How Improving Customer Satisfaction Can Benefit Your Business

How Improving Customer Satisfaction Can Benefit Your Business

There are few areas more important to your business than customer satisfaction. Not only does this provide you with a clear indicator of your consumer’s purchasing habits but it can also be utilized to attract new customers. There are many ways you can try to improve customer satisfaction rates. Some of them tried and true classics and others are directly linked to the new technologies we have available to us.

Improving Customer Retention

Many entrepreneurs are under the impression that the only way to be successful is to expand their user base. This leads to many companies feeling obligated to spend huge sums of marketing resources on attracting new customers. However, 70% of companies say that it’s actually cheaper to retain an existing customer than acquire a new one. Focusing on building consumer loyalty is a long-term approach that results in a more reliable, stable customer base.

This won’t be easy, but the first thing you can do is to create a loyalty scheme that rewards repeat customers. Starbucks reported a 26% increase in profits and an 11% rise in overall revenue when the company first introduced the initiative in 2013, while Walgreens recorded a massive 86% rise in sales. Similarly, studies show that, on average, a repeat customer spends 67% more on a given purchase than a first-time buyer so it’s in your company’s interests to prioritize them.

Driving Your Future Growth

As well as maintaining the customers you already have, improved customer satisfaction rates can also help to drive growth. E-commerce is a growing trend on a global scale. China, which has over 640,00,000 internet users, is the largest market and is estimated to take its spending past one trillion dollars by next year. Taking advantage of this new market isn’t as easy as making your goods available to them through international shipping, though, you also need to tailor your approach.

For instance, the average internet user in China is 25 years old so you may want to consider creating new products or services that cater towards the millennial market, if you haven’t already. Similarly, making sure your website is designed for mobile use is very important. 69% of Chinese consumers have purchased a product or service through their mobile phone, in contrast to just 46% of US consumers. These shoppers are also using payment methods you may not be familiar with, like Alipay and Tenpay.

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