Why customer satisfaction is important

Why customer satisfaction is important

Customer satisfaction is an extremely important index, its used to measure how much the products and services have met it’s customers expectations.

In times that the customer acquisition cost is extremely high, small and medium companies have focused its energies to promote better experiences to the customers, the goal of this kind of action is directly realized in the customer satisfaction index.

Customer satisfaction concept with businessman hand drawing smil

Five reasons why you should worry about customers satisfaction

  1. It’s one of the greatest indicators for predictability for loss of customers (churn)
  2. Satisfied customers are prone to additional purchases
  3. Reduces negativism  via word of mouth
  4. It’s much cheaper to retain customers than to acquire
  5. It’s a propellant of motivation for those involved in the delivery of the product or service

It’s one of the greatest indicators for predictability for loss of customers

Measure customers satisfaction allows you to adapt your processes and even your product or service to correct generalized points of dissatisfaction and to promote an even better experience for your customers.

This kind of metric allow you to take segmented actions to the customers that are unsatisfied, prone to give up of your product or service. This causes that less energy is spent on this problem and more assertive is the treatment.

Do you want to know more about churn? Retention:the way to a sustainable growth

Satisfied customers are prone to additional purchases

Customer satisfaction is the best index of how willing the customer is to make a new purchase, like a new product or an upgrade in some service.

A great tool to identify who are these customers is the Net Promoter Score (NPS). Through a simple question about satisfaction in a 0-10 scale it’s possible to select who are those customers that trend to promote your product or service.

In this way, besides it get easier it becomes more effective the inclusion of a new offering.

Do you want to know more about NPS? The one number you need to grow

Reduces negativism via word of mouth

Studies demonstrate that unsatisfied customers trend to expose their negatives experiences to until 15 people. This profile is characterized as a detractor, it’s very probable that he not only stop of being your customer but also spreads to their acquaintances a negative recommendation about your brand.

The impact that a high number os detractors in your base can cause is really worrisome. One thing is to lose a customer only because he is unsatisfied. But now imagine you corrupt other 15 possible customers because of a bad recommendation done through some acquaintances.

To solve this problem the satisfaction index measurement must be a continuous practice and with low period of recurrence, allied to some effective decision making for solving the objections found during the assessment.

Do you want to know more about this impact? Word of mouth

It’s much cheaper to retain customers than to acquire

The cost for the acquisition of a new customer can be seven times higher than the cost to keep someone that already is your customer.

Generate attraction and interest for possible new customers require a lot of spending with marketing, besides of the possible spending that might exist with a sale team. Now imagine if you could spend a portion seven times lower of resources with these teams and get the same results.

There are many ‘hacks’ that you can use to increment your customer satisfaction and consequently increase the retention

  • Be close to your customer, contact him frequently and seek to understanding if your product is still corresponding to the expectations. Don’t waste the chance to surprise him positively.
  • Keep your customers up to date about things of their interest, promote events, or maintain a blog with news of their areas.
  • Offer custom experiences, people like to feel exclusives, allow a differentiated treatment for each customer.

Do you want to know more about the difference between retain and acquire customers? How much a customer worths

It’s a propellant of motivation for those involved in the delivery of the product or service

When a amazing job is done and its recognized by the customer, the individuals engaged in the construction of this experience stay exposed to a feeling of being on the way to the right destination. In high performance teams this kind of acknowledgment gives energy for the team to go ahead and to overcome itself more and more in the next challenge.

It’s important to be in the right path having the acknowledgment from the customer, it’s also important to celebrate this approval. But it’s good to remember that satisfaction is variable and sensible, therefore it’s important that at each new month is provided an experience better than the last month.

What have you done to measure the satisfaction of your customer?

The customer satisfaction has an extremely important function for any company and at any growth stage. Not only for measure customers loyalty, identifies unsatisfied customers, increment revenue and reduce churn. But also to help the entrepreneur to attract healthy and qualified customers, where the company can be sure that its product or service is will really correspond to the expectations.

NPS®, Net Promoter® & Net Promoter® Score are registered trademarks of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld.

I love to understand why people do that they do and how things work, so I can influence in human behavior and provide amazing experiences.

Dambroz J. E – who has written posts on loyalnow.

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