Does a higher customer satisfaction influence sales?

There are always inquiries about the relation of customer satisfaction and sales or profitability. A lot of studies have confirmed that yes, customer satisfaction does influence sales. Though I must also say that it is not the be-all and end-all. There are a lot of things to consider for a business to increase its sales and profitability. But having satisfied customers is one of those and it is definitely a step in the right direction.

According to a research, 58% of consumers are willing to spend more on companies that provide excellent customer service. Definitely, nobody wants to experience a bad service. Companies of today are making sure that they are meeting expectations and that their customers are satisfied. Customers become more invested in a company when it prioritizes customer well-being and satisfaction above everything. They want to feel special and they want personalized service from companies.

A lot of companies and businesses are using customer feedback app to measure customer satisfaction.To be competitive nowadays, a company needs to understand how customers accept and interact with their brand and business. Here are some reasons why customer satisfaction can really influence sales:

Develops Loyalty

A satisfied customer can develop as a loyal customer. Loyal customers are those who purchases from your business repeatedly. They are those who will be loyal to your business even if competitors offer a cheaper price for their product. Loyal customers are also the best referrers. Studies have shown that loyal customers are 26% to 54% more likely to refer a company to others. They are not only loyal by making repeat purchases, but also by making your company have new customers as well.

Reduces Churn

To reduce customer churn, customer satisfaction is the metric that can be used. By measuring customer satisfaction, a company can adjust and adapt new practices to improve the customer experience and overall customer service. It is proven that the price of a product is not the main reason for customer churn. Poor quality of customer service is the main culprit.

Cost-effectiveness

Acquiring new customers cost a lot of money. Thousands are being spent on finding and developing new prospects or customers. New customer acquisition can cost seven times more than retaining existing customers. A company or business with great customer satisfaction improves their customer retention as well.

Sets Differentiation

In the competitive business world, one of the key differentiators is customer satisfaction or a great customer service. Successful companies and businesses are those who makes their customers satisfied consistently. Plenty of satisfied customers attracts more customers. An excellent customer satisfaction rating will give companies the edge and advantage that they need to survive and grow.

Customer satisfaction is very important for businesses and companies. It does not only influence or affect sales and profitability, it develops a better company as a whole. Remember that customer satisfaction can lead to employee satisfaction and company satisfaction.