Customers Satisfactions

Customers Satisfactions
Customer satisfaction is defined as a measurement that determines how happy customers are with a company's products, services, and capabilities
Benefits of Customer Satisfaction
1. Customer satisfaction helps you understand where you excel.
By tracking and measuring customer satisfaction, you can understand what your business does well, and thus continue doing it. But you can’t find out unless you carry out customer satisfaction surveys.
Growing companies prioritize customer success, and an essential way to identify satisfied customers is through customer feedback.
Results will let you know who these customers are and what you’re doing that’s leaving them satisfied with their experiences with your brand. When you have this information, you can continue doing the things they like in the hopes of inspiring customer retention, and you’ll reap the following benefits:
It’s cheaper to retain an existing customer than it is to acquire a new one.
Repeat, loyal customers spend more.
Satisfied customers engage in word-of-mouth marketing, helping you with free acquisition.
2. Customer satisfaction helps you understand where you can improve.
Where do you fall short? The gaps in customer satisfaction can help you find out where you can improve in your customer service strategy.
If you don’t understand why your customers are unhappy, you can’t make changes to your product or services that make them happy and align with the experiences they desire.
Ensure you’re sending out customer satisfaction surveys, analyzing the results, and acting on negative customer feedback. This is especially important if the feedback is tough to hear, as it will help you ensure that you take steps to prevent customer churn, negative reviews on your product pages or social media, or negative word-of-mouth reviews to family and friends.
3. Customer satisfaction leads to higher customer loyalty and advocacy.
If your business has positive customer satisfaction, then you have customers who are loyal to your brand. These customers will refer new leads to your company and generate more testimonials for your marketing team. You can create customer advocacy programs for these users and encourage them to advertise on your business’s behalf.
Customer advocacy programs reward customers for referring your business to potential leads. Customers are given incentives to join the program, then receive gifts or offers in exchange for reviews and testimonials. This creates a mutually beneficial relationship that rewards your best customers and keeps them loyal.
4. Customer satisfaction increases customer retention and reduces churn.
It should be no surprise that the happier your customers are, the better your customer retention will be. After all, happy customers won't have much reason to turn to competitors, so long as you keep them satisfied. On the other hand, unhappy customers will have plenty of reasons to churn, and it'll be up to your team to convince them otherwise.
By measuring CSAT, you can look at individual customer needs and create personalized offers for users who are likely to churn. Since 32% of customers would stop doing business with a brand they loved after one bad experience, you may only get one opportunity to stop someone from churning. Customer satisfaction optimizes your chances by providing you with relevant information about the customer's experience with your brand.
5. Customer satisfaction leads to a longer customer lifetime value.
Customer lifetime value (CLTV) refers to the expected profit you can make from a single customer for as long as they stay with your business.
If a customer is unhappy with your products and services, they’ll likely never return to your business after that initial purchase. That customer’s lifetime value is low, so you’d miss potential revenue opportunities.
If your customers are satisfied, however, they’ll likely stay with your business for a longer time, making repeat purchases and leading to a boost in profits.
It’s clear that customer satisfaction is important for improving service metrics and ensuring your company is delivering the best experience possible. But how does it impact other teams?