Best Ways to Impact Customer Satisfaction

When thinking about organizational profitability, it’s hard not to consider the customer. If you don’t have customers, you don’t have profit. It’s as simple as that. But what are the best ways to ensure your customers are satisfied? To answer this question, let’s first have a look at how customer satisfaction can impact your business.

There are numerous studies relating to customer satisfaction and profitability. One study by Growth Strategies International looked at customer satisfaction data from 20,000 customer surveys in 40 countries and concluded the following:

  • A totally satisfied customer contributes 2.6 times as much revenue to a company as a somewhat satisfied customer.
  • A totally satisfied customer contributes 17 times as much revenue as a somewhat dissatisfied customer.
  • On the flip side, a totally dissatisfied customer decreases revenue at a rate equal to 1.8 times what a totally satisfied customer contributes to a business.

In relation to customer satisfaction on repeat purchases, loyalty and retention, a study in 2000 by Zairi concluded the following:

  • Satisfied customers are most likely to share their experiences with other people to the order of perhaps five or six people. But dissatisfied customers are more likely to tell another 10 people about their poor experience.
  • Many customers will not complain and this will differ from one industry sector to another.
  • If people believe that dealing with customer satisfaction/complaints is costly, they need to realize that it costs as much as 25 percent more to recruit new customers.

Perhaps the results of these studies are not surprising, but what it boils down to is that organizations are far better off creating totally satisfied customers than looking for new customers as well as ensuring that they do not have dissatisfied customers. In my opinion, creating totally satisfied customers is a no-brainer, but in case you need a reminder, here are my five top tips on how to create totally satisfied customers:

  1. Treat your customers the same way that you would like to be treated. Always. All people want to be treated with fairness and respect. And remember that first impressions are lasting impressions.
  2. Train your staff to understand their role in your business and to treat your customers the same way that they would like to be treated. Staff must be helpful, courteous, and knowledgeable.
  3. Be accessible. Businesses that don’t answer their phones and have layers of telephone greetings and instructions are not helpful. Customers don’t want to talk to machines or have to wait for 45 minutes to talk to a live person.
  4. Listen to your customers and especially listen if they have complaints. Don’t dismiss complaints or presume they aren’t important. Always listen to and do something to resolve complaints. Promptly.
  5. Run an efficient and trustworthy operation. There is nothing worse than enduring aggravation or mind games while making a purchase or listening to a proposal for service. Minimize inconvenience for your customer, do not mislead with semi-truths or outright false promises.

That’s it. If you don’t remember these top five tips, then all you really have to remember is the first one – Treat your customers the same way that you would like to be treated. Success and profits will flow from that one gesture.