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Posted by Ed Morley - 18 October, 2018

5 Points that Emphasize the Importance of Customer Satisfaction

It's no secret that customers are the most important factor in any business.

Without customers, a business can't develop or grow. In today's market, competing for customers is fiercer than ever.

The main reason is that the modern market is overcrowded and highly competitive. Being able to attract customers is more important than ever.

However, simply attracting customers isn't enough to guarantee business success.

That's why ensuring customer satisfaction has become one of the most important business goals to increase revenue by growing customer lifetime value.

Satisfied customers are more willing to return for repeat business, which means it's easier to retain them. Also, ensuring customer satisfaction means ensuring their long-term commitment, engagement and loyalty.

Businesses that fail to satisfy their customers' needs will eventually fall behind their competitors and lose their share of the market. That being said, here are a few reasons to take customer satisfaction to heart.

Customer retention

As mentioned before, satisfied customers are more likely to return to your business. Retaining customers is just as important as acquiring them. The main reason is that it's 6 to 7 times more expensive to acquire a new customer than it is to retain an existing one.

Furthermore, return customers tend to spend 25% more than new ones. This can significantly benefit your profits, as increasing retention rate by just 5% can also increase your profits by up to 95%.

Importance of customeer satisfaction

That's why it's important to ensure customer satisfaction by providing them with an exceptional customer experience, service and support. If you manage to meet customer expectations, needs and demand, you'll definitely ensure that they're satisfied with your business. And, the more happy customers you have, the greater the likelihood of them becoming your most loyal customers.

Satisfied customers give referrals

Nowadays, customers prefer to do business with companies that aren't just able to provide good products or services, but also with business that can deliver a seamless customer experience.

Ensuring your customer satisfaction means that your customers will be more willing to give referrals to friends and family, as well as recommend your business to other consumers.

Customer satisfactionSource

In addition, happy customers are more willing to leave positive reviews about your business and your products or services.

Moreover, very happy customers can become brand ambassadors and advocates who will make an effort to promote your business further.

That being said, word-of-mouth recommendations can go a long way on today's market. As a matter of fact, 91% of online consumers read reviews online.

Not only that, but 84% of consumers trust reviews as much as they trust personal recommendations. With that in mind, satisfied customers can be of great benefit to your business.

Helps build your reputation

In today's modern day and age, reputation can mean the difference between business success and failure. Information spreads fast over the Internet, and one bad move on your part can result in a lifetime of bad publicity and smeared reputation.

That's why having satisfied customers is important. Happy customers mean good publicity and thus good reputation for your business.

Having satisfied customers means other consumers will be willing to do business with you and you'll favor good reputation as being a reliable business on the market.

Even a bit of inconvenience on your part can do wonders for customer satisfaction. For example, offering customers to pay via invoices is convenient for them, but could hurt your cash flow.

poor customer reputationSource

Still, there are many opportunities you can explore, such as understanding trade finance works, especially if you operate on the global market.

That way, you can ensure smooth business operations even when you're providing more convenience to your customers.

On the other hand, unsatisfied customers can easily ruin your business through an avalanche of negative comments and reviews. Once the negativity settles in, it's very difficult to repair your reputation and other consumers will simply avoid your business entirely.

Helps build relationships

Many businesses nowadays rely on the relationships they've built with their audience.

You can't build those relationships without customer satisfaction. For example, building a brand helps businesses form good and long-lasting relationships with their target audience.

But, if your customers aren't happy with how you operate, even branding won't do you much good to remedy that. Ensuring customer satisfaction helps you establish good relations with your customers.

Satisfaction, however, doesn't always have to come from good products or exceptional service.

That's important too, but satisfaction can come even form your brand engaging in effective storytelling to help educate, inform and entertain your audience.

Customers Stories

Once you manage to build strong relationships with your customers, all your other efforts, such as marketing, branding, sales and other will be much more effective and better received by your audience.

Gives you a competitive advantage

Not every business can provide good customer service and support and thus ensure customer satisfaction.

Many businesses rely on the superiority of their products and services or their large market share, that they don't pay much mind to customer satisfaction. That can be your ace in the hole for a competitive advantage.

As a matter of fact, 86% of consumers are willing to pay even 25% more for a better customer experience.

If you manage to meet consumer needs, you can outrun even the more developed and better-funded competitors who aren't focusing on experience and satisfaction of their clients.

Sustomer satisfaction and revenueSource

That's why customer satisfaction is so important and that's why it can greatly benefit your business.

Customer satisfaction has become one of the primary aspects of business success. Consumers look for businesses that can meet their needs and expectations and not only provide them with good products or services.

That being said, ensuring customer satisfaction is key to business growth and development.

Summary


What is the importance of customer satisfaction:

  1. Customer retention

  2. Satisfied customers give referrals

  3. Helps build relationships

  4. Gives you a competitive advantage

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About the Author: My name is Raul, editor in chief at Technivorz blog. I have a lot to say about innovations in all aspects of digital technology and online marketing. You can reach me out on Twitter.

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