In the online world where competition is quite fierce and new businesses enter the market every day, reaching success has become increasingly difficult. Not so long ago, businesses could’ve easily secured their position on the market and seamless growth by providing customers with high-quality products or services.
Today, however, quality simply isn’t enough to ensure success. Still, one of the things that can set a business apart from competitors is customer satisfaction. Happy customers will spend more, and more importantly, it’s easier to retain them and ensure their loyalty. The main reason this is important is that the consumers themselves set this trend into motion in one way or another.
It’s no secret that consumers have specific expectations, needs and even demands. If a business cannot meet consumer expectations, consumers will simply leave and most likely never do business with that company ever again. With that in mind, here are a few reasons why you should make customer satisfaction your top priority.
Retention as a result of satisfaction
Acquiring a new customer can cost up to 6-7 times more than it would cost to retain a customer. Customer satisfaction plays a vital role in their retention and the most important factor that influences satisfaction among consumers is customer experience.
Nowadays, providing customers with an exceptional and seamless customer experience, which includes service and support, is simply a must. If you cater to customers’ needs, you’ll be able to ensure their satisfaction. Now, when it comes to the overall experience, there are many factors in your interaction with consumers that contribute to their satisfaction.
For example, a fast, responsive, functional and reliable website ensures a seamless browsing experience. Also, how you respond to customer complaints and feedback determines good or bad customer support. The more effort you put into serving your customer appropriately, the easier it becomes to ensure their satisfaction. As a result, you’ll be able to retain customers, and repeat customers tend to spend 67% more than new ones.
Promotion as a result of satisfaction
Customers that are satisfied with your business, your offers and how you treat them are more likely to recommend your business to others. Customer satisfaction can, therefore, easily become a very powerful endorsement. As a matter of fact, word-of-mouth marketing is one of the most efficient strategies today.
The main reason is that satisfied customers are more likely to leave positive reviews either on your website or on your social media pages. That being said, 91% of consumers read reviews online. Furthermore, 84% of consumers trust such reviews as much as they trust personal recommendations. These referrals work better than any advertisement or marketing promotion you might come up with because consumers are more likely to trust the word of other consumers than take your word for it.
Profitability as a result of satisfaction
As mentioned before, repeat customers tend to spend more than new customers, which can improve your company’s profitability. As a matter of fact, a retention rate increased by just 5% can boost your company’s profitability by 95%.
But that’s not the only way customer satisfaction can have a positive impact on profitability and your bottom line. The fact of the matter is that every company strives toward having a positive cash flow, in order to avoid unwanted debt and other financial issues. When it comes to a positive cash flow, one of the major factors is getting paid in time.
One of the things you can do to ensure a debtor will be timely is to provide them with a bit of convenience, such as multiple payment options, scheduling invoice payments and so on. However, one thing is for certain: satisfied customers are more likely to pay their dues in time. That way you will have a steady revenue stream and a positive cash flow that will keep your company out of any financial troubles.
A competitive advantage as a result of satisfaction
Today, business reputation is more important than ever. Transparency in the form of how businesses operate, how they treat both their customers and employees and how socially aware they are, is something consumers will pay close attention to.
Customer satisfaction will easily spread the word about your dealings, thus resulting in a favorable reputation for your business. This alone can be a major competitive advantage. When you combine retention, loyalty, profitability and referrals, you immediately outrun even the more developed competitors.
The fact of the matter is that not many businesses focus on providing an exceptional customer experience, even though 86% of consumers are willing to pay up to 25% more for a seamless experience.
Some brands still rely on superior product quality that will leave consumers no choice but to buy from them. If you focus on providing customers with what they actually want and not what you think they want, you’ll not just favor a good reputation but you’ll also gain a competitive advantage that will guarantee business success.
Customer satisfaction is more than just a metric to be measured these days. As a matter of fact, it’s one of the most crucial factors that can ensure business success even on the overcrowded and highly competitive market. That’s why you should make customer satisfaction a top priority for your business.