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Meshing Customer Service with Marketing to Increase Revenue

Guest post by: Joseph Lizio

Article Overview: Customer service has a bad reputation as its costs seem to be greater than its benefits. But, it does not have to be this way. There are easy ways to combine your marketing with your customer service to increase your business’s revenues and profit.

Meshing Customer Service with Marketing to Increase Revenue

Most business owners think that providing customer service is an unnecessary expense. In fact, many believe that providing customer service does nothing but increase costs to the business as it brings in no revenue, no sales or no new business. If you have the mindset that customer service is just too costly to offer, then by all means, alienate more of your customers. Or, find a way to make your customer service efforts profitable.

Here is a great example: The other day I called my satellite TV/internet provider to inquire about a charge on my bill. When the customer service rep answered the phone, she begin by thanking me for calling the company, then, before asking those very impersonal questions like account number or last four of my social security number, she asked me if I was calling about their "bundled service". While I was already enrolled in the bundle service, I politely told her the purpose of my call. But, had I not already known about this service, I might have been prompted to ask more questions and potentially sign up for the bundle; providing this company with additional revenue - not to mention make me happier with a service I might not have known about.

Again, after answering my question and before ending the call with the standard thank you for calling - she asked me if I was interested in saving $5 per month on my bill. All I had to do was plug my receiver into my phone outlet. Apparently this both saves the company the expenses of downloading upgrades and new programming to my receiver as well as the ability to cross-sell or up-sell additional products and services that can be delivered via my phone line like buying expensive pay-per-view shows - all of which can be a bonus to this business's bottom line.

I was blown away and immediately thought, ‘why don't all businesses do this - use their customer service to not only help and retain current customers but use this service for cross-selling or up-selling new products and services'. Why not? When you have customers on the phone they are usually extremely engaged in what you are saying as well as dedicated to the conversation - unlike other marketing efforts were potential customer can be engaged in several activities while your message is being viewed - like surfing the web while watching TV.

Another master at this strategy is your banking institution. How many times have you called them or stood in line and had them ask if you want to apply for something you don't have like a credit card or savings account? Again, why not? They have you engaged, can easily assist you in buying more products which is very profitable to them and can evaluate you and your account on the spot for cross-selling opportunities as they already have this information pulled up in their systems!

So, my challenge to all business owners who think that customer service is an unnecessary expense that does not generate revenue - try to find a way to mesh both your marketing/sales and customer service together. Here are the potential benefits:

1) Potential cross-selling or up-selling opportunities that can quickly and easily bring in more revenue to your company with very little added costs per customer.

2) More efficient marketing by allowing you to introduce new or better products to current customers - customers that already see the benefits of your company's products and services - as well as reducing your marketing expenses in trying to get media messages in front of these very same people.

3) The customer service side: The ability to retain customers. We all know that retaining customers is less expensive than acquiring new ones. Per Roger Best, PhD a former graduate professor of mine who estimates that it is 10 times more costly to acquire a new customer than it is to retain and sell to an existing customer.

Further keep in mind that in down times and slow economies, a solid management policy is to attempt to get more revenue from existing customers than in trying to get revenue from new customers who are not in a position to try new products and services. Think about the 80/20 rule here - where, in this instance, your business could mesh customer service and cross-selling opportunities (marketing) to get more out of that 20% who make up the bulk of your revenue. You might even be able to increase this ratio to 90/20 - where your business gets 90% of its revenue from 20% of its customers.

Customer service does not have to hinder your business with unnecessary expenses. Use this opportunity to not only help and satisfy your customers' issues and problems but as a means to earn more revenue from consumers who you have already initiated into your company's folds. Not only can you satisfy current customers but potentially provide them with items that can improve their lives. For this, they will truly thank you - regardless of why they called or visited your business in the first place.

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Article Tags: business profits, crossselling, customer service, lower expenses, marketing



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