4 Reasons Why Startups Must Have Awesome Customer Service

Startups absolutely cannot afford to offer bad customer service – their finances and brand will suffer.

Startups have a lot to worry about when launching. Between securing funding and hiring great staffers, customer service can fall by the wayside. The problem is, startups cannot afford to offer bad customer service – their finances and brand will suffer.

Here are 4 important reasons why startups must offer great customer service.

1. Because Users Expect It

Now that most brands have social media platforms, customers voice concerns right on Facebook or Twitter. And they want an answer fast. According to Edison Research, 42% of customers who use social media for customer service expect a response within an hour.


About a quarter of users can wait the rest of the day, but this means startups must monitor online conversations and answer users fast.

2. Because Your Product Probably Isn’t Perfect

And that’s OK. Startups are startups for a reason – they are just starting out. The platform may not be perfect, but users are forgiving, as long as they know what went wrong will be fixed. When a startup launches in beta, they sometimes rely on users to identify faults, which can be great feedback for the company. However, those users deserve something in return – strong communication and solved problems.

3. Because You Need Early Adopters

Every startup needs those early adopters who stick by your product, even when it’s not perfect. Startups must treat those customers with special care, because customers are two times more likely to share bad customer service experience than a good experience.  Furthermore, it takes 12 positive customer experiences to make up for one negative experience, according to Parature. Getting one bad review early on could damage your brand.

It’s also financially effective for your company to have great customer service. According to Bain & Co, a 10% increase in customer retention levels results in a 30% increase in the value of the company. And aren’t most investors looking for valuable startups?

4. Because You Can’t Afford to Lose Customers

A whopping 89% of consumers have stopped doing business with a company after poor customer service. And for startups, that would be a huge loss. While established companies have the luxury of being able to lose a few customers, startups simply do not. Keeping existing customers is huge for startups, because those customers can spread the word about the company.

In all, 55% of consumers would pay more for better customer experience, so startups can capitalize on this by offering awesome customer service right out of the gate. Since there is so much competition in the startup technology world, having fast and efficient customer service is one thing that can set your startup apart.