Building successful business is on every business owners mind. Increasing market share and customer loyalty is a retailer’s primary goal. The more customer’s satisfaction the more their customer loyalty, the more customers shop in their store and the more likely increase of sales and profits. Consumers, however, have different choices as to what they purchase and to whom they purchase it from. They may choose either catalog, retail store or the internet.
Customer satisfaction is used to measure how products and services provided by the retailer meet or surpass customer’s expectation. It is an important aspect of your business because it provides you with a metric that you can use to improve your business hence improving your profits and business growth. These are the four top reasons why customer satisfaction is so important for your business.
It’s a leading indicator for customer loyalty
Customer’s satisfaction will determine if a customer will make a purchase in the future or not. A satisfied customer can be your potential advocates who can preach to other people about your company, products, and services. You can safely expect them to make back with their friends and make repeat purchases at the same time introducing their friends.
Customer Satisfaction is a Point of differentiation
Business is a competitive marketplace where you compete for customers. Customer satisfaction should be your key differentiator. Companies who provide amazing customer experiences create a conducive environment where customer satisfaction is high and advocacy is plenty.
Increase customer lifetime value
Customer satisfaction plays a huge role on how much revenue your customer will contribute to your business. Successful businesses understand the importance of customer satisfaction, they understand that if you increase your customer satisfaction rate, you increase your marketing dollar returns. Satisfied customers contribute to more revenue than a somewhat satisfied customer.
Improves customer loyalty
It costs you more time to acquire new customers than retaining the already existing customers. Acquiring customers cost a lot of money. Your company spends thousands in marketing to get customer attention, nurturing them and leading them into sales. You save a lot more on customer retention. Customer satisfaction leads to customer loyalty.
Customer satisfaction plays a huge role in the success of your business. Not only does it increase revenue or used as a differentiation key point, but it’s a leading indicator to identify an unhappy customer and measure your other customer loyalty. Customer loyalty has significant implications for retailers and small businesses.