A cursory glance through any social media feed, but particularly LinkedIn (followed us on there, yet?) will show you that the optimum way of creating success is customer satisfaction. The old maxim “the customer is always right” may not feature on store displays in 2019, but it is a mantra worth following.
THE CUSTOMER IS ALWAYS RIGHT
is a motto that gives high priority to satisfaction, and is in fact a rebuttal of “caveat emptor”. It’s an exhortation to staff who work for your business that customer satisfaction is the number one priority. It takes months and years to develop a good reputation and days to destroy it. It’s a maxim coined by Harry Gordon Selfridge. He was the Victorian founder of that upmarket store, Selfridges. But what does it mean in practice? How can ups apply this philosophy to your business?
What exactly does this term mean?
Customer satisfaction (often abbreviated as CSAT, more correctly CSat) is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as “the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goal.
In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.
WHY IS IT IMPORTANT?
As a list, you may want to take note:
- It identifies unsatisfied customers. You cannot, for example, improve customer satisfaction if you don’t know what customers see as negatives. You need to encourage customers to leave feedback. Carry these out internally via email campaigns, SMS threads (as mobile networks often do) to gauge happiness and act upon it. This will prevent a disgruntled customer venting to friends or, worse, online in social media and Google reviews.
- It identifies satisfied customers. If you don’t know who unsatisfied customers are, do you know who is happy? There’s a logical reason too to find out who is satisfied. For instance, it is statistically proven that happy customers come back. They become brand ambassadors. They spend more in your business true. Happy customers keep the tills ringing. It’s cheaper too to retain customers than acquire new ones. Apple and its locked ecosystem are a global example of that.P
- Product updates. Customer surveys, emailed feedback, social media commentary can lead your business to improve products and services. Take Sonos as an example, a leading audio manufacturer. Sonos struck gold with its Sonos Play 1 speaker some time ago. It then updated it to voice activated and reincarnated it as a Play One (number to word) and has just this week introduced a Sonos One SL. This product is to replace the original 1, but customers told the company, we read, that they didn’t think that buying two Ones to create stereo output was necessary. The new SL pairs with the One, but is £20 cheaper for not having voice activated microphones.
THE CUSTOMER IS KING
- Leads to increased sales. If your customer satisfaction indices are high, your sales teams can use this in communication. For example in phone calls, emails or social media selling. If your customers love what you do, your marketing teams need to use this in sales pitches. Common sense, isn’t it?
- Attracts new leads. This is not apocryphal but is from a leading business survey. 71% of buyers will be moved to Action if they see customer endorsement. Would you choose a Chinese restaurant with 1031 Google reviews in Manchester or the one with no reviews? You should devote time, money and energy in trawling for customer reviews as they will grow your business. Did you know too that 55% of customers will spend more money on an experience, a product or service that is guaranteed as good?
APPLYING THESE PRINCIPLES DAILY
Good businesses place customers at their heart. Not all customers will be happy, of course. But your job as a start up or established company is to encourage people to give positive feedback. If their experience is negative, you should resolve this so it doesn’t end up online to thousands of their followers.
You need to engender brand loyalty. It’s not an easy process but with the right, dare we say, mission statement, that is not just words, you will accelerate your brand advocates, who will tell others how good you are.
Richard Branson goes a step further and says happy customers are created by happy employees. The quote from him regularly features online so we won’t repeat it. Are your employees happy? Does this happiness transmit itself to paying customers?
HOW PDQ FUNDING CAN HELP
Customer satisfaction should be top of your business planning list. Empty words on a spreadsheet are no good. Enact and show excellent customer service on daily basis. This will, for instance, retain loyal customers and attract new ones.
With the right approach to people – your team and your team of customers – your business will grow.
Does your business need a straightforward, affordable business loan alternative?
Our business cash advances are a fast and flexible way to raise between £5,000 and £200,000 in capital, for your business today. Repayments are based on your card sales, which means you only pay us back when you sell to your customers.
Lastly, if you’d like to know more about how we can help your business improve and expand, call us today on 01268 233108.