There’s an old business phrase that says “the customer is always right.’’ It’s something everyone agrees is true, but few very know why. There are dozens of factors contributing to the success (or failure) of a business, customer satisfaction is one of them. If you’re looking to improve your business, read some of the reasons you should be obsessed with customer satisfaction.
It increases the customer’s lifetime value
Starting a business is difficult, and most of the time owners never want to listen to critiques. You’re sensitive about your work, it’s only human nature. However, complaints can actually be of value. When customers share their stories, they’re not just sharing pain points. They’re actually teaching you how to make your product, service, and business better. Make a list of negative comments and use them to assess your weakness and find solutions. Once people see that you’re willing to communicate with them about their issues and evolve, they will definitely give you a second chance.
It’s cheaper to retain customers than acquire new ones
Obtaining a new client can be an uphill battle, first, you need to catch their attention enough times for them to eventually give your business a try. This process can be expensive. Research says that it is 6-7 times more expensive to acquire a new customer than it is to keep a current one. Once someone becomes a first-time customer, their opinion and likelihood of buying again weigh on two things: the quality of the product and how they were treated by the business. All it takes is one good experience and you’ll have a customer for life.
It reduces negative word of mouth
Did you know 71% of consumers who have a positive experience with a brand are likely to recommend it to friends and family? Researchers also found that an unhappy customer tells between 9-15 people about their experience. In fact, 13% of unhappy customers tell over 20 people about their experience. This goes to show the power of word of mouth.
Customer satisfaction is tightly linked to revenue and repeat purchases. Businesses often forget the chain reaction a negative review can cause. It’s one thing to lose a customer because they were unhappy. It’s another thing completely to lose 20 customers because of some bad word of mouth.
The key to a successful business is to be obsessed with your customer and the journey they take from being a potential consumer to a loyal ones. There is so much value in taking time to talk to the customer, asking for their opinion, and making sure they receive their orders in a timely manner. If you make a promise to a customer, do everything you can to keep that promise.
If people are going to talk about you, always make sure it’s positive.
