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How to Increase Sales Revenue with Customer Service

Photo by John Schnobrich on Unsplash

By Mikkel Andreassen

Customer service is an important part of online retail and if done correctly can help you increase sales revenue. It is important to know how to handle customer complaints, returns, and other negative issues that may happen during the purchase process. 

For example, if someone orders a product but it doesn’t arrive, you need to find out where the problem lies: Did the customer not pay? Did they order the wrong item? Did they not receive their order confirmation email?

In addition to handling these problems, you also need to be there for people who have a positive experience with your company. The customer may want to recommend you (via their social media accounts) or give you a positive review. You should be ready for these situations, as well.

Here are the best 5 ways to increase sales revenue with your customer service:

  1. Create a Loyal Base of Repeat Customers

By providing excellent customer service, you can create a loyal base of repeat customers. These loyal customers will not only bring in more revenue, but they will also provide positive feedback about your business to others.

In addition to building up your customer base, excellent customer service will help you save money in the long run by reducing the amount of money that you spend on marketing and advertising. Customer referrals are one of the most effective methods for generating new business. 

A customer that is happy with your business is much more likely to tell their friends and family about it than someone who was disappointed by your customer service or products. By providing high-quality products, great customer service, and a pleasant shopping experience, you can build an excellent reputation that will pay off in both short-term sales and long-term investments.

Loyal customers come back to your website and make repeat purchases. According to a study by eMarketer, repeat customers spend more than new customers and are less price-sensitive. Repeat customers have also been shown to be more valuable by as much as 100%.

So how do you get repeat customers? By providing excellent customer service! 

When you take the time to respond to customer concerns in a timely manner, you’re building trust and loyalty. It shows that you care about the person on the other end of the transaction and they will feel inclined to make a purchase with you again in the future.

  1. Cross-sell and Up-sell when it makes sense to do so

If you’re dealing with a customer who has already bought something from you, think about what else they might need or want. Can you offer them a product that will fulfill a need you know they have? Or can you add on additional products to their order for free or for a small fee? This is called cross-selling, and it’s an excellent way to increase revenue by selling additional items your customers already want.

Cross-sell whenever possible. One of the best ways to up your bottom line is to encourage customers to buy additional products while they’re buying something else, either because they need it or because they think they need it. For example, someone buying a pair of shoes might be asked if he needs socks, too. If he says no, he might be offered a discount for buying both together rather than just the shoes alone.

When developing a cross-selling strategy, it’s helpful for companies to understand what motivates their customers to make purchases. For example, when it comes to jewelry, customers are often motivated by the desire to express themselves through the accessories or gifts they give friends and family members. 

On the other hand, an up-sell is similar to cross-selling, but instead of offering customers an additional item, you’re offering them a more expensive version of the item they originally wanted. You might be able to convince them to spend the extra money without even making any changes to the dress they originally ordered. This is called up-selling.

  1. Increase Referral Rates

Identify the customers who are most likely to refer your product. This can be done by asking them a question. You might even want to conduct a survey based on this question.

Identify the customers who are satisfied (maybe even ecstatic) with your product or service, and ask them how they feel about referring it to their friends, family members, and colleagues. These people will undoubtedly be happy to refer your business in return for a reward or perhaps just a simple thank you.

Check out the referral rates of companies that have similar products or services. Then identify what kind of referral program would work best for your business. Do you offer incentives? Does your referral program require immediate action such as an email or phone call? How often should users receive updates on the progress of the campaign?

Keep track of all referrals generated through your campaign and keep tabs on how many new customers come from these referrals. This will allow you to see if there is a trend or pattern in customer behavior that you can use when designing future campaigns.

  1. Back up your Sales Team 

In the sales process, customer service is the power behind the product. If your product does not perform as expected, if it is not advertised accurately, or if it simply does not meet the customer’s needs, then your customer service staff can make all the difference in whether or not a sale is completed.

Based on this important role that your customer service agents play in your sales process, you might be interested in some of these suggestions for improving sales revenue with customer service:

Make sure that every customer has a contact person. When you have multiple levels of customer service to choose from, it can be hard for customers to know to who they should address their concerns. 

One of the ways that you can remedy this problem is by creating a system where every support team member has a specific level. If someone has a question or concern about their order, they can always talk to agent one first and then move up the chain depending on their answer. 

Create an FAQ page so customers don’t have to wait for an agent to respond. One of the best ways that you can improve your customer support team’s efficiency is by making it easier for them to handle issues as they arise. One way that you can do this is by creating an FAQ page on your website. 

  1. Focus on Improving your Customer Lifetime Value

The customer lifetime value is a key metric for businesses in every sector. Regardless of whether you’re a small business owner, a large enterprise, or a freelancer working from home, it’s important to know what drives an individual customer to come back and buy from you again and again.

The average life span of a new customer is up to 18 months. This is the time period when you can develop the customer and make him loyal to your business. If you work on retaining your customers and increasing their lifetime, you will increase their loyalty toward your brand as well.

Loyalty programs can also be a great way to increase customer lifetime value by encouraging repeat visits and encouraging referrals. Any business with repeat customers can benefit from these programs, especially in industries that rely on repeat clientele such as ecommerce sites. By using loyalty programs in order to attract new customers, businesses can increase their profits while maintaining the reputation of providing excellent service.


Mikkel Andreassen 

Customer Experience Manager at Dixa

Mikkel Andreassen is passionate about customer experience in every color of the beautiful customer engagement spectrum. He loves building great connections with his customers, which often lead to meaningful friendships that last a lifetime and inspire his work. Driven by the genuine belief that CX is the pivotal force that drives a successful business, he is currently at the helm of Dixa’s customer experience strategy.

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Twitter handle: @MikkelVes


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