Where to start with customer satisfaction?
Customer Satisfaction
Jonathan Scanzi
Apr 12, 2023
Customer satisfaction is key for the growth of your company. The formula says: When customers are happy with your products or services, they are more likely to recommend you to their friends and consider buying from you again. You don't need to be an expert to understand this formula.
Now comes the important questions, how do you measure the customer satisfaction? And once you have the data, how do you analyze it and take actionable steps to improve it?
No matter if you're a small business owner or a company's CEO, understanding the key factors that drive customer satisfaction is essential to achieve sustainable growth and success. Here we present you 3 important points that you need to take into account when starting to improve customer satisfaction.
Build customer loyalty
It is well known in marketing that when customers make repeat purchases is much easier and more cost-effective than attracting new ones. That's why prioritizing customer satisfaction is crucial for build customer loyalty and creating brand promoters for free, which can indirectly increases your sales. Sounds good, right?
However, not everything count and in marketing everything is possible so it's important to note that high customer satisfaction doesn't always means customer loyalty. While customer satisfaction is a necessary first step, creating a strong relationship with your customers is key to retain them. This involves the creation of a relationship strategy to engage with your customers, reward their loyalty, and build a community around your brand, and this, dear, takes time and money.
Example:
Let's say you have two companies that sell the same service and both have equally high customer satisfaction ratings. However, Company A earns twice as much revenue as Company B. Why?
The reason for this discrepancy is that Company A places a greater emphasis on building relationships with its customers. It provides more personalized support throughout the entire customer journey and even offers incentives to encourage customers to make repeat purchases. By doing so, Company A has cultivated a loyal customer base that's willing to spend more money on its services.
In summary, while customer satisfaction is important, building strong relationships with your customers is more important to achieve long-term loyalty and maximize revenue.
How to make it?
Engage with your customers
Reward their loyalty
Build a community around your brand
Which tools you can use?
Net Promoter Score or NPS is the best way to start to know your customer satisfaction. If it is the first time you read about this or even if you know already, don't worry, we wrote this article about How to Create a Net Promoter Score (NPS) to allow you to easily measure your customer satisfaction and loyalty.
Attract new customers
Let's start whit another marketing theory, when customers have a positive experience with your brand, they're more likely to repeat and share that experience with others. Everything is about the experience, your product can be the best product in the market, but if the customer experience is bad, you can loose a lot of them or even few new customers because the word-of-mouth.
So focus on deliver a high-quality product or service and create a positive customer experience. With this, you can create a virtuous cycle of customer satisfaction and word-of-mouth marketing. Always keep in mind that your customers can be your best sales strategy, and make sure to prioritize their satisfaction to maximize the potential of this free and powerful marketing channel.
Customer dissatisfaction
Last marketing tip (I promise), unhappy customers are more likely to share negative experiences than happy customers are to share positive ones. This, as you can see, can have a significant impact on your business, as negative reviews can spread quickly damaging your reputation that it has cost you so much time and effort to build.
So, the important question, how do I avoid this? Well, there is no magic formula for this, you will need to focus first in prioritize customer satisfaction to improve your customer experience, and then when you start to growth you'll need to create your own customer support team or invest in new technology to manage customer interactions on time.
This, of course, comes with an extra cost that you should start to take into accounts as your business grows.
Conclusion
Customer satisfaction and customer experience go hand in hand and complement each other, They coexist together. So if you have a start-up or scale-up you can focus in these two areas in order to get new customers and avoid customer dissatisfaction. If your company is bigger, you better start to create your customer support team in order to improve bad experiences and avoid bad reputations.
