5 Customer Satisfaction Myths
Many business owners believe that a strong following of happy customers guarantees business success. They simply suppose that such customers would spend a lot of money buying from them.
However, happy customers are not always loyal customers. You’ll be surprised to hear that there’s little link between customers’ satisfaction scores and their real buying pattern.
But why aren’t satisfied consumers more likely to become repeat customers? Well, put simply, because contentment is a reflection of what people say, whereas loyalty is a reflection of what they do. And the two don’t always match.
Many managers are still unaware of this distinction, so they use the terms customer satisfaction and customer loyalty interchangeably as if they had the same meaning.
So, without further ado, let’s take a better look at this issue and debunk some customer satisfaction myths by analyzing common customer satisfaction examples.
Why Is Customer Satisfaction Important?
Customer satisfaction measures how successfully you, as a product or service provider, meet your customers’ requirements and expectations. This rule applies to all interactions before, during, and after the sale.
In one of our previous articles, we’ve already explained what customer satisfaction is. But still, many business owners fail to see why customer satisfaction is important.
Here are some of the most essential reasons for measuring customer satisfaction, backed by customer satisfaction data and collected by numerous companies:
- First of all, investing in retaining a customer is cheaper than getting new customers. People who buy from you are more likely to buy from you again if you focus on customer satisfaction.
- This raises the customer’s lifetime value, which is the total amount they spend with your business over their lifetime. When clients return to purchase from you again and again, your return on investment from their customer acquisition cost automatically increases.
- Moreover, you’ll minimize customer churn. Customer churn can be extremely costly to your business because it forces you to refocus your efforts on acquiring new consumers. On the other hand, a satisfied client is more likely to stay loyal, resulting in lower customer churn.
5 Customer Satisfaction Myths to Think About
Now let’s go through some of the most common customer satisfaction myths you should know. Knowing the difference between a myth and the truth will help you really increase customer satisfaction and loyalty in the long run.
1. Satisfaction = loyalty
First of all, you should know that satisfied customers don’t necessarily buy more. They may like you and your products now, but that may not be the case when the time comes for them to replace or update the product or service they’re using.
The Customer Service Statistics show that the improvement in customer service during a decrease in sales is often attributed to employees having additional time to provide personalized attention to customers.
So, when prices drop (for whatever cause), they’re happier, but they’re less likely to buy more or again, especially when prices return to normal.
Furthermore, it’s a mistake to link customer satisfaction directly to loyalty. Though delighted customers are often loyal, there are numerous additional reasons for their loyalty. Values, brand, product, and the customer’s sentiments of involvement with the brand are just a few of them.
2. Complaints = dissatisfaction
One of the advantages of doing a customer satisfaction survey is that you get to hear what your consumers genuinely think about your company and products, which may include complaints. But don’t suppose that complaints only mean dissatisfaction.
Listening to customer complaints and gaining information from them is a great way to figure out what you can improve. This can help you improve your products and procedures, which results in a better overall experience for your customers.
Measuring client complaints also provides you with a customer satisfaction benchmark against which you can compare how those issues are handled internally. The statistics can help you improve the overall performance of your customer support team.
Pro tip: Consider using a form builder to build online forms that collect accurate complaint information. This will help you draw valuable insights of the parts of your business where you need to focus.
3. Satisfaction vs. emotion
Even though customers are eager to spend extra money on excellent experiences, brands mustn’t be fooled into believing that satisfaction is a positive thing per se. Rather, satisfaction is defined as the lack of negative emotion; the consumer is satisfied if the customer experience delivers exactly what they expected and nothing more or less.
Of course, this is preferable to be disappointed, but it isn’t enough to keep a consumer coming back, especially when the competition knows they can gain an advantage by providing better experiences rather than lower pricing.
Satisfaction serves as a fulcrum for both good and negative emotions, so without an emotional connection, customer satisfaction is meaningless.
4. Technology is necessary
The organization’s internal technology is used to manufacture goods and services. However, promoting technology superior to that used by competitors is hardly a differentiator.
Rather than advertising the technology used to create consumer loyalty, the focus of technology investment should be providing superior goods and services… only.
Furthermore, the technology used to communicate with customers should be carefully selected to help with more accessible and better customer contact, rather than simply for its own sake.
5. Customer satisfaction percentage
Customer pleasure has two sides to it. There are scales that quantify it on a percentage scale, both external and internal, because no customer is totally satisfied or unsatisfied.
So beware of using simple percentages to calculate satisfaction. On the one hand, you’re measuring something that is a whole package of feelings that are invariably destined to change. On the other hand, you are measuring an expression of satisfaction.
Still, keep in mind that satisfaction cannot be measured using a simple scale or a percentage. Rather, a simple scale can only produce an approximate representation of actual feelings.
But Don’t Let This Discourage You
Customer experience is strongly tied to overall company performance. And contrary to some beliefs, it’s not solely the duty of front-line staff. Engaged consumers are the result of engaged employees, effective leadership, and operational excellence based on real-time customer satisfaction data.
Customers who are engaged generate income and help a company succeed. Therefore, you should regularly measure, analyze, visualize, and communicate customer satisfaction data in order to turn it into useful customer insight.
To effectively measure customer satisfaction, it would be best to use customer satisfaction surveys. Surveys help you understand customers and how they feel about your business, products, services, customer service agents, and more. With surveys, you can understand the customer psyche and how it behaves when deciding whether or not to make a purchase. And that’s going to prove very useful to know when you next target them – wouldn’t you agree?Load more...