Why Customer Satisfaction Is The Making Of Great Companies

The only way to ensure that your company will continue to not only thrive, but grow in the future, is to look after your customer base. Learning how to review customer satisfaction levels is an important aspect of your development programme. It will help management tweak long-term plans and goals, implement strategies to improve individual employee performance and help to increase the effectiveness of marketing strategies and direct customer interaction and policies.

Learning about your customers and their levels of satisfaction with the service and/or product that your company provides them is the only way to improve as a company. What are the benefits of surveying customers, or utilising various methods of calculating customer satisfaction?

Are Your Customers Likely to Repurchase? – One of the main reasons you should look at customer satisfaction levels is that it is a key indicator as to whether a customer is loyal to your brand and service, and whether they are likely to repurchase from you in the future. Say, for example, that you survey customers and ask for a rating out of 100 to see how they feel about you. Those offering over 70% satisfaction levels are likely to return and purchase from you again. This type of scoring also allows you to see those customers providing extremely high ratings; the type of customers who are likely to become advocates for your brand and spread the word to friends, family and colleagues.

Stand Out From the Competitive Crowd – Whichever industry you are working within it is likely to be ultra competitive. One way that any company can stand out and make a difference is through customer service and the satisfaction levels of customers. If you can’t beat the competition on price (or another competitive aspect), look towards improving your customer service standards and give your customers something to rave about you.

Reduce Loss of Customers – Quite often it isn’t price or quality, but the way a customer is treated that keeps them happy (see above). With that in mind understanding how satisfied a customer is with your service is a great way to check your approach and try new things. Always aim to exceed the expectations of your customers, as it will ensure that you reduce the number of customers who leave to try a competitor.

Build a Legacy of Customers – Improving your customer satisfaction levels will lead to a better likelihood of customers staying with you for a long period of time. It is with confidence that it can also be stated that those customers who are completely satisfied with your service, are more likely to buy with you (and at greater numbers and regularity) than those who are merely satisfied. Improving customer service standards helps to build a real legacy of customer service that will entice new custom and retain legacy clients for a long period of time.

Improving customer service standards and satisfaction levels helps to reduce negative comments made about your company, whilst it is always more cost effective to retain clients through high standard of customer service, than find new clients through marketing endeavours.

Guest post by Mike Taylor.