Customers are our lifeblood. Although, we devote significant resources to acquire new ones, however, far less resources are used to strategize the retention of existing customers. A Harvard Business School study found increasing customer retention by 5 percent led to a 25-95 percent increase in revenue. While customer churn is an issue all companies have to deal with, the potential incremental revenue from customer retention highlights the importance of having a sound customer retention strategy in place.
In simple words, customer service stands at the forefront of every business. Hence, it becomes crucial for businesses to offer a trustworthy medium such as a knowledge base to the clients that will help them interact and engage in the best possible manner.
Here are some of the key ways an enterprise can use a knowledge base to build a better connect with the audiences and improve customer satisfaction.
- Customer Service Software makes Customer Acquisition cake walk
One of the easiest ways to improve customer acquisition is to place more knowledge in the hands of customers by streamlining access to online knowledge bases. A knowledge base gives customers easy to navigate access to information that would otherwise require contacting an employee from the organization. A number of customer service software applications are available that allow users to contribute to an enterprise knowledge base or to create their own.
This approach to customer service is particularly effective where the product or service is complex or highly technical in nature. Another area where free knowledge base software is proving effective in customer acquisition is complex industrial products where the customer needs to collaborate with both the vendor and the vendor’s suppliers in a hub relationship where the end product is customized.
- Retaining Customers
Customer service software enables seamless customer retention by improving customer satisfaction. There are six reasons why customer satisfaction is important:
- Leading indicator of customer repurchase intent and loyalty
- It’s a point of differentiation
- It reduces unproductive customer churn
- It increases the lifetime value of a customer
- Minimizes negative customer word of mouth
- Cheaper to retain an existing customer than acquire new ones
Allowing customers to access a FAQ centered knowledge base simplifies the interaction for both the customer and the organization. Customers appreciate the option of being able to both self-diagnose and resolve entry-level issues without having to go through the typical ticket-based systems employed by many customer service centers. The company benefits by having its total customer support costs reduced by screening out the simple or entry level customer queries from its customer support center queue.
- Creating An Online Knowledge Base Drives Productivity
Being able to tap into an extensive repository of prior experience and solutions, case studies and technical expertise helps to avoid time intensive episodes where your employees are constantly “reinventing the wheel” because they lack access to prior solutions. A knowledge-centered approach to customer service, employee training, technical support and inducting new employees improves productivity and staff morale around processes that require information sharing and collaboration.
- Knowledge Bases Enable Content Creation
In a content-centric Internet marketing environment, the effective creation and reuse of content is a major cost both financially and in terms of resources needed to run content management systems. Your online knowledge base enables your company to reach new audiences and attract new website visitors based on the content you create and share. You can leverage content ideas captured in your knowledge base as a source to create blog posts and articles, together with lead magnets and social media content such as image galleries and videos.
Capturing content ideas and examples in a free knowledge base software package is a great way to reduce your overall content costs and ensure you never run short of ideas for your content publishing calendar.
- Unlock Social Insights and Sharing
By creating an online knowledge base and opening it to employees, you gain access to their insights, experiences & gather it in a central place where it is available company-wide. Your employees can also share information collected in your knowledge base with the customers via your company’s social media links.
- Drive Continuous Improvement
Every business needs to constantly search for ways to continuously improve its performance. Creating an online knowledge base makes identifying and capturing ideas for continuous improvement simple. Your employees no longer waste time and effort looking for files or shifting through vast email chains or social media discussion posts to recover examples which can be reused in other parts of the organization.
- Maintain Relevancy
One of the challenges for today’s enterprises, particularly the ones operating in complex and rapidly shifting environments, is maintaining the relevancy of information. Using free knowledge base software applications, organizations are able to manage new information and data updates ensuring this new information is readily available internally and externally. As employees interact with the knowledge base, they constantly add and update existing information, to maintain its relevancy and ensure that it is in sync with the current trends. This process also facilitates the speedy identification of problems as they emerge, allowing them to be addressed quickly.
A well-organized company knowledge base will save your business money and lost productivity by reducing the time and effort it takes to locate information. Creating an online knowledge base is one of the most cost-effective support tools available to enterprises nowadays. It’s flexibility and ease-of-use enables it to be both customers facing reducing the costs of servicing the client support needs and an integral source of support for internal teams.
Author Bio:- Robin is a Technical Support Executive. He is an expert in knowledge management and various Knowledge base tools. Currently, he is a resident knowledge management expert at ProProfs. In his free time, Robin enjoys reading and traveling.