Customer satisfaction is the fulfillment that a customer attains from carrying out a transaction with an organization. The measure of satisfaction automatically translates to a customer’s consumption behaviors. The degree of customer satisfaction and consumption is dependent on whether their expectations have been met or exceeded by the service provider.
Customer satisfaction has been proven to translate to customer loyalty easily. When a customer’s expectations are met or even exceeded, they become loyal to the product or service. There is a higher probability that a satisfied customer will probably refer the product or service to other potential customers. A customer’s satisfactory experience makes it easier for them to carry out future transactions. A customer’s perception towards a particular product or service is crucial to the providers because, in every business, the customer is king.
Contributing Factors to Customer Satisfaction
The service providers contribute to a customer’s loyalty level through various means and strategies they set forth. Also, a customer’s satisfaction can be dependent on their personality, which is independent of the product or service offered. The following as some of the factors that contribute to customer satisfaction;
1. Mode of communication- the channel of communication is the key to reach the desired target market. A communication channel that is easily accessible and with information that can easily be understood.
2. Proposed value of the product/service – the value of a product or service such as the quality, efficiency, price, and benefits are a major contributor to consumption decisions.
3. Product /service’s ease of access contribute to a customer’s decision whether to consume or not. Customers tend to measure the value of time used to obtain a product or service.
4. Customer’s emotions may affect their ability to use a particular product/service. Positive emotions may trigger the right perceptions to consume, and a bad mood may negatively affect their decisions too.
5. Products/ service perceived success and failures – a customer’s perception of the success or failure of a product/ service may affect their consumption behavior. The decision may arise from the current or past experience.
6. Products/ service referrals – customers tend to trust the feedback of products/services from their friends, family members, and other consumers. The referrals work magic in influencing a potential customer to consume.
Importance of Customer Satisfaction
In the world of business, the term customer satisfaction is fundamental. Any organization / company offering a product/service understands the importance of satisfying their clients. The customer is at the center of all they do, their intentions is to deliver up to their customers’ expectations or even exceed those expectations. The following are the importance of customer satisfaction;
1. Customer satisfaction tends to translate to customer loyalty which, means that there is potential for continued use of that product /service.
2. Customer satisfaction performs magic when it rolls down to competition in the market place. Service providers in a given niche seek to deliver and meet the customer’s expectations or even exceed them.
3. Increase in consumption of the product or service due to the numerous customers, which equals to leveraging the market.
4. High levels of customer satisfaction indirectly lower the cost of marketing. Satisfied customers promote the products/service through word of mouth to other potential consumers.
5. The continued increase of cash flow from the loyal customers, potential clients who have been referred, the success/ efficiency of the product or service and the market leverage.
6. Lead to increased growth of a product/service since the provider will constantly find means of improving so as to sustain the existing clientele.
7. Ease of market entry when launching a new product/service. Current satisfied will want to test the new product/service due to their previous experience.
In conclusion ,customer satisfaction remains a fundamental concept in any organization since the customer is king. Customer satisfaction is the core of any business. Satisfied clients translate to business success and potential future growth and expansion.