Top 5 reasons why customer satisfaction is so important

For updated information to 2021 click here – Top 5 reasons why customer satisfaction is so important in 2021. 


Customer satisfaction plays an important role in your business. Not only is it the leading indicator to measure customer loyalty, identify unhappy customers, reduce churn and increase revenue; it is also a key point of differentiation that helps you to attract new customers in competitive business environments.

Stand out from the competition

In a competitive marketplace where businesses compete for customers; customer satisfaction is a key differentiator. Businesses who succeed in these cut-throat environments are the ones that make customer satisfaction a key element of their business strategy.

Kate Zabriskie once said that “Although your customers won’t love you if you give bad service, your competitors will.” Your competitive rivals are just waiting for you to make a wrong move. Being prepared isn’t always enough if you don’t know how to deal with the negative backlash. However, if you provide your customers with amazing customer service, you will gain arguments to convince those uncertain of your services.

Picture two businesses that offer the same product. What will make you choose one over the other?

If you had a recommendation for one business would that sway your opinion? Probably. So how does that recommendation originally start? More than likely it’s on the back of a good customer experience. Companies that offer amazing customer experiences create environments where satisfaction is high and customer advocates are plenty.

It reduces customer churn

An Accenture global customer satisfaction report found that price is not the main reason for customer churn; it is actually due to the overall poor quality of customer service.

Customer satisfaction is the metric you can use to reduce customer churn. By measuring and tracking customer satisfaction you can put new processes in place to increase the overall quality of your service.

It reduces negative word of mouth

McKinsey found that an unhappy customer tells between 9-15 people about their experience. In fact, 13% of unhappy customers tell over 20 people about their experience.

That’s a lot of negative word of mouth.

Customer satisfaction is tightly linked to revenue and repeat purchases. What often gets forgotten is how customer satisfaction negatively impacts your business. It’s one thing to lose a customer because they were unhappy. It’s another thing completely to lose 20 customers because of some bad word of mouth.

To eliminate bad word of mouth you need to measure customer satisfaction on an ongoing basis. Tracking changes in satisfaction will help you identify if customers are actually happy with your product or service.

It’s reflected in your revenue

Customers’ opinion and feelings about the brand can affect, in both positive and negative way, essential business considerations – such as the number of repeated transactions, customer lifetime value or customer churn. Happy customers will be less likely to look at your competitors – they will happily interact with your brand again, make a purchase and recommend the product further. If you meet all of their requirements and answer their needs while delivering the best quality of your services, they will be satisfied.

Measuring customer satisfaction should become your daily habit – not something you do from time to time and only if you’re about to face a crisis management.

Turn unhappy customers around

There are only a few things that impact a business’s reputation more than the way it responds to complaints. Customer service and satisfaction are vital parts of developing loyalty, and the way you respond to unhappy consumers will go some way to determining what they say or write, about you afterwards.

Ideally, every business would rather have exclusively positive feedback, but unfortunately, that’s not realistic. The key to handling negative feedback is to respond quickly and politely while assuring them that you are finding a solution. Make your customer feel heard and cared for and you’ll find it will pay off in the long run.

95% of people who had a bad experience are willing to give the brand another go if they know their issue has been dealt with correctly (QuestionPro).

We are in an era where trust is at a premium, consumer expectations are higher, word of mouth travels faster. Word of mouth is one of the most powerful tools a company can wish for today, and in this digital age, customer’s opinions are available instantly, through social media, review sites and search engines.

JudgeService can provide the tools to do all of this for you, to make customers feel valued and that their opinion matters. Contact us to talk about what we can do for you.