Would you be surprised if you came to work one day and found that half your customers had left for your competitors? It’s okay if you suddenly got cold sweats imagining revenue drops, acquisition costs, and all your KPIs going horribly wrong this year. When you ignore customer satisfaction, you risk losing the business.
The importance of customer satisfaction cannot be overstated. It will be a necessity by 2022. According to Gartner, 81% of marketers perceive customer satisfaction as their main competitive advantage.
The competitive edge is not the only advantage. A study by PwC found that 59% of customers will leave a company after several bad experiences and 17% after one. Your previously loyal customers may also leave after a bad experience. Yes, they will not return.
What Is Customer Satisfaction?
Customers’ satisfaction is basically a measure of how well a company’s products and services meet their expectations. This is one of the most important factors affecting purchase intentions and customer loyalty. As such, it helps predict business growth and revenue. Consequently, it is helpful for predicting business growth and revenue. Despite what might seem simple, defining what “satisfied customers” means for your company isn’t that straightforward.
Think twice before you say, “I have a steady number of customers, so I think I’m good,” because you have a lot of purchases and recurring customers. Your clients may have simply forgotten to cancel their subscriptions. Perhaps they procrastinated switching to your competitors. Others may not have been comfortable complaining or seeking reimbursement. Neither of these reasons means they’re satisfied.
How Do You Measure Customer Satisfaction?
In the last few years, customer satisfaction has been one of the most important business indicators. Many companies have started measuring it and are trying to understand how much customers are satisfied and why they are not satisfied. In this post, we will help you understand customer satisfaction and how to measure it. What Is Customer Satisfaction? As a customer, you always want to be satisfied with your purchase.
You also want to feel that the products or services you have bought have been well-built. Many things can influence customer satisfaction. Some of them are Quality. The Quality of the product or service is the first thing you should consider. You should be able to check whether the product has been built properly or not. If you cannot check the Quality yourself, you should ask for it. For example, if you are buying an electric shaver, you should be able to see whether the blade is sharp or not. You should also be able to test its durability by using it for a long time. Service You should get the service you deserve. For example, if you buy a product from an online store and it does not work as it should, you should get a refund. You should be able to get this refund in a timely manner and without any hassle. Returns & Refunds If you are buying a product online, you should be able to return it for any reason within 30 days of purchase. The seller should provide you with a return label, and they should also send you a notification about the return.
What Is the Importance of Customer Satisfaction?
The purpose of customer satisfaction is to ensure customer satisfaction. I’ll give you a short answer: you need to care about customer success if you want a customer-focused business. However, there are other benefits to customer satisfaction as well. Let’s explore them. Check out our infographic on the importance of customer satisfaction for a quick visual summary.
Customer satisfaction can be measured in many ways. For example, we can measure it by measuring how satisfied customers are with their service or product. We can also measure customer satisfaction based on what percentage of customers say they would recommend your company to a friend or colleague. These are two examples of a customer satisfaction survey. This article will cover the basics of why you should care about customer satisfaction, some of the tools that you can use to measure it, and how customer satisfaction surveys can help improve your business. Why Should You Care About Customer Satisfaction? Customer satisfaction is important because it gives you insight into the experience that your customers have with your company. It helps you learn what your customers like, don’t like, and what they need to be successful. It also gives you an idea of the overall quality of your product or service.