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Top 5 Impacts of Excellent Customer Service on Brand Loyalty

Updated: Apr 4


Impacts of Customer Service on Brand Loyalty

Brand loyalty in a growing and expansive market like Nigeria depends highly on customer satisfaction. This fact is true all over the world. 


However, it is more important in a market where you have a lot of small-scale businesses looking to expand. New competitors enter a niche every day, whether small or exclusive. 


So, it would help if you built a brand that keeps loyal customers. What impact do exceptional services have on brand loyalty? Let's see the top five impacts. 


Top 5 impacts of excellent customer service on brand loyalty


There are several benefits or impacts of excellent customer service on your brand as a whole. These impacts exist in different categories and affect your brand's various aspects. 


This article highlights five (5) impacts on brand loyalty. They are: 


Enhanced brand reputation


Excellent customer service enhance brand reputation

In the development stage, gradually building a good brand reputation is important for small businesses. When customers know what to expect from your brand regarding customer service, that is brand reputation. 


While big businesses have a buffer space for brand loyalty, small businesses do not have that luxury. Hence, building the right reputation at the right time is important. 


That is where impressive customer service comes into play. In a competitive market, your brand goods or services might not be unique in what they offer. But with stellar customer service, you build a unique and positive reputation. 


What about a bad reputation? Based on a recent study, 73% of customers will move to a competitor if they have more than one bad experience with a brand. 


Brand reputation gives customers an idea of what to expect; when you deliver over and beyond, they remain loyal to the brand. 


Business Growth through Referrals


Word of mouth recommendation is the best way for generic growth

Organic business growth by customers who have tested, trusted, and approved all vital elements of your services is another impact that drives brand loyalty. 


It is the fastest way to grow in small businesses like the Nigerian market. What does this mean? 


Who do most people trust when purchasing goods or services from a brand? The answer is family and friends. 


Who's opinion do people hold in the highest regard when making market decisions? Your answer remains the same. The facts back this up. 


According to research, 75% of customers recommend a brand after outstanding customer service. Excellent customer service helps build trust in your brand's identity. 


This trust develops into loyalty, and when the opportunity arises, it leads to brand advocacy. Online reviews have their influence, but nothing is as generic and convincing as word-of-mouth reviews and referrals. 


Improved customer retention and loyalty


Customer retention is cheaper than customers acquisition

Customer retention is another impact of excellent customer service on brand loyalty. Latest research shows that 88% of customers will make another purchase if the customer service is good. 


75% mentioned doing business again with a brand with impressive customer service even after making a mistake. A brand's quality of goods or services will impact customers' reviews. 


But more importantly, it is customer service. We have seen that this leads to customer satisfaction, customer retention, and loyalty. 


The best part is that a 5% increase in customer retention can increase your profit to 90%. Also, 20% of your customers can be the source of 80% of your brand's profits. 


You should also know that retaining your customers is cheaper than acquiring new ones. So, with excellent customer service, you get to keep your customers. And that is a big part of brand loyalty. 


Boost Sales 


Consumers will pay premium if great service is guaranteed

The rate of repurchase and second-buy increases significantly when your brand has fostered loyalty through excellent customer service. 


When customers are happy with their dealings with your company, they want to enjoy that feeling again. This feeling of satisfaction, in turn, boosts your sales without much advertising and marketing. 


Your customer service approach can employ several strategies. Free deliveries or samples, promotions, and loyalty bonuses boost sales with exciting customer service. 


It directly impacts sales, and 65% of US customers agree. These customers declare they will pay up to 5% more for products if the brand or company provides superb services. 


By creating a brand identity known for great services, consumers naturally move to repeat businesses. 


A boost in sales allows you to upscale your business and expand your reach. You also keep that element of brand loyalty. 


Differentiation from Competitors

A good selling point for your brand is the quality of your customer service. In a market where similar products offer the same value, your brand's worth is viewed through the lens of your services. 


Customers want to feel like they are a part of your business growth. That is the highlight of brand loyalty. 


With great services, your customers will easily make your brand the preferred choice in an ever-expanding competitive market. If you are growing a business, your success depends highly on how you can be distinct from your competitors. 


If your brand makes mistakes, your brand reputation and loyalty help you to retain consumers' trust. That sets you apart from your competitors. 


When your brand identity becomes unique and distinct, you position yourself as a leading brand in the niche. And there is no better way to stand out than to stand ahead. 


Brand Identity with Seriphics


The role of excellent customer service is clear in building your brand loyalty. However, it is important to note that brand identity is the first point of advertisement to potential customers.


Brand identity and brand image highlight your value and goal. They tell your potential customers what to expect. 


You build brand loyalty when you meet those expectations through top-notch customer service. So, a solid foundation in building brand identity is important. 


At Seriphics, we work closely with your company to build a brand identity highlighting your strength as a developing brand. 

We help to craft the best brand identity that showcases your image. 

Work with us and gain insight into strategies to help your business stand out. 




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