How important is it for you as a small business to please your customer? Do you think your company should be concerned with customer satisfaction?
Customer satisfaction refers to how well a company’s products and services meet or exceed the expectations of your customers. It is considered an important indicator of how well your business is doing today, but more so how well it will do in the long run.
Why is customer satisfaction important?
In a dynamic marketplace where thousands of established brands compete for clients, customer satisfaction has become a critical component of business strategy.
As a rule, when you see a decline in customer satisfaction, you can accurately predict that sales and profitability will be negatively impacted. In contrast, higher level of customer satisfaction usually forecasts increased customer loyalty and purchase intentions. Customer satisfaction may be your biggest differentiator especially if you are a small business owner.
In general, a satisfied customer is likely to:
- Become a return customer.
- Remain loyal to your brand.
- Become your unofficial advocate.
- Be less attracted to competing products.
- Contribute to your long-term success.
These are powerful marketing advantages that could determine the faith of your small businesses. Generally, customers listen to other customers. When a happy customer shares a positive experience with others, this unintentionally convinces them to give your business a try. For instance, when you wish to book a hotel online, you turn to the review section of the website to read about other customer experiences before making a decision. A few positive reviews become the determining factor for you choosing the given hotel.
Why is it important to measure satisfaction/collect feedback?
Today, many firms ask for customer feedback using various approaches. For some, “how are we doing?” survey leaflets may work, for others it may be an online short survey to be filled at the end of a transaction. Regardless of how you collect this information, it tells the customer one thing – “Your satisfaction matters to us, and we want to serve you better”.
Measuring customer satisfaction is important for businesses to be able to better manage and further improve their offering. It also:
1. Makes the customers feel appreciated.
When you ask your clients to rate their experience, it sends them a message that you value their opinion and you are considering improving your product or service based on their recommendations. It makes them feel appreciated knowing that your business is there to serve them.
2. Serves as market forecast indicator.
You may be able to measure how well you are doing today by simply looking at your numbers. However, your customer satisfaction ratings tell you about how your business will do in the future as there is a direct correlation between customer satisfaction and sales.
3. Tells you how to improve your operations.
Looking at your product through the eyes of your customers will help you narrow down and invest in the exact area that needs strengthening. This will allow you to maximize customer loyalty, and change the mind of your unsatisfied customers before they leave you for your competitor.
4. Helps your employees focus on meeting customers’ expectations.
By gaining valuable insight from your customers, your employees will have a more realistic and tangible goal to fulfill.
5. Warns you of problems when your ratings fall.
Measuring customer satisfaction could serve you well and prevent your company from experiencing declining numbers. Pay attention! When your ratings fall, it oftentimes is an indication that your sales may drop as well. Knowing this in advance will give you an opportunity to react fast.
It is in your interest to welcome all feedback from your clients regardless of the format. You should especially appreciate negative feedback as it tells you that there is something wrong about the way you do business and allows you the opportunity to react immediately.
Visit this link to learn how to set up your customer satisfaction survey today!
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