Why Customer Satisfaction Survey Is Important?
Customer satisfaction survey is important because it provides business owners with facts that they can use to manage and improve their businesses.
Top Reasons Why Customer Satisfaction Survey is Important
1. Consumer Repurchase Intentions
Asking customers to rate their satisfaction on a scale of 1-10 is a good way to see if they will become repeat customers or even advocates.
Rating of 7 and above is an indication that the customer is satisfied. You can expect them to come back and make repeat purchases. Rating of 9 or 10 is a strong indication that this customer will become your advocate. S/he will become evangelists for your company.
However ratings of 6 and below are warning signs that a customer is unhappy and at risk of leaving. You must take some action to follow them up so you can determine why their satisfaction is low. Then take corrective actions to regain their trust in your product or services.
Connected to the point above, satisfied customers spread good experiences to their connections. In this way their connections also become you clients.
Business environments in the UAE, and across the globe, are highly competitive. Each business competes for the same pool of customers. Customer satisfaction is seen as a key differentiator. Businesses it is seen, the businesses which succeed in this cut-throat environment are the ones that make customer satisfaction a key element of their business strategy.
Imagine, there are two businesses that offer the exact same product. What will make you choose one over the other?
If someone from your friends’ circle recommendation for one business would that sway your opinion? Probably. So how does that recommendation originally start? More than likely it’s on the back of a good customer experience. Businesses which offer amazing customer experiences create environments where satisfaction is high and customer advocates are plenty.
3. Reduced Customer Turn-Over
A survey conducted by Accenture in 2013, found that customers were increasingly frustrated with the level of services they experience: 91 percent respondents were frustrated that they had to contact a company multiple times for the same reason; 90 percent by being put on hold for a long time and 89 percent by having to repeat their issue to multiple representatives.
Customer satisfaction is the metric you can use to reduce customer turn-over. By measuring and tracking customer satisfaction you can put new processes in place to increase the overall quality of your customer service.
4. Increased Customer Lifetime Value
Customer lifetime value is a marketing term that predicts the net profit attributed to the entire future relationship with a customer. A study by InfoQuest found that ‘totally satisfied customer’ contributes 2.6 times more revenue than a ‘somewhat satisfied customer’. Furthermore, a ‘totally satisfied customer’ contributes 14 times more revenue than a ‘somewhat dissatisfied customer’.
Satisfaction plays a significant role in how much revenue a customer generates for your business.
5. Reduced Negative Word of Mouth
An unhappy customer tells between 9-15 people about their experience. How much will that affect your business and its reputation in your industry?
Customer satisfaction is tightly linked to revenue and repeat purchases. What often gets forgotten is how customer satisfaction negatively impacts your business. It’s one thing to lose a customer because they were unhappy. It’s another thing completely to lose 9-15 customers because of some bad word of mouth.
6. Cheaper to Retain Customers than Acquiring New Customers
It costs six to seven times more to acquire new customers than it does to retain existing customers. Customers cost a lot of money to acquire. You and your marketing team spend huge amounts of money, time and resources to get the attention of new clients, to nurture them into leads and close them into sales.
7. Satisfied Customers are Better for Your Sanity
Listening to what customers want means that you won’t be constantly at odds with your clients. Just like arguments in a relationship are emotionally draining, having grumpy customers constantly writing into a support team leads to burnout and a much unhappier work environment.