End your stress now

Five Ways Customer Service Affects Your Business (and How You Can Improve).

To ensure the success of your business, the best thing you can do is to invest in customer service. Customer service plays an important role in purchase decisions, and we must consider our interactions with customers carefully. 

Great customer service has the power to build a loyal customer base, increase conversions, and generate sales and revenue.

To understand exactly how you can access these benefits, you must first look at where customer service impacts your business.

How Customer Service Impacts Your Business

1. Reputation

A good reputation starts with customer service. 

If you can deliver an exceptional experience to your customers, you will increase both brand awareness and loyalty. It is proven that brand reputation strongly impacts purchasing decisions, and 55% of customers select brands based on their reputation of great customer service. 

Do not underplay the importance of testimonials and reviews! A whopping 90% of customers are influenced by positive reviews. Stories are a fantastic way to connect with customers, and happy customers make the best storytellers. 

Check out some of the reviews and testimonials we’ve received at Polaris. This is just one example of what great customer service can do! 




2. Customer Retention

Thanks to the ever increasing online marketplace, customers are now overloaded with choice. Building a loyal customer base through great customer service is more important than ever. Not only will you stand out from the competition, but increase your sales and profitability.

One-time customers are far more likely to become repeat business after they’ve received good customer service. Retaining current customers builds stable revenue and sets a solid foundation for your business. Increasing customer retention by just 5% can lead to a profit increase of 25%.

This is due to the fact that happy customers are likely to spend more per purchase. Top performing companies pull nearly 20% of their revenue from repeat customers. 

3. Conversions

Great customer service is the secret to converting leads to sales. Companies that focus on providing personalized service have seen an 8% increase in conversions. 

Customers are far more likely to make a purchase after receiving great customer service. As much as 90% of customers use customer service as the deciding factor of whether to do business with a company. 

By making the effort to build real connections with your customers, and addressing their needs, you can drive conversion rates and increase revenue. 

4. Marketing Expenses

The best part of a loyal customer base is that they work as free marketing! Happy customers are the sales reps you don’t have to employ. 

Studies find that 56% of people would recommend a company to their family and friends after exceptional customer service. 

Great customer service encourages word-of-mouth marketing. Save yourself thousands in advertising costs, and invest in great customer service instead.

No matter how authentic your marketing campaign may be, nothing can beat personalized stories from happy customers. Customers will gladly promote your business when they feel they have received fantastic customer service.

5. Increased Revenue & Profits

Now, what do all of the above areas have in common? Put them together and they’ll have a dramatic effect on your revenue and profits.

By building a good reputation, retaining customers, reducing marketing expenses and driving conversions, your company is sure to experience positive revenue growth. 

Companies that prioritize their customer service can expect their revenue to grow 4-8% above their market. Positive customer experiences = positive growth.

How You Can Improve Your Customer Service 

To review, five ways customer service affects your business include:

  • Reputation
  • Customer Retention
  • Conversions
  • Marketing Expenses
  • Revenue & Profits

Think of it like the 80/20 rule, where 80% of the results come from 20% of the effort. In this case, by focusing on customer service you can positively impact five other aspects of your business.

Build a People-focused culture

Great customer service starts with company culture. Find ways to incorporate customer focused values across your entire organization. Empower your team to understand the impact their service has on the business.


Structure your company values around making human connections. For example, at Polaris we make sure our customers can always speak with a real person. Rather than dealing with confusing telephone trees and robotic messages, our customers have a direct line to our team  at any time.

This helps our customers feel connected to real people. Let’s face it, no one likes to deal with a faceless corporation. 

Be proactive vs. reactive

Taking a proactive approach to customer service means your business offers solutions to potential problems before they impact customers. 

To be proactive, first put yourself in the customer’s shoes. Imagine any potential hiccups or struggles they may have, and offer solutions before they happen.

Send out surveys or email newsletters, and monitor your social media to understand what customers are saying about your brand.

Focus on authenticity

Forced smiles and scripted lines are not the way to a customer’s heart. Customers build trust with brands when they receive happy, authentic customer service.

Authentic customer service starts with happy employees.

For 73% of customers, happy employees and customer service members are what make a brand memorable. 

When customers see a brand that respects and values their employees, they are more likely to purchase from that brand. Focus on building teams that are rewarded for showing their personality. 

The more personal your customer service feels, the better!  

It may seem like a small change, but it can mean the world to stressed customers. Sometimes, the difference needed to make a sale could be a joke told by your customer service agent. 

In the end, it’s the small, personal touches of your brand that will leave a lasting impression. Remember, customer service is the key to unlocking multiple business benefits.

There’s always room to improve, so why not start today? 

Looking for more ways to maximize profits for your small business?

Connect with us to learn how you can save up to 40% on your payment processing fees.
Book your free call