I was recently disappointed by the level of service I received from some companies I contacted regarding an issue with their products or services. The interactions made me wonder if anyone cares about providing quality service and if customer satisfaction is a priority. However, customer satisfaction is crucial for retaining customer loyalty. Here is why customer satisfaction matters to your business.
Customer Satisfaction Definition
Customer satisfaction encompasses the customers’ entire journey from initial contact with your business, the quality of your products or services, the responsiveness of your various teams or the navigation through your website. Customers weigh satisfaction against their expectations and what they experienced with your business. The level of service and satisfaction customers receive from your company ultimately determines their overall satisfaction with your business.
The Importance of Customer Satisfaction and why it matters
What was your customer’s experience when interacting with your company? If a customer is unsatisfied, he will likely switch to a competitor, which reduces your bottom line.
- Research shows attracting new customers is more costly than retaining one. Companies usually spend money on advertising to attract new customers or may hire a marketing team, which may be expensive.
- In contrast, loyal and satisfied customers readily advertise your business to their friends and family because they are pleased with your products and services. Such advertising is free word-of-mouth advertising and cost-effective. Based on the reviews, these friends and family members become customers, leading to your business’s financial growth.
- Therefore, companies must prioritise exceptional products, services, and interactions to keep loyal customers and grow their business. When customers are satisfied, they return to your business and bring others.
How to Improve Customer Satisfaction
Gather Customer Feedback to Improve Business
Customers’ specific feedback provides insight into their perceptions of your business, encompassing your products and services. A company can streamline its policies and improve its services and products from feedback. In addition, customer feedback enables a company to ascertain what is working.
Ensure Response Times are a Win-Win
A business’s response time also contributes to customers’ satisfaction. For example, when a company responds to customers’ complaints, no matter the level, customers are satisfied. They know you are paying attention and working diligently to bring resolve. Remember, customer satisfaction matters in your business.
Make the Process Easy
Ensure that the systems in place, such as your policies and processes, do not frustrate your customers. Frustrated customers may complain once or not at all. If the company does not remedy the situation, they move on to another business where the processes are simple and easy to manoeuvre. Additionally, it is essential to ensure your support team is easily accessible to customers if they encounter any issues.
Ensure Staff Is Trained
A business should ensure it has sufficiently trained its staff to deal with various types of customers and issues to minimise wait times, are problem-solvers and have an apt for customer service. Every business should offer exceptional service as a standard practice and be in full effect regardless of who is on duty or who sits on the management the management team.
Customer Satisfaction Case Study
Here is a customer satisfaction case study.
LMNOP Car Rental was losing profits and customers to its competitor across the street, so owner Melanie conducted a customer survey. She discovered that customers were unhappy with the old, untidy cars, lack of gas in the tank despite including it in the rental price, broken down vehicles with no mechanic provided, and unhelpful staff. Melanie quickly took action and sold some cars to buy new ones, serviced them regularly, and hired car attendants to clean the cars and fill up the gas tank. She also invested in customer service training for her staff. She also changed the company policy to include providing a mechanic should a mechanical issue arise. Melanie added perks, including chilled bottled water and a list of activities and historical sites on the island. She slowly saw an increase in her new customer base. Though she had to hire a marketing team to rebrand her company, Melanie ultimately saw a return on investment due to customer satisfaction. Just imagine if Melanie initially saw that LMNOP Car Rental was providing exceptional service to clients; what profits would her customer base have amassed?
Customer satisfaction is crucial for a business’s reputation, financial growth, and customer retention. Satisfied customers bring in new ones, while dissatisfied customers switch to competitors. Companies must take necessary steps to ensure customer satisfaction, which leads to loyalty and profits.
Please contact us today to learn more about how we can improve customer satisfaction in your business.
Author: Monica S. Creque, Customer Service Strategist and Goal Success Coach