Customer satisfaction indicates the fulfillment that customers derive from doing business with a firm. In other words, it’s how happy the customers are with their transaction and overall experience with the company.
Customers derive satisfaction from a product or a service based on whether their need is met effortlessly, in a convenient way that makes them loyal to the firm. Hence, customer satisfaction is an important step to gain customer loyalty.
Organizations calculate the customer satisfaction score (CSAT), which is the average rating of a customer’s responses, the net promoter score (NPS), which indicates the probability that a customer refers a brand to another person, and the customer effort score (CES), which indicates how easy it is for a customer to do business with a firm. The customer satisfaction metrics are then used to estimate consumer behavior.
Customer satisfaction is a part of customer’s experience that exposes a supplier’s behavior on customer’s expectation. It also depends on how efficiently it is managed and how promptly services are provided. This satisfaction could be related to various business aspects like marketing, product manufacturing, engineering, quality of products and services, responses customer’s problems and queries, completion of project, post delivery services, complaint management etc.
Customer satisfaction is the overall essence of the impression about the supplier by the customers. This impression which a customer makes regarding supplier is the sum total of all the process he goes through, right from communicating supplier before doing any marketing to post delivery options and services and managing queries or complaints post delivery. During this process the customer comes across working environment of various departments and the type of strategies involved in the organization. This helps the customer to make strong opinion about the supplier which finally results in satisfaction or dissatisfaction.
Customer satisfaction is the measure of how the needs and responses are collaborated and delivered to excel customer expectation. It can only be attained if the customer has an overall good relationship with the supplier. In today’s competitive business marketplace, customer satisfaction is an important performance exponent and basic differentiator of business strategies. Hence, the more is customer satisfaction; more is the business and the bonding with customer.
Customer’s perception on supplier helps the customer choose among the supplier on basis of money value and how well the delivered products suit all the requirements. The supplier’s services never diminishes after the delivery as customer seeks high values post marketing services which could help them use and customize the delivered product more efficiently. If he is satisfied with the post marketing services then there are good chances for supplier to retain the customers to enhance repeated purchases and make good business profits.
It is necessarily required for an organization to interact and communicate with customers on a regular basis to increase customer satisfaction. In these interactions and communications it is required to learn and determine all individual customer needs and respond accordingly. Even if the products are identical in competing markets, satisfaction provides high retention rates. For example, shoppers and retailers are engaged with frequent shopping and credit cards to gain customer satisfaction, many high end retailers also provide membership cards and discount benefits on those cards so that the customer remain loyal to them.
Higher the satisfaction level, higher is the sentimental attachment of customers with the specific brand of product and also with the supplier. This helps in making a strong and healthy customer-supplier bonding. This bonding forces the customer to be tied up with that particular supplier and chances of defection very less. Hence customer satisfaction is very important panorama that every supplier should focus on to establish a renounced position in the global market and enhance business and profit.
Importance of Customer Satisfaction
A Loyal Customer is a treasure you should keep and hide from the world
According to the White House Office of Consumer Affairs, on average, loyal customers are worth up to 10 times as much as their first purchase. Some research says that it is 6-7 times more expensive to acquire a new customer than it is to keep a current one.
Banks or mobile providers know it best, so they don’t have any problem with going the extra mile for a customer who is not quite satisfied and often offer him something special. Not only it is more expensive but also much more difficult to keep existing and loyal clients (let alone keeping them fully satisfied and happy!) than to gain some new ones.
Take this rule into account while organizing your customer service processes and do your best to look after them.
They can stop being your clients in a heartbeat
Is not rocket science, nowadays clients easily switch their love brands. It is often caused by terrible customer service. Clients waiting for ages to get feedback or comment from a brand? Unacceptable! But it still happens. And gaining clients’ trust takes up to 12 positive experiences to make up for one unresolved negative experience.
“When customers share their story, they’re not just sharing pain points. They’re actually teaching you how to make your product, service, and business better. Your customer service organization should be designed to effectively communicate those issues.” :Kristin Smaby, “Being Human is Good Business”.
You can’t gain customers’ satisfaction forever, you need to look after them all the time. Try to talk to them, instead of to them. Ask questions, offer constant support, send personalized messages or offers, use dedicated customer satisfaction survey tool or any other technique that will help you communicate with your customers and collect insights.
Take care of each and every one of your clients’ needs and you’ll be rewarded with their gratitude and loyalty. It sounds like a good deal, doesn’t it? Brands often take their audience for granted, and they’ve never been so wrong one decision, or lack of it, can result in losing a lot of clients and their respect.
That’s why measuring clients’ satisfaction is so important.
It’s (all) about the money, too
It shouldn’t be surprising, but customer satisfaction is also reflected in your revenue. Customers’ opinion and feelings about the brand can affect, in both positive and negative way, the essential metrics such as the number mentions and repeated transactions, and also customer lifetime value or customer churn.
Happy customers won’t look at your competitors offers they will happily interact with your brand again, make a purchase and recommend the product further. If you meet all of their requirements and answer their needs while delivering the best quality of your services, they will be fully satisfied.
Not to mention your brand will increase sales revenue!
Measuring customer satisfaction should become your daily habit – not something you do from time to time and only if you’re about to face crisis management. If you don’t know how to do it right, you can take a look at our guide to measuring customer satisfaction to make things easier.
Customer satisfaction is a factor that helps you stand out of the competition
Kate Zabriskie once said that “Although your customers won’t love you if you give bad service, your competitors will.” and we couldn’t agree more.
Your competitive rivals are just waiting for you to make a wrong move. What is more, they can often play the role of an instigator. Being prepared for their provocations is not enough if you don’t know how to deal with the negative backlash.
However, if you provide your customers with amazing customer service, you will gain arguments to convince those uncertain of your services.
Great customer experience can take your brand places
The importance of customer satisfaction should never be neglected. You should consider it especially while planning your marketing and positioning campaigns. Satisfied customers are more likely to share your content across social media.
They will also more keenly interact with your posts, leaving some delightful and admirable comments. Later you can use it as the source for case studies and success stories. Being an example of a company that provides a ravishing customer satisfaction? Every brand should aim for it.
Providing great customer service will satisfy both you and your targets. They get proper service, you get a proper revenue and everyone is happy.
Remember when I said that we are obsessed with customer satisfaction? This free to start survey tool will help you to research your customers’ satisfaction and get valuable insights that will immensely boost your business.