2019 is becoming the year of laser focus on customer experience and satisfaction. Without decent customer satisfaction, people are not going to give your business a chance. They will pass it by, and they will invest in your competition. The sooner you face the issues that are impeding customer satisfaction, the better your entire business will do.
Why? Customer service and customer experience (CX) are the two ways you capture the hearts of visitors to your website, garner interest from the crowds you engage with on social media, and are what take leads to the conversion step and beyond. You need to work steadily and diligently on increasing customer satisfaction.
What Is Customer Satisfaction?
Before getting into the whys of customer satisfaction, it’s probably a good idea to create a clear description. Customer satisfaction is the extent to which a customer is pleased with the products or services that they have received from a business. In other words, customer satisfaction is a measure, a variable rate, of how good a service is and how well that service and/or product met their needs.
The Importance of Customer Satisfaction
Now, here are the reasons why customer satisfaction is critical to your business:
1. Loyalty Generates Revenue
According 2018 research by InMoment, 61% of loyal customers go out of their way to buy from specific brands and 60% make more frequent purchases than first time buyers. The same study also found that 50% of loyal customers will purchase more products in general.
But there’s another reason why you would want to keep your customers happy. An American study found that acquiring new customers could be 5 to 25 times more expensive than retaining loyal customers, depending on your niche. The advisory firm Bain & Co. also noted that increasing your customer retention rate by a mere 5% could boost your profit by 25-95% the same year.
That is why the brands that go beyond what is expected of them to give the customer the highest rate of satisfaction tend to do so well, even when the economy is in a slump or their industry isn’t doing particularly well one quarter. Keeping your existing customers happy is going to be difficult, yes, but if you want to generate revenue and have continuous revenue for years to come, you need to focus on maintaining a high customer satisfaction.
2. One Bad Experience Could Change Everything
Here’s food for thought: Research done by Accenture found that 47% of consumers will completely drop doing business with a company immediately after feeling disappointment in the brand. That means that, even if the product or service was satisfactory and the person had a decent experience with your brand, the moment you do something that upsets them, you could lose them forever. So, you just do everything you can to maintain a good image publicly, right? It’s more difficult than that. In fact, it could take up to 12 positive experiences to nullify the effects on one negative experience.
You can’t please everyone all the time, but you can learn from your mistakes. When a customer shares their problems with you, they don’t always expect those issues to be solved. However, by ignoring their pain points and the chance to better your customer service, you are also poisoning the well. You should never take your audience and their problems for granted. It will make your customers lose faith in you. Once one person tells their side of the story, you need to act, or ten more will follow that one client on the way out.
3. Stand Up, Stand Out Against The Competition
A study by Accenture found that 63% of global consumers will purchase products and services from businesses that have a purpose or take a stand on something similar to their own personal values and beliefs. 62% of the same respondents feel that businesses should take a stand on social, cultural, environmental and political problems that are relevant to them.
What these stats mean is that, if you align with the customer, you will get more attention that the competitor who remains neutral or works adversely to the audiences’ interests. Your rivals are always waiting for your branding, marketing, or employees to say or do something that causes your customers to leave you for them. That’s why brands are always waging wars against one another and instigating issues.
One way to stand up and stand out against the competition is to take the higher ground. Deal with any negative backlash with poise and stay true to your mission and objectives. If you stand for something, don’t be afraid to support the cause, whatever it may be. It’s guaranteed to bolster morale in both your employees and your loyal customers.
4. Brand Awareness and Growth
This shouldn’t come as a surprise, but customer satisfaction is how you grow your brand and gain a reputation. Without people to trust you, your brand will be hindered. If you want to increase brand awareness and grow your business, you need to focus on accruing a positive opinion about your brand. Happy customers won’t feel the need to go anywhere else, and they will refer their friends and family to you as well. This means that your revenue increases, you get a level churn rate, and your brand name gets spread via word-of-mouth.
You can use customer satisfaction to spread your brand, to. Keep the customer satisfaction in mind when you build new marketing campaigns or implement new features. If you have numerous loyal customers, your campaigns will get spread farther. You can even add incentives to boost their happiness even further and accelerate your progress. Later, you can send these satisfied customers surveys to get honest answers about where you are excelling and where your business could use some attention.
Great customer service is a way to satisfy your target audience and promote business growth. When your customers receive incredible service or have a great experience, they will give back in the form of revenue and sharing your brand. It’s as simple as that—but it does so much for your business. That is why customer satisfaction is critical. Without it, you would never get off the ground.