Amidst the evolving business landscape, the question of whether to invest in customer service training persists. With over 25 years in the training industry and an ardent supporter of exceptional customer service, the argument for such investments becomes resounding. A number of reports state that losses due to poor service in the US are well into the billions.
Beyond mere financial implications, great customer service is pivotal for retailers as it directly contributes to sales growth. Unmet customer expectations can deter purchases, emphasising the significance of investing in quality training. Here are compelling reasons why the benefits far outweigh the costs:
1. Customer Loyalty and Lifetime Value: Team members providing excellent service foster customer loyalty, encouraging repeat purchases. Regular customers, crucial to retailers, extend the lifetime value of a customer.
2. Upselling Opportunities: Well trained team members are adept at recommending additional products, influencing essential KPIs such as average sale, sales per hour, and items per customer. Great service correlates with increased sales, showcasing the direct impact of trained team members on business metrics.
3. Reduced Returns: Quality customer service diminishes the likelihood of returned items by ensuring better customer education. Minimising returns, a costly aspect for some businesses, becomes achievable with motivated, customer-focused team members.
4. Conflict Resolution and Customer Satisfaction: Properly trained team members excel in offering excellent service and professionally handling issues. This proactive approach significantly reduces lost sales resulting from poor service and unresolved customer complaints.
5. Reduced Team members Turnover: Investment in team members training reflects a commitment to their development, contributing to higher team members retention rates. This is crucial in curbing the costs associated with high turnover, such as lost productivity and recruitment expenses.
In essence, customer service training is an investment, not merely an expense. As customer service guru and Beechworth Bakery founder, Tom O’Toole aptly notes, “What if we don’t train them and they stay?” The long-term benefits of well-trained team members far surpass the initial costs, creating a foundation for sustained success in today’s competitive business environment.
Roger Simpson – CEO, The Retail Solution and Author of “The Ultimate Retail Sales Experience” With over 35 years’ industry experience, Roger Simpson is recognized as Australia’s #1 Authority on customer ROI in the retail industry and as a global expert on staff coaching, customer service, and selling skills.
