How Customer Service Skills Directly Affect Your Bottom Line

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How Customer Service Skills Directly Affect Your Bottom Line

Customer serivce skills will affect your bottom line

Are you struggling to compete and draw in new customers when you can no longer afford to lower prices?

Are you watching your customers leave you for a competitor with the same products as you?

It may be a result of your customer service skills.

If you desire to grow your business and raise your bottom line, read this article to find out how to use customer service skills to better your business.

How Customer Service Skills Can Raise Your Bottom Line

This is Sam.

customer service skills can grow your bottom line

This is Sam.

Sam runs a successful auto-repair shop. He loves his job, and he enjoys helping customers.

He has seen substantial growth in his business as he continues to raise his bottom line.

This is Jack.

Good customer service skills will raise your bottom line

Jack owns an auto-repair shop in the same town as Sam. He offers all of the same services as Sam and has similar prices.

However, Jack can’t seem to draw in business.

His bottom line has stayed the same, and he’s struggling to compete with Sam.

Why is Sam doing so much better when it seems like their businesses are the same?

Jack’s Customer Service Skills

Jack tries his best to compete with Sam, but he can no longer afford to lower his prices.

Why is Sam doing so much better?

Let’s take a look at Jack operating his business on a daily basis:

Greeting Customers

Jack and his employees man the front desk of the office space when they are not in the garage working on cars.

When customers walk into the shop, they briefly look up but do not say hello and make no comment. Customers immediately feel uncomfortable and nervous about approaching an employee for help.

When they do approach the front desk, Jack and his employees offer a passive, canned response to the customer’s greeting.

The customer had hoped to find a mechanic he could trust, but he begins to doubt that Jack will hit that mark, and he is hesitant to ask for help.

Responding to Questions

Customers will have a lot of questions when having work done on their cars.

They want to make sure that their vehicle is in good hands. They need to know that their mechanic is someone that they can trust.

When a customer approaches Jack with a question, he acts like they are interrupting something important, and he doesn’t have time to talk to them. He mumbles his response and treats the customer’s question like it is stupid.He creates angry customers through his lack of ability to listen to customers. Jack must develop a positive attitude while listening to customers issues.

Having skills for customer service will raise your bottom line

When he answers questions, he often doesn’t respond in a timely manner. His customers don’t feel like they’re being heard. Many customers see Jack’s poor response to their questions as shady, and they decide they cannot trust him as a mechanic. His body language shows that he isn’t listening. Jack has poor active listening skills and virtually none of this soft skill.

Jack’s customer service skills are clearly lacking in this area.

Updating Customers

If a customer gives you their car to fix and take care of, they’ll want to be kept informed on the process.

When Jack is working on a vehicle, he often doesn’t respond quickly to customer inquiries about the status of the vehicle.

He doesn’t outline his plans so customers know how he will fix their cars. Customers are often left in the dark. When they call and ask for an update, employees are busy and have poor phone rapport. They want a customer service agent that goes the extra mile to satisfy them.

Customer frustration begins to grow as a result of Jack’s bad customer service and communications skills, and they begin to look elsewhere for a mechanic.

Delivering the Result

When the car is finally finished and ready to be picked up, customers want to know the steps that were taken to fix it.

Jack simply presents the finished vehicle without explaining his process.

The final product may be delivered with the quality of a good mechanic, but customers remain unsatisfied. Jack’s lack of strong customer service skills leaves them feeling like they weren’t properly taken care of and results in lower customer satisfaction.

The next time they need work done on their car, they avoid Jack’s repair-shop and go to someone else.

Customer service skills in your business will help raise your bottom line

Sam’s Customer Service Skills

Sam knows that he can raise his bottom line by providing a great customer experience.

He’s proud of his skill sets as a mechanic, and he knows that he delivers good work.

Sam knows that the skills required in his job go beyond simply being a mechanic.

Customers are comfortable going to him with their car troubles, and he enjoys the opportunity to assist them.

Greeting Customers

When customers come into his shop, he greets them warmly. He asks how their day is going and assures them that he’s happy to help them with their vehicle.

Many customers have been coming to Sam for years. He greets them by name and keeps up a friendly rapport.

When new customers approach him, he welcomes them and makes them feel comfortable. Customers begin to trust him and are ready to seek his services.

Responding to Questions

Sam loves to help his customers. He wants to assure them that he will do his best to provide a great service, but he knows that they will still have questions.

Sam has excellent customer engagement. He possesses the organizational skills required to show his customers that he understands their problems and wants to help them with his technical skills and training.

When customers approach Sam and his staff with questions, he takes the time to listen carefully to their concerns. He treats each individual as a valued customer and responds to their questions with attentiveness.

Customers feel assured by Sam’s customer service skills, and they trust him as their mechanic.

Updating Customers

When it comes to having the key skill of customer service, Sam knows that customers will appreciate being updated on the status of their vehicles.

They have entrusted their cars into his hands, and he wants to assure them that everything is running smoothly.

Before beginning his process, Sam outlines his plan for fixing the car’s problem. When he completes a big step in his plan, he notifies the customer so they know exactly what’s going on.

Customers don’t worry about the status of their vehicles. They trust Sam, and he makes them feel like they are a vital part of the process.

Delivering the Result

When Sam promises that a car will be ready in three days, he delivers on that promise!

When a customer receives their repaired vehicle, they are confident that the work is sound. Sam tells them all the steps he took to fix the car and lets them know some of the steps they can take to maintain their vehicle’s quality.

raise your bottom line with good customer service skills

Customers appreciate Sam’s attentiveness. They’ll definitely return to him when they need auto repairs in the future, and they don’t hesitate to recommend him to others.

Sam has built strong customer relationships through how he is interacting with customers. He has strong time management skills and is able to listen to his customers, while still being productive throughout his day.

The Bottom Line

Even though their services and prices are the same, Sam still gets more business than Jack. He continues to raise his bottom line while Jack’s stays put.

When it comes to customer service skills and teamwork skills, Sam far outranks Jack. Customers go to him because they trust him and have a good experience.

Implementing interpersonal skills through both nonverbal and verbal communication is critical in improving your customer relations. Your customers want to know that you have top skills in customer service.

Improved customer relations will inevitably lead to improved customer feedback, which will help to grow your business quicker and more effectively. When customers are satisfied with your customer service representatives and customer service professionals, it will very likely increase customer loyalty as well.

Business owners should realize that any job involving the selling of a particular product to a customer is, essentially, a customer service job. It may not be in the sense of a live chat with customer service roles in a call center, but it is in that you must satisfy your customer to keep that customer.

Being able to simply provide product knowledge bases will help customers learn more about your product, and feel comfort in that they have a resource to turn to. Many times, companies will also start posting on social media to give their customers a more friendly, available feel.

Having customer service skills also means remaining calm while receiving customer complaints. This is especially true when dealing with a clearly frustrated customer who might have had a poor encounter with your business.

When you deal with customers who have had a poor experience, you must use effective communication methods to make them feel heard and understood. Positive language develops positive experiences.

Sam does things like that. As a result, Sam gets more customers than Jack and his bottom line rises.

Don’t be like Jack. Good customer service skills can raise your bottom line! Learn more about customer service skills by reading 8 Best Customer Service Examples to Inspire Your Team!

When employers look for and post jobs for a customer service team and then host a job interview for applicants, the employers must discover if they have the essential customer service skill of dealing with difficult customers, as well as general customer relationship management skills. If they can deal with difficult customers, they can handle the easy ones with no problems.

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Example of High Risk Merchants

  • 1-900 Phone companies – If you’re the type of company that charges people to have a chat on the phone, you’ll be considered high risk.
  • Adult Bookstores – Clearly a part of the adult entertainment industry, and an easy mark for the high risk tag.
  • Adult Entertainment – Any business labeled with the “adult” descriptor will automatically be assigned a high risk status.
  • Adult Toys – As “adult” is in the name, it’s an easy target for association with the adult entertainment market.
  • Airline Industry – Due to cancellations on high ticket purchases, this will put your airline company in the high risk category
  • Amazon Stores – By having a high rate of return, Amazon stores are seen as high risk.
  • Ammo Sales – Association with the weapons industry guarantees high risk status.
  • Annual Contracts – Any time an annual contract is involved it can be considered highrisk because most consumers forget they signed up and chance of chargeback can be high.
  • Antiques – With a high average ticket per item, antiques are considered a risky merchant type.
  • Astrology – The study of the celestial bodies and the influence on human affairs can be a chargeback target if customers feel like they aren’t getting the answers they want.
  • Auctions – Because of the nature of bidding on a product and not having a set price the risk level goes up.
  • Autographed Collectables – There is almost always a question as to whether an autograph is authentic, and therefore chargebacks are much higher in this industry.
  • Automotive Brokers – Brokers of automobiles have a very high average ticket are are therefore of higher risk.
  • Bankruptcy Attorneys – Since the people who are working with bankruptcy attorneys are usually in financial trouble, the odds that a payment would be charged back is higher.
  • Betting Services – In many states betting is illegal but for the legal states betting with a credit card has huge chargeback implications.
  • Brokering – When a third party is involved with selling a product the risk level goes up ten fold.
  • Business Loans (Merchant Cash Advances) – Loaning money is always risky, but with business loans and startup lending, high risk is present by the nature of the business.
  • Casino – Just like a betting service, if a customer gambles with their credit card the chargeback rate sky rockets.
  • CBD Products – CBD itself poses high chargebacks because of the legitimacy of the product and the health benefits promised.
  • CBD E commerce – CBD E Commerce has twice the charge back of retail CBD because many consumers don’t feel like the product they receive gives them the benefits promised.
  • Check Cashing (Check Processing) – The level of fraud in check cashing and cash advances is what gives this industry a higher risk consideration.
  • Cigarettes – With higher levels of risk for theft and criminal activity, cigarette sales are deemed high risk.
  • Collection Agencies (Collection Agency) – Many banks see collections as an unsustainable business model that is many times unreliable.
  • Collectible Coins – A higher level of chargeback in this industry gives it a high risk tag.
  • Collectible Currency – Due to the level of inauthentic collectibles, the risk of chargebacks are much higher with collectibles.
  • Copyrighted eBooks – When someone sells something copyrighted without permission many legal issues can arise.
  • Coupon Programs – With many coupon programs the coupons expire and once they expire the consumer wants the money back they spend.
  • Credit Counseling – Due to their clients usually being in financial problems, this industry is fraught with non-payment and fraud.
  • Credit Protection – Most people that need credit protection are bad with money so chargebacks abound.
  • Credit Repair – If a consumer needs credit repair then chances are they are a high risk for chargebacks.
  • Currency Sales – Many businesses that exchange currency do it at incorrect rates hence more chargebacks.
  • Dating Services – Dating is a volatile industry, and is also lumped in with the adult entertainment industry, making it a high risk account.
  • Debt Collection Services – As the collection of debt isn’t always possible, this industry retains the tag of risky.
  • Debt Consolidation Services (Debt Consolidators) – Consolidating debt is a challenging business and as debt is usually the problem, it’s seen as unsecure from a payment perspective.
  • Debt Repair Services – Since the clients of debt repair services are usually having financial challenges, it makes this industry seem a higher risk.
  • Discount Health Programs – Many people don’t feel they are really getting a discount so they try to get their money back and if they don’t the chargebacks sky rocket.
  • Discount Medical Care Programs – Just like the discount health programs if they don’t save the consumer wants their money back.
  • Drug Paraphernalia – Anything that is associated with the drug trade is considered high risk. Offshore merchant accounts are commonly used for this type of business.
  • E Commerce – As the source of the payment is unverifiable at the point of sale, any transaction without the card present has a higher risk of credit card fraud.
  • Ebay Stores – Many people sell items that aren’t as described so chargebacks can be an issue.
  • Electronic cigarettes – much like traditional cigarettes, e-cigarette sales are also deemed high risk.
  • Electronics – This industry has a much higher ticket compared with many other businesses. A chargeback for a $3,000 tv or two and your account can be in jeopardy rather quickly.
  • Escort Services – This is deemed a part of the adult entertainment industry and therefore needs a high risk merchant account and payment solution.
  • Event Ticket Brokers – If a customer buys a ticket and doesn’t use it they feel like they can charge the transaction back.
  • Extended Warranty Companies – Warranties are rarely used so people try to charge back the money that has been spent paying for them.
  • Federal Firearms License Dealers – Any organization associated with guns or firearms is automatically considered in this category.
  • Fantasy Sports Websites – Just like gambling, if a person starts to lose too often they try and charge back the transaction.
  • Finance Brokers – The entire financing industry is risky. By simply extending credit to other individuals, this business is betting that a majority of them will actually pay what they say they will.
  • Financial Advising/Consulting – The high risk tag on financial advisors isn’t about the advisors or their firm. It’s about the clientele and their current circumstances.
  • Financial Loan Modification Services – Due to a clientele in financial struggles, the high risk term is applied to any payments in this industry.
  • Financial Planning – Anything that includes risk for the consumer can have consumer implications with chargebacks.
  • Financial Strategy – Another risk and reward category, if money is lost, consumers try charging back making this a high risk industry.
  • Fortune Tellers – When a person doesn’t hear what they want to hear, or what is told doesn’t happen, the fortune teller can receive huge chargebacks.
  • Furniture Sellers – High risk only when its custom furniture.
  • Gambling – If money is lost the chargebacks rise.
  • Gaming – Chargeback levels skyrocket when consumers don’t win.
  • Get Rich Quick Programs – It’s rather common in this industry for an individual to purchase the training and then chargeback their purchase saying it didn’t deliver on what was promised.
  • Google Stores – With a high rate of return on their items, Google stores are considered high risk.
  • Gun Sales (Firearm Sales) – The gun and projectile industry is automatically associated with high risk credit card processing.
  • High Average Ticket Sales – With any high average ticket, just a couple of chargebacks can mean a massive shift in how risky the account is deemed by the processor.
  • Home/Vacation Rentals – Many issues with chargebacks can take place if the consumer decides not to travel.
  • Horoscopes – Many people believe this is hocum so will chargeback transactions.
  • How To Programs – A common practice in this industry is to purchase the program and charge it back with the description that it didn’t deliver what it promised.
  • Hypnotists – Many merchants will charge back these transactions if results they hoped for were not met.
  • Import/Export Business – Another example of taking goods over country borders which automatically brings in additional risk to any processing account.
  • Indirect Financial Consulting – When using a third party to consult, the high risk status gives the processor fraud protection.
  • International Cargo – Any time you introduce a multi-country element to credit card processing, the ability for fraud to be introduced skyrockets.
  • International Merchants operating in the US – Since the merchant isn’t operating from the United States, there are many unknowns about what is happening on the other side of their business, thus increasing the risk.
  • International Shipping – Transporting goods between countries is risky and introduces all sorts of elements to the financial stability of any transaction.
  • Investment Books – consumers get upset if the investor isn’t right which can lead to chargebacks.
  • Investment Firms – As investments are never a “sure thing” this is considered a risky industry for having a merchant account.
  • Investment Strategy – Anything with future promises can lead to chargeback.
  • Knife Sales – weapons of any kind are automatically given high risk status.
  • Kratom E Commerce – Accepting payments online is high risk, and Kratom is a substance in the health and wellness industry, which is also considered high risk.
  • Life Coaching – With no tangible goods involved in the transaction, life coaching is considered high risk.
  • Lingerie Businesses – Associated with the adult entertainment industry, chargebacks abound.
  • Lotteries – In most states you can buy lottery tickets with a credit card but if you’re allowed to and the ticket is not a winner, consumers try to chargeback the transactions.
  • Magazine Sales – Many magazine sales are recurring subscriptions, which can have issues with chargebacks.
  • Magazine Subscriptions – Same as magazine sales chargebacks can be huge when a recurring subscription happens. (often referred to as recurring billing.)
  • Mail Order Companies – When something is ordered through the mail chargeback risk can go up.
  • Marijuana Dispensaries – As marijuana isn’t a legal substance in every state, this is considered high risk due to the legality of the product. Cannabis credit card processing is available through Shift Processing.
  • Matchmaking Services – Another branch of the dating tree, and often associated with the adult entertainment industry.
  • Medical Devices – If a medical device doesn’t do what’s promised the purchaser may chargeback the transaction.
  • Membership Organizations – This is another instance of where the transactions don’t have any tangible product and are easily charged back to the merchant account.
  • Merchants on the MATCH list – If you are a merchant who has been reported to the MATCH list (Member Alert to Control High Risk Merchants) or the TMF (Terminated Merchant File) you are given high risk status.
  • Merchants with Poor Credit – Merchant accounts are given based on the credit score of the business owner. It’s assumed that the business owner is going to be making the financial decisions for the business, and a poor credit score reflects on the viability of any business transactions.
  • Modeling Agencies – At many agencies models are promised the world and it doesn’t happen. The consumer then wants their money back.
  • Movie Downloads – Transference of a digital product is considered of higher risk. Also, rarely is a physical card present at time of purchase.
  • Multilevel Marketing Sales – Often associated with pyramid schemes, MLM sales are considered a risky business.
  • Music Downloads – Purchasing any digital product is considered to be of higher risk than a physical transaction. Most of the time the card is not present in a digital transaction using a shopping cart.
  • Not A US Citizen Doing Business In The US – It’s possible to get a merchant account without a US social security number, but not having a SSN will increase the risk the processor will have in issuing a merchant account for your business.
  • Online Adult Membership Sites – If you’re running a website that is adult themed and requires payment for access, this is a highly volatile account and definitely high risk.
  • Offshore Corporations (Offshore Merchants) – The international element is what gives the high risk tag when looking for domestic merchant accounts.
  • Online Gambling (Online Gaming) – Without a card being present and gambling as the activity, there are two reasons why this would be on this list. Online payment alone is risky even without the gambling element.
  • Overseas Exporting Services – The introduction of the international element is what gains access to this list.
  • Pawn Shops – There’s a general stigma that goes along with pawn shops, and it’s reflected in their assignment to the high risk processors list.
  • Penny Auction Sites – Even though the customers are usually bidding at only a penny more per bid, users will commonly charge back the transaction when they don’t win.
  • Pepper Spray – Considered a type of weapon, pepper spray vendors are considered risky.
  • Points Programs – Points programs that cost money can cause chargeback issues if points are not used.
  • Pornographic Merchants – If you’re a part of the adult entertainment industry in any way, you’re considered high risk.
  • Precious Metals – Counterfeit metals can be a problem in this industry, making it more risky to accept payments for.
  • Prepaid Calling Cards – Anything prepaid that a consumer may not use increases chargeback issues.
  • Prepaid Debit Cards – When they expire or are lost consumers want their money back.
  • Psychic Services – “Honey, did you visit a psychic? No babe, I don’t remember visiting a psychic.” I’ll just reverse that charge then.
  • Real Estate – A common target for scams and identity theft is how real estate makes this list.
  • Replica Products (Watches, Handbags, Wallets, Sunglasses, Etc…) – As the product being sold isn’t authentic to the original manufacturer, the percentage of requests for refund is much higher than a traditional merchant.
  • Rewards Programs – If rewards are not spent, the consumer wants the money back.
  • Self-Defense – Since the payment provided is for instruction and not a physical product, the self-defense industry makes this list.
  • Self-Hypnosis Services – Yet another instance where the goods being transferred are of a service and not a physical product.
  • SEO Services – With a high rate of request for refund, SEO agencies make this list.
  • Social Networking Sites – Just like a dating site, if a consumer does not get what they want from it, they always like to chargeback.
  • Software Downloads – The software industry makes their way on to this list because of the digital nature of the goods being sold.
  • Sports Forecasting – An example of paying for information and not for a product, and usually not in person where the card would be present for the transaction.
  • Startups – Every startup is considered risky, and the percentage of startups that make it is quite small compared to the number that fail.
  • Student Loans – With the cost of a college education continually on the rise, so is the percentage of loans that default and never receive payment.
  • Strip Clubs – Associated with the adult entertainment industry gains the strip club access to this list.
  • Stun Gun Sales – considered a type of weapon, which makes it a high risk merchant.
  • Supplement Sales – The request for refund in this industry is quite high due to the nature of the product.
  • Sweepstakes – “Hey, I entered a sweepstake and I didn’t win. I’d like my money back please.”
  • Talent Agencies – “I paid thousands of dollars for headshots and glamorous outfits and I haven’t gotten any paid gigs. Pay me back my money please.”
  • Telemarketing Services – Telemarketing services many times do not have the results the purchaser would like to see, so the services are charged back.
  • Telephone Order Sales – Anything ordered over the phone has a increased risk of chargeback.
  • Timeshare Companies – When timeshares aren’t used, people want their money back.
  • Travel Agencies – If trips are not taken, consumers would like their funds returned.
  • Travel Clubs – Many travel club discounts aren’t what they were promised, increasing risk for chargebacks.
  • Vacation Rental Brokers – Third party brokers on prepaid vacation can have issues when customers cancel their trips.
  • Vape Shops – The level of criminal activity and theft is higher with vape shop merchants and therefore carries a high risk label.
  • Vitamin Sales – If the vitamins don’t provide the results the merchant would like to see they chargeback the transactions.
  • Web Designer – Because this service is prone to chargebacks, it has been classified as high risk.
  • Weight Loss – Considered risky because the results aren’t really up to the company, but rather the individual has to stick to the plan to get results, often resulting in chargebacks.
  • Yahoo Stores – Since the goods sold through Yahoo can easily be returned, they are considered a risky merchant.

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