After-Sales Service Excellence: Why Your Business Needs It

A merchant’s refusal to replace a faulty or broken product, an unclear or inadequate instruction manual, a retailer’s claims that the customer contravened the conditions of a warranty—these and similar examples of poor after-sales service abound. And they are all guaranteed to drive customers away from a brand.

With ecommerce booming, solid after-sales service has become vital, since shoppers’ only experience of a product is what they are presented with online, and the post-purchase reality may well fall short of their expectations.

In such scenarios, after-sales service excellence can enhance customer satisfaction, and in this article, you can find out why it should be a primary goal for your business.

What Customers Expect–A Guideline

For after-sales service to meet your customers’ expectations it must include the following elements:

·       Support and assistance after the purchase of a product or service

·       A helpful complaints channel 

·       Provision of technical and maintenance services

·       A prompt and effective response to product issues or defects.

The Cost of Poor After-Sales Service

While it may seem obvious that poor after-sales service would have an impact on customer loyalty, several studies, including the two following examples, have attempted to quantify the extent of the potential damage.

1. Customer service management group CTMA World found that there is typically a 25% drop in customer loyalty among shoppers who experience a problem. That translates into a potential loss of revenue from one in four customers who have suffered a disappointing shopping experience with your brand.

2. A Harvard Business Review report estimates that in several industries, the cost of acquiring new customers is up to 25 times more than retaining existing ones. In other words, losing a client due to poor service will wallop your bottom line.

The Rewards of Excellent Post-Sales Service

Now that we’ve examined the downside of shoddy after-sales service provision, let’s look at some of the benefits of this vital final link in the product supply chain.

1. Increased Profits

A Bain & Company study shows that a 5% increase in customer retention rates can yield profitability hikes of up to 25%, resulting in total profitability of up to 95%.

The research reveals the following reasons for such an impressive statistic:

·       Return customers tend to buy more from your brand over time, and as they do, your costs to serve them decline.

·       Return customers refer others to your company.

·       Return customers will often pay a premium to stay with you rather than switch to an unknown competitor.

2. Enhanced Customer Satisfaction

A positive after-sales experience can enhance customer satisfaction. When customers know they can rely on your business for support, they are more likely to feel valued and appreciated. Such assurance builds trust and confidence in your brand.

3. Enhanced Brand Loyalty

Satisfied customers typically become loyal customers—the backbone of any successful business. They make repeat purchases and become brand ambassadors, promoting your enterprise through word-of-mouth. When you provide prompt, effective support, your brand develops a reputation for reliability and dependability.

4. Reduced Returns and Complaints

Returns and complaints can be costly for your business. Effective after-sales service can help mitigate such issues by addressing problems before they escalate. Providing clear instructions for product use, offering troubleshooting tips, and having a responsive customer service team helps to prevent misunderstandings and minor issues from becoming serious complaints or returns. A proactive approach offers the double benefit of cost savings and an improved customer experience.

5. Competitive Advantage

In a crowded market, standing out from the competition pays handsome dividends. Excellent after-sales service can provide a significant advantage over competitors focused primarily on the pre-sale experience. After-sales service excellence is a differentiator, attracting customers who value comprehensive support.

6. Positive Reviews and Recommendations

Online reviews and recommendations have a profound impact on business success. When making purchasing decisions, potential customers often rely on reviews and recommendations from previous buyers.

Superior after-sales service can lead to positive reviews and recommendations. Satisfied customers are more likely to share their positive experiences, reinforcing your brand’s reputation and drawing in new customers.

Conversely, substandard after-sales service can result in negative reviews, damaging your image and deterring potential buyers.

7. Facilitating Upselling and Cross-Selling

After-sales interactions provide valuable opportunities for upselling and cross-selling. When customers reach out for support, you can use the opportunity to suggest complementary products or upgrades that enhance the original purchase. Stellar after-sales service thus becomes a tool to boost revenue while ensuring customer satisfaction.

Alternative Types of Customer Care

The most obvious after-sales support deals with product defects or breakages.

However, by putting yourself in your customer’s shoes, you can arrive at more creative ways to assist and support them. These could include the following initiatives.

1. Providing a detailed description of the product and how to assemble (if applicable) and take care of it.

2. Offering troubleshooting tips.

3. A remote product configuration service

4. Customer education via live or pre-recorded explainer sessions, tutorials, or presentations.

5. Assuring customers that defective items are returnable and informing of the returns process (hint: provide detail, but keep the process simple).

6. Ensuring the availability of on-demand customer support via telephone and online channels.

After-Sales Service Excellence: Is it Really Worth the Effort?

Strong, long-lasting relationships with customers is essential for sustained business success. When customers know they can count on your brand for ongoing support, they are more likely to feel connected to it.

In other words, good post-purchase service is not just an optional add-on for your business; it is a crucial component of a winning business strategy.

So why not make use of Shipa Delivery’s product returns service to add value—and speed—to your after-sales strategy?

Our teams are ready to collect unwanted or defective items from your customers and return them to your warehouse or store—plus we’ll deliver replacements or repaired items at a pace that will impress your customers.

Have a chat with one of our professionals to see how Shipa can partner with you and help you achieve your after-sales service goals.