Why Customer Satisfaction Matters
Sure you have heard you need to please customers. Truly, what does customer satisfaction mean to you? Dig deep and answer the question.
For me and for my clients, our businesses thrive because we take customer satisfaction very seriously. We want happy customers who buy more often, spend more money, refer us to family and friends and who stay with us long-term. This is why and how our businesses are profitable.
Satisfied customers are a key asset in your business. When customers are satisfied they pay their invoices on time, too. That is certainly important to your business, as well.
I suggest you get customer feedback right away. This can be through a comment card, survey or questionnaire, through focus groups, or other means.
I believe in measuring satisfaction because it determines your profitability. Harvard Business Review says that customer loyalty is a better predictor of profit than market share. That right there should be your wake up call.
Dow Chemicals reported a 1% increase in customer loyalty generated a 1.2% increase in account share. IBM reported a 1% gain in their customer satisfaction index resulted in $100 million in extra sales in a five-year period.
If you don’t measure satisfaction and truly understand what customers think of your company’s service and products, then you may have customers who leave and purchase products and services elsewhere. Poor service is why most customers move away from you.
In fact, service differentiates more than your product, service, and price, most of the time.
What are you now going to do to find out from your customers the answers to this question, “What does customer satisfaction mean to you?”. Once you know what that looks like to them, you can create your company to match their realistic desires.