Businesses require profits to survive and flourish. A huge customer base brings more profits thus increases the possibilities of survival and growth. It is obvious that a happy customer brings more business to a company in different forms. Ideally, when the customers are happy, they inform their friends about the products and become regular clients. They will come back if they are satisfied with the service or product offered by you.
Thus, customer satisfaction is a significant component of every business. It is a term used in marketing that determines how products and services meet consumers' expectations. It offers marketers & business proprietors some metric, which is utilized to measure & improve the performance of a product or service from a customer perspective. It can also offer initial warning signs if a business is losing its potential clients. Customer satisfaction data helps understand which marketing scheme is successful & where does the scope of improvement lies?  

Why is customer satisfaction important?

Competition differentiator: Customer satisfaction plays a key role in making brands. In this competitive world, many brands are competing with each other. But, a brand stands out in the crowd only if it understands its consumers' needs. Organizing marketing campaigns & promotions will not be effective if your customers aren't satisfied with your products. Brands having low levels of customer satisfaction are more likely to fail in the competitive market.

Decrease customer churn: Apart from a common belief, pricing isn't the main reason for increased customer churn. It is customer service instead. We know various expensive brands with wide customer base. Customer satisfaction can be understood from the scores & inputs from CSAT surveys to develop customer-service processes. Poor customer service can hinder your brand in a long run. Seek constant customer feedback to track progress & routinely share it with the service representative.

Customer retention is cost-effective: The cost to acquiring new customers is 6 to 7 times more than retaining the current customers. This shows how significant customer satisfaction is. Along with spending money on getting new customers, one should also lay a special emphasis on improving the prevailing processes & systems to retain customers.

Reduce negative word-of-mouth: An unhappy customer is most likely to share his/her unpleasant experience with others. It is estimated that a person on an average talks to about 9 to 15 people about their experience with a brand/service/product. With the increasing number of customers who are not satisfied with your products, the number of potential buyers decreases. It adversely affects the business income & brand reputation.

Repeat customers: Satisfied customers are likely to buy from you another time. One of the easiest ways of understanding this is via customer satisfaction assessments. You can ask about their levels of satisfaction on a scale & determine the customer that will be happy to buy from you next time.

Support pillars: Satisfied customers are more likely to stand by your side during crisis; they care about the brand & need to see it thriving. It has happened in several cases for big brands.

Decreased marketing expenses: Satisfied customers are your biggest supporters. Their positive feedback can help your brand popularity increase, and credibility will help you get new customers. This way it reduces the marketing expense to some extent as well.

Customer satisfaction could bring mind blowing outcomes for many businesses. It is so powerful that it can either make a business stand out or fall.

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Why is customer satisfaction important?

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