A few reasons why customer satisfaction is important.
If you can't provide value to your customers, they'll simply move on until they find a business that can meet their needs and their expectations. Being able to satisfy customers aside from providing good products or services has become a key to business success. After all, happy customers are more willing to do business with you again and are willing to recommend your company to others as well. Therefore, here are a few reasons why customer satisfaction is important.
Reputation is crucial
Modern businesses rely, in large part, on their online reputation. Consumers these days are savvier and well aware of how the market operates. They also tend to share experiences between themselves over various media channels – social media platforms in particular. In other words, if your company does something wrong, the news will spread like a wildfire over the Internet and your reputation will be ruined practically overnight.
Ill-reputed businesses tend to lose customers and are avoided by other consumers as well. It takes a lot of effort, time and resources to repair damaged reputation and some businesses never recover from it. That's why it's important to ensure customer satisfaction. Happy customers will praise your business for its exceptional service and your reputation will grow on the market. Positive feedback from your existing customers encourages other consumers to do business with you and helps your company grow organically.
Satisfaction leads to retention
Today, it's all about having engaged and loyal customers. With some many options made available to consumers to choose between various businesses and their services, it's important to have something that will ensure customer loyalty. Otherwise, consumers will simply check out the next business in the sea of many. For consumers, switching between businesses isn't a problem. They'll keep searching until they find what they need.
On the other hand, for your business to lose customers to competitors means loss of profits and additional expenses that can easily ruin your business. However, ensuring customer satisfaction can help you retain customers, as well as ensure their loyalty. Consumers search for companies that can provide an excellent service and experience that will satisfy their needs. For example, rewarding your customers with specialized holiday presents, such as Christmas gift cards also leads to satisfaction and even retention. Retaining customers can benefit your revenue and bottom line, especially since repeat customers tend to spend 67% more than new customers. Also, increasing customer retention rates by 5% can lead to an increase in profits by 95%.
Ensures long-term engagement
Nowadays, it's important for businesses to establish meaningful relationships with their customers. Customers want to relate to the brands they do business with and have more relations aside from purchases. That's why many companies strive towards delivering value to their customers, in order to establish long-lasting relationships and ensure long-term engagement in their customers. Customer satisfaction plays a vital role in those relationships. Many companies develop relevant content to inform, educate or entertain their customers.
Others improve their customer service and support. If you don't know how to properly deliver value, you can always ask your customers for their opinions. For example, offer your customers an incentive by asking them to participate in paid surveys online. That way, you deliver value and get valuable information from them. Your customers will tell you what they want, and you can use that info to improve your efforts. In addition, your customers will appreciate the fact that you're listening to them and that you're improving your business in accordance with their feedback.
Satisfaction is an endorsement
As mentioned before, satisfied customers benefit your business reputation. But, that's not the only thing customer satisfaction benefits. Providing exceptional and seamless customer experience, service and support ensures customer satisfaction. However, satisfied customers also bring back to your business in more ways than just retention and reputation. Happy customers easily become advocates for your business and your brand's ambassadors. Satisfied customers will endorse your business and promote it further through word-of-mouth recommendations, referrals and positive reviews.
Good recommendations go a long way in promoting a business and extending one's reach. As a matter of fact, 84% of consumers will trust online reviews as much as they'd trust a personal recommendation from a friend. Word-of-mouth marketing can benefit your business more than advertisements and other marketing strategies you have in place to promote your business. Therefore, having satisfied customers will not only help you ensure customer loyalty, but also help you reach out to a wider audience on the market.
Customer satisfaction has become one of the major factors in business success. Happy customers tend to be engaged and loyal, which can prove to be a great competitive advantage on the market. If you manage to ensure customer satisfaction, you're greatly increasing your chances of running a successful and profitable business.