Just how important is customer satisfaction to adding value to business? The fact is that without it a business won’t grow.
“Your customers are a key asset”, Paul explains. “Anything you can do to retain them will add value to your business. Raving fans are far more effective in recruiting new customers than a sales team. Also, social media platforms these days are the perfect opportunity for happy customers to spread the word about your product or service and make recommendations”.
Paul points out that customers who become evangelists for a business’ products or services drive growth.
“Research clearly shows that businesses with world-class customer service grow at a long-term rate of 20% per annum. Those with an average level of customer service have 4% growth. Businesses with below average customer service are unlikely to grow at all. Customer satisfaction is therefore vital in driving business growth and value“.
Paul advises, “The crucial question is how satisfied are your customers? If you don’t know, it is important to find out”.
Measuring Customer Satisfaction
“Think about it this way”, Paul explains. “If you buy a 30 year old car with only 5,000 miles on the clock, do you trust what you are being told, or do you ask to see the service history that will back this information up?”
“Customer satisfaction is desirable but it also has to be demonstrable, in order for it to be a value-building component in your business”
One way to introduce a system for capturing customer satisfaction is a simple Net Promoter Score (NPS). The way this works is by identifying the most appropriate point along the customer’s journey to ask a simple question, ‘How likely are you to recommend the brand/company to a friend or colleague?’
More general methods for measurements include the number of opt-in subscribers to newsletters, members of customer groups, or followers on Twitter and Facebook. All help prove the influence your business has in your marketplace.
“Put yourself in the shoes of a prospective buyer of your business”, Paul concludes. “It’s not enough for you to be telling them you have happy customers. You need proof, ready in the form of metrics. Powerful evidence of your company’s value to its customers encourages your potential buyer to pay more”.
If you would like to find out about the best ways to measure customer satisfaction in your business, please call Uscita Solutions on 01603 535020.
Uscita Solutions have produced a guide which covers Customer Satisfaction, along with 7 other drivers that can improve the value of your business. To download your copy of this guide, please click here