Conducting An Effective Customer Satisfaction Program
Customer satisfaction is one of the most important goals of any business because it affects how people view the company and influences whether they keep coming back. When customers are happy, they show off their loyalty by referring your company to friends, family, and coworkers. To find out how you can set up a customer satisfaction program for your company, read on!
How often do you think about customer satisfaction? If you’re like most entrepreneurs and small business owners, probably not often enough. Customer satisfaction is one of the most important goals of any business because it affects how people view the company and influences whether they keep coming back. When customers are happy, they show off their loyalty by referring your company to friends, family, and coworkers. To find out how you can set up a customer satisfaction program for your company, read on!
The Importance of Customer Satisfaction
Much has been written about the importance of customer satisfaction to businesses – from Forbes to Business Insider , there’s no shortage of statistics and data to back up the claims that satisfied customers are crucial to the success of a company. Here are some facts that drive home this point:
Persistent shoppers are loyal shoppers. Recently, researchers surveyed over 1,300 customers of a record store chain to examine how they become loyal supporters. For every dollar spent with the company, the customers were offered an additional 49 cents in monthly discounts, but there was a catch: the discounts were only available for 6 months. The majority of customers who purchased the extended subscription plan kept their subscriptions for at least six months.
Out of 3,000 customers surveyed across three time periods (12-month history, 6-month history and 12-month history), 67% survived at least 6 months and are now part of the company's loyal customer base.
Persistent customers are highly profitable. A study by the Chartered Institute of Marketing revealed that a single customer can bring a company up to £36 during their lifetime. The reason is that 33% of what businesses grow will be due to existing customers. The problem is, only 67% of customers in the study remained loyal to their favorite brand. So whether you have ten or ten thousand customers, working on retaining your current customers produces more profit than focusing on acquiring new ones.
Persistent customers are likely to be brand leaders. A survey conducted by OpinionLab showed that 91% of consumers believe it is important for companies to have loyal customers. Among them, 83% said they would willingly spend more with companies whose products and services are backed by loyal customers.
Customer Satisfaction: Confusion, How to Fix it
When it comes to understanding customer satisfaction, it's important to note that it's not easy to measure. Even though many companies use a variety of different tools and data sources, the one thing they have in common is the term "satisfied customers".
1. Customers' Acceptance of Terms and Conditions
The primary reason why businesses fall short of satisfying customers is because they fail to realize that the customer base is not their only problem. It's also their fault for failing to communicate clearly before selling a product or service. One way of identifying these problems is by performing market research on what menus are most effective in growing your business.
So, how can you provide the best possible customer service to your customers, without sacrificing the time and effort of your employees? Here are some effective ways to stay fresh on your customers' minds:
Offer insight into what exactly you do and why it's meaningful. You hear this a lot from companies like Zappos and Southwest Airlines , who deliver outstanding customer service because they take the time to really understand what makes their customers tick. It may seem daunting, but it will be worthwhile if having a satisfied customer means more profits for your business.
Run polls to find out how satisfied your customers are with your service and products. This can be a great way to gauge whether your efforts are paying off. Some companies use surveys that ask customers how satisfied they are with the service a particular product or service provided.
Use social media programs to reach out and interact with customers. If you're using Facebook , Twitter , or other social media sites, make sure you respond to feedback within 24 hours and acknowledge what people say in your blog posts. You don't have to be a local business owner to engage in social media marketing; quite the contrary, today's consumers want you to be on their minds at all times.
Make sure your business is offering products and services at competitive prices. If you cost too much, people aren't going to purchase from you. The same holds true for companies that offer the same service for next to nothing; consumers want to feel like their money is going toward something of value, and if it's not, they're going to look for a different brand. Put yourself in the buyer's shoes before creating a product or requesting a price quote on services.
2. Responsiveness
Amanda Palmer , who's now famous for being a musician, talks about how important responsiveness is to her rock-and-roll lifestyle in her book The Art of Asking . "Making art is all about asking," she writes. "Asking for help, asking for favors, asking questions, asking to be heard – and the show is no different. It's an exercise in helping each other reach a goal together."
The same holds true for small businesses and even big businesses. Businesses that ask for their customers' opinions tend to have more satisfied customers because they're letting people know that their opinions are important to the business.
3. Ease of Use
Businesses with mobile apps that respond to user needs can mobile app development attracts more satisfied customers because it puts convenience in the hands of consumers whenever they want it. This can only lead your company to bigger and better opportunities.
4. Professionalism
Be sure to provide a great experience for customers. Think about how your staff can make your customers feel welcome, and the trust that you build in those relationships will no doubt lead to a higher percentage of satisfied customers. Once they're satisfied, they'll tell their friends, their friends will tell their friends, and on and on. Businesses that have a highly effective customer service department obviously have happier employees who can better retain and satisfy their clients.
5. Word of Mouth
Word of mouth is still one of the most effective methods of marketing around and it can really help businesses stand out from the competition - especially since many people rely on recommendations from family or friends to make buying decisions .
6. Transparency
Transparency is a big deal when it comes to satisfying customers, and it isn't a skill that any organization has naturally. It's a skill that you have to work on continuously, but the rewards of doing so will lead to the satisfaction of your customers and your own team at the same time. Transparency involves being honest with people and not hiding information or your opinion behind closed doors. It also means being honest about mistakes and thanking people for their input on how you can improve. Transparency goes a long way toward building relationships between your clients and your business - relationships that lead to loyal customers who appreciate how easily you can be reached when they need help with something.
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Conclusion
If a satisfied customer isn't the most important part of your business, you need to reassess where you're putting your focus. Even though satisfying customers is difficult, it's not impossible with the right balance of technologies and professionals on your side. In order to have a satisfied customer base, you first have to understand what satisfies them, then determine which tactics are most beneficial for your business. Keep looking for new ways to keep customers happy and enjoy repeat business!
Getting Customers
As a small business owner , you've got a lot on your plate - and staying on top of the latest trends can be one of the biggest challenges .