According to Michael Gerber, author of The E-Myth, “ . . . the customer you’ve got is a lot less expensive to sell to than the one you don’t have yet.” It’s a no brainer – satisfied customers lead to loyal customers which means more business. Boom. End of article. But businesses and the people that run them are all inherently different. Therefore, customer satisfaction is important to each business differently.
Have you determined the customer satisfaction rate for your business and how it has impacted it? If not, here are reasons why you should.
REASON #1 Customer satisfaction maximizes your marketing budget, by optimizing it
All businesses spend tons of money marketing their products and services to win new customers every day. From small “Mom and Pop” restaurants to large technology corporations. But if your customer satisfaction level is low, those customers may not return. However, as mentioned in the opening of this article the more satisfied your customers are with your products and services the more likely they will return again and refer others as well. When that happens, your marketing dollar is now stretched and optimized producing incremental business. Determining how satisfied your customers are may potentially lead to more business without actually spending more on marketing but rather making a concerted effort to keep the customers you have already originated because of it.
REASON #2 Customer satisfaction is your point of differentiation
Free market enterprise exists to produce competition in a variety of ways. So in essence, there are always options for customers to select which business they purchase from for their needs. Customer satisfaction, like anything else, quite often is the reason people select one business over another.
Take Apple for example. Apple, especially under the direction of Steve Jobs and his successor Tim Cook, has always aimed to create high-quality products and experiences with them. And as such they have a large fan base of product champions that continually grows each year. For years, Apple placed a premium on meeting and exceeding expectations of their customers that has led them to surpass technology giants like Microsoft and become the largest technology company in the world.
REASON #3 Customer satisfaction shores up operational issues and inefficiencies
Let me ask you a question – if you discovered that your customer satisfaction rate with your business was lower than expected, what would you do? Wouldn’t you look at doing business differently?
Change can often be a frightening word to people and especially those in business. But in this case, change can be a tremendous benefit. Your discovery leads to an opportunity to change operationally the things that are inefficient. New processes. New projects. And a tremendous chance to improve the overall quality of your products, services, and the rate of satisfaction your customers have for them.
REASON #4 Customer satisfaction spurs new ideas
Similar to the above bullet, knowing your customer satisfaction rate and its impact can lead to ideas that are with the customer in mind first and foremost. Apple is tremendous at this. They are quite keyed into making their products appealing, hip, fun, user friendly and simple. Customer satisfaction is at the core of what they do, and they’re notorious for not inventing new gadgets but reinventing ones already adopted and making them exponentially better. MP3 players existed before the iPod, but the iPod transformed the digital music industry. The iPhone? Same story. Apple makes the most popular personal technology products because their products are so engaging, and so customer-centric that their fans have no reason to buy such items from the competition.
REASON #5 Customer satisfaction and employee satisfaction are interwoven
When you work for a company that puts people at the center of its purpose, inevitably satisfaction levels remain high. Customers ultimately buy the feelings the products and services provide them. And employees perform with passion when they feel validated, challenged and involved. It’s a natural yin and yang.
Employees treated fairly and with a stakeholder mindset build better products and services. The customers that buy those products ultimately feel happy and satisfied about their decision to buy. And those same customers are more likely to do it again and share their experience with others. The positive mojo transfers from employees to customers and back again.