Customer satisfaction is an important marketing term that allows business owners to monitor their businesses. According to a survey of nearly 200 senior managers, 71 percent found customer satisfaction metrics very useful in managing and monitoring their businesses.
Best Indicator Of Customer’s Loyalty And Purchase Intentions
Customer satisfaction is one of the best indicators to know how likely your customer is going to make a purchase in the future. Asking your precious customers to rate their satisfaction on a scale of 1-10 lets you see if they’ll become repeat buyers or even advocates for your company!
Any satisfied customers giving ratings from 7 and above can be considered potential return purchasers, so expect them back again soon! Customers who give you 9s and 10s are great candidates that could potentially spread the word about your business by becoming loyal brand ambassadors.
It Is A Point Of Differentiation
In a cut-throat marketplace, businesses must stand out from the crowd. One way to do this is simply by ensuring high levels of customer satisfaction so that customers will have no desire to switch over to competitors’ products or services.
Which business would you choose to buy from if they offered the same product? If I had a recommendation for one, that’s probably what will make me decide. Recommendations usually start with good customer experiences – high satisfaction and lots of advocates! Businesses that offer great service create these environments, so people are more likely to recommend them when looking specifically at their products or brands.
There are many ways that customer satisfaction can benefit a company. Customer satisfaction gives insight into how customers feel about a product or service and is beneficial for existing customers, but it also distinguishes companies from their competitors when attracting new clients.
Reduces Customer Churn
This Accenture global customer satisfaction report (2008) found that price is not the primary reason for customer churn. Well, it is due to the overall poor quality of service.
Customer satisfaction is a powerful metric you can use to reduce your customers’ likelihood of leaving because measuring and tracking this will help create new processes with high-quality standards set within them and thus increase how satisfied your clients are!
I suggest you focus on exceeding customer expectations and wowing customers at every opportunity. Do that for six months, then measure satisfaction again. See whether your initiatives had a positive or negative impact on satisfaction.
Increases the Customer’s Value
Satisfied customers generate 2.6 times more revenue than slightly satisfied and dissatisfied customers, respectively. Additionally, a totally satisfied customer generates 14 times the amount of revenue that a somewhat dissatisfied customer does! Satisfaction is vital for any business’ success; therefore it’s important to keep your clients happy throughout their experiences with you.