and tools so you can choose which ones to use to measure how assertive your actions toward that goal are.

1. VOC – Voice of Customer

The VOC, Voice of Customer, or even the voice of the customer, is a methodology that evolved along with Six Sigma and became popular, enabling the identification of points to be improved in the vision of who should be the main one in your company, the customer!

The VOC is a tool that helps in making decisions and directing your company’s resources, prioritizing the most valuable processes that will really make a difference in the product, to the detriment of guesses and assumptions of managers who, despite being important, are not in contact direct with the final product.

The VOC is implemented with 4 main steps, ranging from identifying what your customer wants, to adjusting the requirements to meet your needs. To learn more, visit the article “What is VOC after all? “.

2. LTV – Lifetime Value

The LTV stands for Lifetime Value is a metric that seeks to measure the value brought by a customer in his “lifetime” in the company, that is, during their relationship with the organization.

This value is given by the average ticket, multiplied by the number of purchases per year and the duration of the contract, in years.

In addition, the LTV with the CAC, another very important metric that measures the expense of acquiring a new customer, provide information on the analysis of your service.

Dividing the LTV by the CAC, it is possible to have an idea of ​​how many times the amount invested in the acquisition of a new customer is converted into monetary gain for the company.

3. NPS – Net Promoter Score

Another important tool for analyzing customer service is NPS.

The Net Promoter Score is based on a type of satisfaction survey, in which the customer is asked, usually after sales, what is the chance, from 1 to 10, that he will nominate your company. It can open a field for deeper feedback as well.

According to the note given, such customer is considered a detractor, neutral or brand promoter.

The NPS is the subtraction of prosecutors by detractors, divided by the total number of respondents.

Comparing your company’s NPS, with that of others in the same segment, or with the NPS of other products of your own company, you get a powerful metric of how well you are doing in your mission to serve your customer well.

4. Cohort Analysis

The Cohort Analysis is, without a doubt, the most conclusive analysis when we aim to improve a company’s customer retention.

The analysis method consists of separating customers into groups, according to their behavior over time.

Thus, the behavior of your customers in relation to the actions taken by your company is very evident.

The larger the customer database and the time spent with them, the more accurate the analysis becomes.

The best Cohort Analysis is based on the Churn rate, that is, the turnover rate. With it, it is clear, starting from a group, the size of the evasion of people in each period of time.

If there is a big step in the third period of time, for example, you should see what action was taken there and avoid it, in order to provide good customer service.

5. UI and UX Design

User Interface Design and User Experience Design are services aimed at optimizing the user interface and experience. That is, the first focuses on all interfaces used by consumers and the second, on the consumer itself.

A great strategy to adopt for the sales pitch and negotiations is SCOT Communication.

The technician says that, in order to provide a good service, a discourse with security, clarity, objectivity and transparency is necessary:

  • ecurity: it must convey confidence, authority and dominion in his speech;
  • larity: be succinct and clear, try to identify how your customer communicates and use didactic communication. Remember: using difficult words will confuse you, not impress you;
  • The bjetividade: be direct, do not make her feel customer you are going around or being repetitive, it takes its credibility; and
  • ransparency: Keep in mind that your product or service must deliver on every promise you make, otherwise your customer will become frustrated and possibly become a detractor of your company.

Use metrics for your decision making

In this article, we cover:

  • The benefits of having a good service in your company;
  • What results can this bring;
  • What tools to use to analyze, assess, correct and improve service and user experience in your organization.

More and more, this is a point taken into account in the market. Maxims such as “The customer can have a car any color they want, as long as it’s black” by Henry Ford have less and less force and reason.

Today’s customers have a voice, they must be the center of the companies’ focus and the ones that best know how to analyze their needs are those that have been successful and have grown in the market as big disruptive ideas.