Companies are misguided nowadays by the notion that customers depend on them, when the truth of the matter is that companies are dependent on those customers. Customer satisfaction and customer loyalty is now essential for a business or company to survive. So what is the difference between customer satisfaction and customer loyalty and how to companies and or business achieve this? Also when you have difficult customers how do you achieve customer satisfaction?
It’s essential that companies or businesses today listen to their customers. No company or business today can afford to disregard the importance of customer satisfaction and loyalty. Aren’t they the same thing? No, they are absolutely not and they are enormously different. “Customer satisfaction is a self-reported measure of how much customers ‘likes' a company and how happy they are with goods purchased or services obtained from the company. Customer loyalty, on the other hand, is a company-calculated metric of likelihood to purchase again or not defect to a competitor” (Klein, 2013).
Achieving customer satisfaction is paramount in the business world today. Customer satisfactions assists you, assists the customer, as well assists the company and or business as a whole. According to Nelson “The level of satisfaction a customer has with a company has profound effects. Studies have found that the level of customer’s satisfaction has a positive effect on profitability:
• A totally satisfied customer contributes 2.6 times as much revenue to a company as a somewhat satisfied customer.
• A totally satisfied customer contributes 17 times as much revenue as a somewhat dissatisfied customer.
• A totally dissatisfied customer decreases revenue at a rate equal to 18 times what a totally satisfied customer contributes to a company”
A business must satisfy their customers to gain customer loyalty. Customer loyalty is much harder to obtain that customer service satisfaction. The most important first step is to satisfy the customer by meeting their expectations. Customers only give a company one chance and if they aren’t satisfied they will not do business with that company again, as well as tell others of their experience. The next step would be to exceed the customer’s expectations. If a business goes above and beyond to assist the customer they begin to build loyalty. The next step is to truly surprise the customer. In order to dominate the marketplace the company must find a way to make them selves stand out with their product or service, accompanied with phenomenal customer service. Once this has been done customer satisfaction and loyalty will be gained. “Acquiring a new customer can cost four or five times more than keeping a current customer” (Bestmark, 2013). So it’s essential to keep the current customer’s happy and coming back for more.
Some of the ways that businesses can build loyalty would be by offering loyalty programs, Interacting with customers,...