Customer satisfaction is a cornerstone of business growth and revenue. Delighted customers will return as repeat buyers, recommend your products to friends and family members and boost sales revenue in your store.
Customer satisfaction can help your business flourish – as a customer success professional, salesperson or marketer it can play a vital role. Here are a few benefits of keeping customers satisfied:
Increased Sales
Reducing customer churn is the key to increasing revenue, and satisfied customers are less likely to churn. Customers will return and buy more from you, recommend you to friends and family, write positive reviews online – which all helps your business to grow passively without you needing to exert effort directly into increasing it.
CSAT also gives your business insight into which aspects of its product or service customers find most important, helping you identify those which distinguish your company from its rivals and increase profit margins. Furthermore, satisfied customers are more willing to pay premium prices for superior offerings – leading to greater profit margins for your business. Finally, CSAT reveals key information regarding which features or aspects your customers find most appealing so your marketing and sales teams can better focus on differentiating themselves from competition.
Studies estimate that it costs approximately 6-7 times more to acquire new customers than it does to retain existing ones, making customer retention of paramount importance for companies of all sizes.
Increased Retention
Customer satisfaction is one of the key drivers of growth for any business. Customer satisfaction measures how well a product, service or brand meets customers’ expectations.
Satisfied customers are essential to brands’ success and give them repeat business, so companies focus on cultivating relationships with existing customers to foster long-term loyalty from existing consumers. Loyal consumers also account for a substantial portion of revenue through referrals, upsells, and repeat purchases for brands.
Retaining customers is five times cheaper than acquiring new ones, making customer retention rate critical for a company’s bottom line.
An effective way to assess customer satisfaction is with regular surveys, which allow you to quickly identify dissatisfied customers that may abandon or leave negative reviews, as well as happy ones you could convert into advocates. They’re also great ways to set and measure team goals relating to how many satisfied customers each team member can create each month.
Increased Loyalty
Customer loyalty can be measured in different ways: return rates of returning customers or those upgrading their account to get more out of it are all indicators that the brand has delivered on its promises and is making customers loyal enough to spend 67 percent more than new ones, according to data from Invesp.
Philip Kotler defines customer satisfaction as the feeling of pleasure or disappointment caused by the comparison between one’s expectations and perceptions of performance, of products or services provided to customers, and their perceived performance of such offerings. According to this cognitive theory, customer satisfaction serves as a leading indicator for future buying intentions and loyalty behaviors.
For your business to create and retain loyal customers, customer satisfaction should be an integral value and goal for every employee. While customer loyalty takes time and effort to develop, businesses that prioritize customer satisfaction see results sooner than later.
Increased Revenue
Finding an all-encompassing definition for life, love, pizza or customer satisfaction can be challenging; however, one thing is certain – without satisfied customers a business cannot survive.
Satisfied consumers are loyal customers, and loyal consumers can be an enormous source of revenue. Repeat purchases and upsells, as well as advocacy among friends and family can create repeat purchases and upsells – not to mention new customer acquisition.
Establishing high levels of customer satisfaction takes time and dedication, but the payoff can be enormously rewarding.
Customer acquisition costs can be 7-7 times greater than customer retention costs, so prioritizing customer satisfaction will save your business money in the long run while making sure existing customers remain happy – both of which will contribute towards expanding your business further.