We are living in times where there is an ever-increasing competition among different companies. They are spending millions of dollars on advertising and marketing to attract more customers. It is indeed true, that companies are employed by their customers but sadly some of the companies are not able to meet the expectations of the customers making them leave negative reviews and comments over different social media platforms across the globe which puts a big question mark over the credibility and reputation of the business. “It has been found that CEO’s and other top officials around the globe are more concerned about improving customer satisfaction than anything else in the business”, says Ilan Shatz, having immense experience of the service industry.
Below are some of the reasons which can lead to customer and hence business loss primarily because of poor customer experience:
1) Damaged reputation
Before starting any business or company you have to realize that if you want to make huge profits than you have to develop a sense of gratitude for every customer by understanding their importance. It is indeed true that however small the profits may be but as long as you have a good number of customers you will be able to keep going in your business and eventually will turn it into huge profits and sadly the reverse is quite true as well. “ A poor customer satisfaction experience can lead to a series of poor customer satisfaction experiences as businesses run on the mouth of a word and the good news is that a good customer satisfaction experience is likely to increase your chances to have more satisfied customers as well ” as simply put by Shatz.
In an era of internet and modern technology, businesses are becoming more and more vulnerable to customer reviews and comments as they can post anything from anywhere in the world by being completely anonymous which can lead to the downfall of any business. Hence, poor customer satisfaction will eventually throw you out of the business.
2) Competitors are likely to attract your customers by all means
In a world of business, your competitors are always ready to attract your customers by using different baits. If you are making your customers leave unsatisfied then it is very likely that they will switch over to your competitor’s brand and some of your competitors will always be ready to give them offers and discounts initially and using other means to make sure you must have a hard time retaining them.
3) You have to spend more on marketing and advertising
It has been experienced by many business leaders around the globe that customers leaving the businesses due to poor customer experience will eventually end up making you spend more on marketing and advertising. Therefore, some of the leaders around the globe believe and advocate that it is better to retain the current customers than to spend again on marketing, advertising and executing different strategies.
Conclusion: As the different number of companies is growing and posing threat to already settled companies. Hence, it is becoming more and more important for them to realize the importance of customer satisfaction because it is indeed the satisfied customers which are the main source of their revenue as they keep coming back. With the ubiquity of the internet and social media platforms, bad customer service is likely to bring a bad name to your business as they can speak their mind by being completely anonymous. An unsatisfied customer brings a bad reputation to your business. Hence, your competitors are very likely to take advantage of these situations by attracting them using different baits. The most painful part of an unsatisfied customer is the fact that it puts you in a situation where you have to analyze your strategies again and may need to employ different marketing and advertising techniques which will ultimately lead to unnecessary expenses as agreed by different professionals in the service industry such as Ilan.