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Why Improving Customer Satisfaction is a Critical Part of a Successful Retail Business
2 min read
by Muneeb Qadar
In this competitive business world, offering excellent customer service has become a necessity for retail brands to stay ahead of the curve. If truth be told, customer satisfaction is one of the major factors that contribute to your retail business success. Therefore, retail brands are advised to put their best efforts into creating a great shopping experience to keep their customers loyal and satisfied.
When your customers are satisfied with the products you are offering, they will definitely want to come back for more and gradually become your brand ambassador. Businesses that deliver exceptional customer experience generate 4%-8% more revenue and obtain a 5% increase in customer retention.
If you fulfill the ever-increasing demands of your customers, they will definitely prefer your brand over others and will become your loyal customers. Today’s customers stay loyal to brands that offer amazing shopping experiences. According to Gartner, more than 64% of consumers find customer experience more important than price. This is why providing the best customer experience has now become a top priority for retail businesses.
Let’s explore why customer satisfaction is important and how it can take your retail business towards new heights of success.
Generate More Revenue
Offering an excellent customer experience is the key to generating more profits and revenue. Satisfied customers are more likely to prefer your brand and purchase your products again and again. According to a survey, 86% of buyers are willing to spend more for an exceptional customer experience.
Image source: Super Office
When customers have built trust in your retail brand and are assured they will get quality products, they will continue to do business with your brand. In short, customer satisfaction and more profits are directly proportional.
So, do your best to satisfy customers with excellent service and persuade them to come back repeatedly to make repeat purchases.
Increase Customer Lifetime Value
Today’s consumers have limitless options to fulfill their needs. This is why a majority of businesses find it hard to attract prospective customers toward their brand and convince them to buy their products. However, focusing your energy and spending resources on keeping existing customers happy is a worthwhile idea.
Building a strong relationship with your loyal customers encourages them to return to you in the future and become your loyal customers.
To increase customer loyalty, offer what your customers need, meet their expectations, provide special discounts and deals to keep them engaged. Keeping your existing customers satisfied will increase your customer lifetime value, which will increase your revenue and profits.
Increase Your Brand Image
It is one of the biggest advantages of offering a memorable customer experience and maintaining a base of satisfied customers. Happy and satisfied customers will play a key role in promoting your brand, increasing brand awareness, and improving brand reputation. If truth be told, customer advocacy works far better than any marketing campaign. Small businesses estimate that more than 85% of revenue generated due to word-of-mouth marketing.
Today’s people are more conscious than ever; they only buy products from a brand that peers, family, or friends refer to. According to HubSpot, people referred by friends or acquaintances stay more loyal to a brand and have a stronger attachment than those who found the brand by other means.
When people are satisfied with your products, they talk about your brand, which will eventually promote your brand and boost brand awareness. According to a survey conducted by Zendesk, 87% of consumers share their good experiences and recommend brands to their friends and family.
Reduce Customer Churn
If you are one of those who think higher pricing is the only reason for customer churn, think again. There are many brands that have a large, satisfied customer base despite their higher prices.
Happy customers who receive an exceptional customer experience make repeat purchases and mention the brand on different channels. They happily interact with a brand, make a purchase and refer the products to their friends’ circle.
However, unhappy customers won’t do business with you. You need to address customer churn by meeting their requirements, send quick replies to their queries, and deliver quality products.
Did you know businesses lose $1.6 trillion per year due to customer churn? It is advised to focus on reducing customer churn and building relationships with your existing customers. It will eventually decrease the customer churn rate and generate more revenue for your company.
Keep Your Brand Ahead of the Competition
In this competitive business world, staying ahead of the curve is no easy feat. You can run successful marketing campaigns and retargeting campaigns only if you know how to ensure customer satisfaction. When you successfully provide your customers with a memorable experience, you will get a competitive advantage over your competitors who offer the same products.
You can satisfy your customers by providing a convenient, user-friendly website or a feature-rich mobile app that allows them to buy your products.
The best mobile app development company can help you develop a great mobile app that allows your customers to buy products conveniently. Moreover, treating your customers with care, providing prompt response, and quick delivery can also improve customer satisfaction.
Over to You
Meeting and exceeding the ever-increasing customer expectations has become a challenge for retail brands. Keeping their needs and demands in mind and offering the best customer experience can help you create a huge following of satisfied customers.
If your customers are not happy with your retail business, now is the time to make some important tweaks in your retail business strategy to improve customer satisfaction and turn your customers into brand advocates.
About author
My name is Muneeb Qadar and I work for Branex as a digital branding strategist. I have worked for numerous companies in the past and have helped them reach their potential in terms of online reach for their products. I can provide you deep insights related to the branding for your product with respect to your competitor’s strategy for best results. So, don’t waste a moment and contact me for quick and positive results.