The Importance of Customer Satisfaction for Your Marketing Strategy
In marketing, customer satisfaction is a means of determining whether or not the products and services business or a company is offering meet or exceed the expectations of the consumers. Customer Satisfaction as a marketing strategy can increase the profitability of a business and see it grow. Every entrepreneur should think about the customer satisfaction marketing strategy as it comes with a lot of benefits including;
- Encourages customer retention and reduces customer churn.
Contrary to what most people would expect, the main reason contributing to customer churn is not price, but it is the poor quality of products and services offered. If you work hard to satisfy your clients, they will keep doing business with you.
- Encourages repeat buying.
Satisfied customers tend to come back and do business with you. This will not only help you increase your revenue, but also establish a good business relationship with you.
- It limits corporate crises
If your customers are satisfied with your products and services, they will want your company or business to survive any crisis that may come around. They may even try to assist you in ensuring the business survives. A huge advantage to your business.
- Disclosing your brand through positive word of mouth.
Satisfied customers can sell your brand and business for you. They recommend your products and services to their friends and relatives through the word of mouth communication.
You need to understand that word of mouth communication is vital to your business because most potential customers tend to trust the person that has already used the product or service more than they can trust you.
A happy customer can take their time and share online the experience they just got from, say, a fashion shop. Again, unhappy customers can damage your business through negative word of mouth communication.
- Boosts market share and revenues.
As discussed earlier, customer satisfaction promotes customer retention. This fact contributes to increased market share and revenues.
A study done by the Strategic Planning Institute shows that companies that had very high customer satisfaction ratings experienced a market share growth of up to six percent and in general, they charged up to ten percent more for the product and services they offered.
It is imperative that you understand that it is always cheaper to retain a customer that to obtain a new one.
So how can the satisfied customers be used to generate marketing?
- Online reviews
Experienced customers and potential customers tend to do a lot of research on the products and services they intend to acquire. Product reviews by consumers always come in handy. Reviews often have information about brands, services, workability of products, experiences, and recommendations.
Now, satisfied customers can help generate marketing of your business by positively reviewing your products and business online.
- Recommendations and referrals
Happy customers will recommend your business to friends and relatives through the already discussed word of mouth communication.
How to insert customer satisfaction into a marketing strategy.
A wise entrepreneur will learn from customer satisfaction and use it to improve and grow their business. You can involve customer satisfaction in your marketing strategy by applying the following tips.
- Taking advantage of dissatisfaction.
Unhappy clients will often share their experiences or complaints with their friends, coworkers, relatives, on product review sites, on blogs or social media. Use the dissatisfaction as an advantage and attempt to improve the goods and services you are offering.
You can reach out to them, listen to them and inform them about the changes you have done. This will promote your customer experience.
- Be keen on the feedback.
As a matter of fact, only the customers know what they want. Listening to them and getting their feedback can be a great way of knowing what they expect of you. They can also tell you what you need to do to improve their satisfaction.
Again, reaching out to your customers for feedback can help you realize what your competitors might be doing right or wrong. This will assist you with your marketing strategy.
- Customer service.
By all means, customer service is directly related to customer satisfaction. You can insert customer satisfaction into your marketing strategy by using customer service. Advising your clients and potential clients about the various products and services your business offers is not only a promotional strategy, but a means of giving audience to them.