5 Reasons Why Customer Satisfaction Is Still a Crucial Business Metric
Customer satisfaction has become a hugely important metric in today’s highly competitive business environment. Those business’ that adapt to the customer’s needs and wants will survive and thrive, while for those who don’t, failure is inevitable. For the business’ who have got it right and are thriving today, it’s clear they understand the importance of rock solid customer service. This is more than just “the customer is always right”, this is treating your customers as more than just a source of revenue. It happens by truly going out of your way for them and bringing some sort of added value into the scenario. If you are delivering sincere value to your customers, you have the customer’s best interests at heart and corporate greed hasn’t consumed you.
Any business that is serious about their competitive landscape and future growth needs to understand why customer satisfaction is so important. Not only is it about the obvious fiscal returns but it goes far beyond that, delving into the very existence of who a business is and why they do the things that they do. The following five reasons outline its importance as a business metric:
- It indicates customer loyalty – Customer satisfaction is the best indicator of the likelihood of a consumer to purchase from the same brand in the future. The perceived value from the product/service influences customer’s judgement in regards to their loyalty with the product/service and thus company. A high level of customer loyalty is a good indicator of the company’s future survival and growth.
- It helps retain customers – Research has shown that it is up to 7 times cheaper to keep customers, rather than to acquire new ones. Not only is it more expensive but it is also more difficult to acquire new customers. As retention is so closely related to satisfaction, it is crucial that businesses take proactive measures in maintaining good relationships with the customers to ensure customer satisfaction. This will help in attaining repeat customers and earning brand advocates, thereby earning more customers down the line.
- It acts as a point of differentiation – Studies have shown “89% of consumers have stopped doing business with a company after experiencing poor customer service”, exhibiting how poor customer satisfaction increases customer churn. In a saturated market where competition is high, having excellent customer service and high customer satisfaction acts as a unique selling point. It can help a business stand out from the crowd, acting as a source of competitive advantage.
- It helps in spreading good Word of Mouth – Positive feedback about your company can lead to increased sales and thus revenues, whereas negative feedback can damage your reputation and lead to a decrease in profits. Therefore, maintaining a high level of customer satisfaction is critical to promote good word of mouth.
- It helps predict future revenues – Satisfied customers are more likely to make repeat purchases, whereas dissatisfied customers will likely turn to competitors to purchase. In addition, satisfied customers are more likely to recommend a brand and its products/services. Therefore, knowing you have a high rate of satisfaction among customers can help you predict sales and thus revenues.
Call Pageboy has over 40 years’ experience in the provision of customer service. We ensure that all call agents are expertly trained in providing your customers with a positive customer experience and go above and beyond to maintain customer satisfaction. After all it doesn’t matter if your company sells top of the line products, if a customer doesn’t enjoy the interaction that they have with your company, you can be at risk of losing them as a customer. We offer a range of customer support services to help businesses in their goal of providing a seamless, hassle free customer experience journey. If you would like to know more about the customer services that we offer, contact us here today.