Most people recognize that customer satisfaction is important for the continuous growth of a company in the dynamic business environment. But not all of them know the real benefit or contribution of satisfied customers to the firm.
Thus, the competitive firms have operating models which are intentionally designed around the activities that create value for their customers and the best firms develop their operating models around the activities that drive satisfaction to produce highly satisfied customers. Highly satisfied customers often repeat purchase and refer others, which drives profitability which is the ultimate objective of all business in the capitalist world.
It is assured that companies which deliver the highest possible level of customer satisfaction are able to enjoy the benefits and the following points will be helpful:
Thus, the competitive firms have operating models which are intentionally designed around the activities that create value for their customers and the best firms develop their operating models around the activities that drive satisfaction to produce highly satisfied customers. Highly satisfied customers often repeat purchase and refer others, which drives profitability which is the ultimate objective of all business in the capitalist world.
It is assured that companies which deliver the highest possible level of customer satisfaction are able to enjoy the benefits and the following points will be helpful:
- Reduced vulnerability in price wars because customers are less likely to be attracted by lower prices being offered by competition. Further more, when a company is in a price war, the profit for the company is very very marginal.
- Being in a position to command a price higher than the existing average price in the respective field of business due to the fact that the satisfied customers with the service are less price sensitive than those dissatisfied.
- Great success in continuing to expand the total customer base via word of mouth referrals, thereby reducing the need for heavy promotional spending on such as advertising, sponsoring, promotional activities and items and so on.
- Greater customer loyalty leading to higher repeat purchase which lowers marketing cost by reducing the number of customer lost to competition, retaining the existing customer loyalty is about 5 times cheaper than campaigning for new customers. However, steady and timing advertisement will be required to build awareness and brand image for both existing and potential customers.
- The combined effect of higher premium prices and lower marketing costs allowing a greater proportion of resources being available for reinvesting into new products/service capable of further widening the superiority gap over competition in the future.
0 comments:
Post a Comment