customer experience

The importance of customer satisfaction for business

Photo of Mikayla Fuller
by   Mikayla Fuller
June 22, 2022

We are living in a new era. The transformation of commerce over the years has gone from prioritizing products and services to putting emphasis on the consumer; a trend we predict will remain for quite some time. Customers are the centerpiece of your business and all marketing efforts. Every business should not only reach for a high level of customer satisfaction but should always be actively pursuing it through various support operations.

Most businesses do strive for customer satisfaction, but the problem is that their understanding of what makes a satisfied customer is vague and their goals lack intention. There are a few ways you can analyze your customer satisfaction and determine the success of your CX critical care plan, but before that, let’s get a firm grasp of what exactly customer satisfaction is.

What is customer satisfaction?

In simple terms, customer satisfaction is a measurement that determines how well a company’s products or services meet customer expectations. It includes making a human-to-human connection at every touchpoint with the customer, going above and beyond to provide solutions, and proactively reaching out. When we say every touchpoint, we don’t mean that lightly.

61% of consumers switch to a competitor after just one poor customer service experience. (Zendesk, 20220)

To say that customer satisfaction is important is an understatement. Customer satisfaction is a necessity. Most of the time, customers purchase with preexisting expectations regarding what they will receive from you. Maybe they saw one of your marketing campaigns and ended up giving your product a try. If you made promises to them or were even slightly disingenuous about your deliverables, your customers will be disappointed. You may also lose them forever.

A large part of customer satisfaction is being honest, real, and genuine with your customers. The integrity of your business will bleed through into your employees, the quality of your services, and the way your buyers perceive your brand.

The key word in our definition of customer satisfaction is ‘measurement.’ It may come as a surprise to you that customer satisfaction can be measured, but you can and should take a data-driven approach to your customer satisfaction strategy.

How to measure customer satisfaction

Having a bunch of customers is not going to cut it when determining their contentment with your brand. We have to dig a little deeper than that. One of the best ways to determine this is by calculating your customer satisfaction score (CSAT). It’s a commonly used metric that acts as a KPI for customer service and product quality. Your score will be a percentage—0% being horrible and 100% being wonderful—and is always determined by feedback.

Creating a customer survey follow-up email after buyers shop your products is one of the simplest approaches. You can do this by setting up a campaign segment so your customers receive an automatic email upon receiving the product. Automatic email surveys are low-hanging fruit that helps to reveal your CSAT and give you valuable insights into what your customers really think about your services.

Some customers may not be signed up for your newsletter. Maybe you don’t have one yet, or maybe they purchased the product in-store or through a third party. Ideally, an omnichannel marketing strategy yields the most success, but whatever platform your brand is on, customers will most likely share their thoughts. This could be through social media comments, support chats, or review systems such as your Google Business Profile or Yelp.

Customers are 2 to 3 times more likely to write an angry review than customers who had a great experience are to post a happy review. (Online Reputation Management)

Striving to give each customer an experience so profoundly positive that they feel compelled to share their interaction with your business should be a goal for customer satisfaction.

The main point here is that customer satisfaction is determined by feedback, and customers will share their opinions wherever they have a voice. They also won’t lie to you. A large part of building a customer satisfaction strategy is giving your audience the opportunity to share their voice, and then fully listening to them when they do so. The benefits of simply listening to your customer can propel your organization towards growth. Besides listening to your customers, which is vital, let’s discuss a few other ways you can encourage customer happiness.

How to improve customer satisfaction

There are two important questions to ask when you establish customer support: who is your customer base? And what do you need to do to satisfy them? Here are a few techniques to begin implementing in your customer relations journey, if you aren’t already.

1. Segment your customers

This can be done in many different ways, whether you do so demographically, geographically, or behaviorally, to name a few. The value of learning more about your customer base allows you to tailor your content to fit their specific needs. It further emphasizes that you are listening and taking action. Segmenting ensures that you effectively reach your audience and helps to boost your conversions.

2. Be genuine

If your company makes a mistake, own it. Tell your honest story and stay true to your company’s mission. Hire employees who are authentic and prioritize a transparent-centric work culture.

3. Build credibility

You can accomplish this with case studies, testimonials, or influencer/guest blog features from people who genuinely enjoy supporting your business.

4. Bring value wherever possible.

When customers typically evaluate your services, they perceive the value compared to the price. However, many customers are willing to spend more for product attributes, support of your brand’s mission, convenience, and overall quality. In fact, 67% of buyers are willing to pay more to get a better customer service experience. (Sales Force) How can you make the buying process better?

5. Prioritize connecting with your current customers.

Focusing too much on gaining new customers can leave gaps in relationships with preexisting customers. An increase in customer retention of merely 5% can equate to an increase in profit of 25%. (Bain & Company) Spending less on operating costs increases your success and your customer’s happiness. It’s a win-win.

Our top 7 reasons why customer satisfaction is important

1. Customer satisfaction drives customer loyalty and business growth

High-quality products and systematic support services that are designed to meet customer needs will create high levels of customer satisfaction. This increases customer loyalty and is the single most important driver of long-term financial performance.

2. Customer satisfaction improves churn rate

U.S companies lose $138.6 billion per year due to avoidable consumer switching. (CallMiner) If customers are unhappy, they leave. It’s as simple as that.

3. Customer satisfaction helps you stand out

There are a handful of businesses that are known for being over-the-top with their empathy to customers. Take Chick-fil-a’s ‘my pleasure’ as an example. The phrase itself is so effortless, yet, has completely elevated their verbiage in a way that makes the customer feel appreciated. You don’t have to reinvent the wheel, but something as small as a trademark phrase can elevate any business.

4. Customer satisfaction attracts new customers

93% of customers say that online reviews influence their purchase decision. (Qualtrics) Honest testimonials speak for themselves and create a community of individuals who believe so strongly in your company that they feel the need to share it with the world.

5. Customer satisfaction represents your brand’s mission, values, and image

You don’t want to be known as a business with horrendous customer service. Nowadays, the chances of going viral for a negative situation can severely impact your reputation that can sometimes never be recovered. Working with an experienced and trained support team assists in keeping your image golden.

6. Customer satisfaction is cost-effective to retain customers

There is a 60-70% chance of selling to an existing customer. (Finances Online) Prioritizing existing relationships with your customers cuts down on operating costs and increases overall customer happiness, driving you further towards growth.

7. Customer satisfaction grows customer lifetime value (CLV)

The longer your customer stays with you, the more profit they bring. This assists with maximizing your ROI since you don’t need to spend additional money on customer acquisition to drive sales.

Improve customer satisfaction with Influx

Increasing your customer satisfaction is a long game that requires patience to establish trust between your customers and your brand. Outsourcing support solutions to a 24/7 team of trained professionals with expertise in all things related to CX ensures that your customer satisfaction increases in staggering amounts. Get a quote today!

About the author

Photo of Mikayla Fuller

Mikayla Fuller

Mikayla is an avid copywriter. If she’s not out on an adventure, you can find her somewhere with a book in hand.