We are brought up with one ultimate life goal: being happy. Our mom wants us to be happy. Our best friends want us to be happy. Therefore, we want to be happy.
And we spend billions of dollars trying to reach this goal of everlasting happiness. (Fun fact: It’s scientifically proven that chocolate makes us happy. Just saying.)
But what if someone interrupts us on our way to becoming the happiest person on planet? Someone called our customer?
Your Customer aka the Ultimate Happiness Killer
As mentioned in my last post, customers are supposed to suck. And trust me, there will eventually come a time when you’ll find out what I’m talking about.
I’ve also given you some hints on how to deal with negative customer feedback. What I didn’t explain is the reason why it’s important to properly deal with customer feedback and how a satisfying customer experience can drive your business.
In this post I’m going to focus on the satisfaction part or as I like to call it why happy customers are better customers.
Happy Customer = Satisfied Customer = Growth
Your customers are the most important part of your business. They are the ones that keep your company alive. And the ones that spend their hard earned money on your product.
In exchange for this investment, you as the company are supposed to provide a great product or service. This dependency on each other – the customer's need for satisfying product and the company's need of money to grow – is usually referred to as customer relationship and it come with the full spectrum of science.
Fall in Love with your Customers
The term customer relationship immediately indicates how your customers should be treated: like someone you’re having a close relationship with.
Therefore you should care about the experience and satisfaction of your customers as well as about their feedback. Following this principle, this means a lot of work and therefore consumes a lot of time and effort. But it eventually pays off and the following benefits are the result:
Ever since, the personal recommendation of a product or service has been one of the most effective ways to attract new customers. With the increasing possibilities the internet offers, recommendation marketing becomes even more important. Just think of video blogs or testimonials on websites vouching for products and services.
2. Positive Ratings
Thanks to human nature, some people really enjoy telling others about the great things that have happened in their life. As a company, you can use this sometimes annoying habit to strengthen your business as these customers are very likely to leave comments or ratings about your product.
Studies prove that satisfaction drives the length of your customer relationships. It's simple, just think of your favorite restaurant and ask yourself why you love going there and what makes the experience special (e.g. the price, the atmosphere, or simply the great food).
4. Less Costs
Keeping one existing customer is usually six times cheaper than attracting a new customer.1
5. High Customer Lifetime Value
This marketing term refers to „the dollar value of a customer relationship“ (Wikipedia) and indicates the importance of long-term customer relationships. As a quantified number, which is calculated by discounting future cash flows. It also provides information on how much money should be spent at most on acquiring new customers.
6. And yes, Money
At the end of the day, all our efforts in fostering customer relationships follow one aim: making money. To eventually grow our companies and get more customers over time. Yes, the party never ends!
What we learned from this article
Customer satisfaction is one of the key elements of sustainably growing businesses. Therefore it is undoubtedly important to focus on providing products or services that make your customers happy.
Remember? Your mom wants you to be happy. And if you want to be happy, your customers must be happy. Equals, your mom wants your customers to be happy.
Your mom’s a genius.
- Why It's OK to Fire Your Bad Customers, Groove (November 2014)
- Five Customer Retention Tips for Entrepreneurs, Forbes (November 2012)