Customer satisfaction measures how your product, service, and overall experience either falls short, meets, or exceeds customer expectations. How you measure it varies from business to business. Some may base it entirely on retention and repeat customers, while others may create a numerical value based on data and/or customer feedback. Regardless, it measures, rates, and attempts to manage how happy your customers are with you, your products, and your brand as a whole.
Beyond the growth correlation if you actively work to increase customer satisfaction, you’re more likely to see an increase in revenue. There are plenty of other reasons to make it a top priority.
Publicity: It works both ways. A study showed that 60% of consumer share a bad experience with others and they tell 3x as many people compared to only 46% who share the good ones. The takeaway? You’d better do your best to ensure each customer interaction is a positive one. If you don’t place a premium on relationship marketing and customer satisfaction, you won’t be aware of problems or complaints until it’s too late. A satisfied customer would always tell other about your brand.
Brand loyalty: Why would a happy, satisfied customer ever look elsewhere or want to leave you? Return customers tend to buy more from a company over time. As they do, your operating costs to serve them decline. What’s more, return customers refer others to your company. They’ll often pay a premium to continue to do business with you rather than switch to a competitor with whom they’re neither familiar nor comfortable with.
Brand trust: Consumers trust people even more than they do advertising and marketing.
Increased profitability: A satisfied customers would usually want to purchase more products or services. Once trust and loyalty has been established, you have a customer that would keep coming back to buy more.