Customer Satisfaction: A Top Priority
Excellent customer experience is always a very important aspect of every business. It doesn’t matter if the business is into manufacturing, selling, distributing, or providing services. Customer satisfaction should always be a top priority.
Old vs. New Customers
As noted in this infographic, retaining customers requires less cost for businesses rather than trying to attract new customers. Thinking about it, this actually makes a lot of sense.
Retaining old customers is beneficial because once they build a relationship with a brand, product or service; they tend to spend more than those who are just trying it for the first time. On the other hand, convincing a new customer to try a product or service may require that they see catchy advertisements, receive free-trial, or get discounts. These things entail cost to the business. Take a television ad, for example. An article by Nancy Wagner estimates that the production cost alone can amount to hundreds or even thousands of dollars. How much more when they are already being shown in local or national television? The prices could actually double or even triple, depending on its spot on TV! And after incurring these costs, it is still not a guarantee that you’ve made a believer out of these new customers.
Small businesses, especially those that are still starting, might not have the budget for above-the-line type of advertisement. For this reason, they would want the quality of their product or service to speak for itself. This means customer satisfaction would have to be a priority in order to retain loyal customers, and hopefully, attract new ones through a different kind of promotion called the “word-of-mouth”. This below-the-line form of advertisement is very effective for small businesses because it does not cost anything but can yield great results.
In politics and in the entertainment industry, it is sometimes said that bad publicity is still publicity. However, this does not hold true for businesses, especially for small start-up ones. If people perceive a business to be unprofessional or fraudulent, this could have a bad effect in the company’s image. This is something to be strongly avoided since a company’s image is hard to preserve but very difficult and costly to repair.
Loyal Customers as Potential Investors or Stock holders
Loyal customers do not always stay just customers. If they really believe in the business, they might also become potential investors or stock holders. People often equate competency and accuracy to stability. Stability is always vital to people’s choice on where they would like to put their money. Therefore, businesses should always show stability and transparency in order for them to be a top of mind choice when it comes to investments.
In summary, the best reward a business can give to its loyal customer is to give them a repeatable excellent customer experience that does not just meet their expectation. Always aim to blow them away so that in the end, the business will reap a fitting reward.