What is Customer Satisfaction and Why Does it Matter?

what-is-customer-satisfaction-and-why-does-it-matter

Customer satisfaction is a measurement that quantifies the degree to which a customer is contented with a product, service, or experience provided by a business. It measures how a customer feels about a brand interaction. This can be calculated by using a customer satisfaction survey app that examines your customer’s happiness. 

These days, firms place the utmost importance on their customer’s satisfaction. Recording, analyzing and working productively to increase their customer satisfaction helps them retain old customers and acquire new ones. Businesses conduct reviews on customer satisfaction survey software to evaluate whether customer expectation, business model and execution align. Prioritizing your customer’s needs is healthy for a successful expansion of the business. By gauging customer happiness, a business can find areas that need improvement and work on them. According to a survey, around 70% of growing businesses rate customer success as “very important.”

Below we have mentioned why it’s important to maintain and increase your customer satisfaction.

It Indicates Customer Repurchase and Loyalty


Customer satisfaction indicates how likely a client will make a purchase in the future. Businesses ask customers to rate their happiness on the customer satisfaction app. This helps to gauge if a consumer will repeat purchase. Customers who are extremely satisfied, become advocates and remain loyal to your business. Those who do not review with a good rating are warning signs that they are unhappy and at risk of leaving. These customers need to be given special attention so you can determine why their satisfaction is low. Calculating satisfaction provides so much insight into your customers, that’s why it’s one of the leading metrics businesses use to measure consumer repurchase and loyalty.

It Reduces Customer Churn


A global customer satisfaction report found that extortionate price is not the main reason for customer churn, instead, it is due to the overall poor quality of customer service. Client’s happiness is the metric you can use to reduce customer churn. By measuring and tracking it on customer satisfaction survey software you can work towards increasing the overall quality of your product and service. Businesses should try to emphasize on exceeding client expectations and impressing them at every opportunity.

It Reduces Negative Vocal Chatter of Your Business


Surveys report that an unhappy consumer tells people about their experience. In fact, 13% of unhappy consumers tell over 20 people about their experience. This increases a negative spread reputation which affects the overall brand’s presence in the market. Customer satisfaction is proportionate to revenue, repeat purchases, and loyalty. It’s one thing to lose a consumer because they were unhappy. It’s another thing to not acquire new ones because of negative word of mouth. To eliminate the bad reputation you need to measure the level of satisfaction in your customers regularly. This will help you identify faults in your execution and improve those departments.

It Helps Improve Customer Service to Retain Customers


With immense competition, it is easy for customers to switch brands. It is often caused by lousy customer service. It is unacceptable for clients to wait for months to get feedback or comment from a brand. And gaining their trust takes up to 12 positive experiences to make up for an unresolved negative experience. Your customers require attention when needed. Ask questions, offer support, send personalized messages or emails, use customer satisfaction survey software that will help you communicate with your customers. Give them what they need and they will reward you with loyalty.

It’s Cheaper to Retain Customers Than Acquire New Ones


This is probably the most important reason to improve customer satisfaction. It costs six to seven times more to acquire new customers than it does to retain existing ones. These statistics strike an accord with businesses to identify the importance of customer satisfaction. Customers are expensive to acquire. The marketing department spends a lot of money getting the attention of prospects, turning them into leads and closing them into sales. Whereas to retain customers you need to keep them satisfied and not work on them from scratch.

Conclusion

piHappiness provides a customer-centric approach that creates meaningful and memorable feedback from customers. It helps the firms to deliver their customer’s requirements. We have helped refine the service standards of companies for better customer satisfaction.

Get in touch with our experts to increase your brand’s presence and obtain other benefits by getting feedback from your customers. Insightful reports can guide product and service development to focus your resources on what customers really want from you as a service provider. We help in collecting data to identify and eliminate problems.