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Customer Satisfaction as a Key Business Metric


Organizations must understand the role of customer satisfaction for creating new customers and retaining the existing ones by increasing their loyalty for the brand. These loyal customers not only provide you with consistent business but also with a lot of referrals.

According to Bain & Company, “a customer is four times more likely to buy from one of your competitors if their problem is service related versus price or product related.” In order to achieve short term goals organizations usually forget about the long term benefits which can be attained by keeping customers satisfied. 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.”

The rate of customer retention is going down for every industry because the quality of service provided is not upto the benchmark. In today’s crafty world, customers have lots of options when it comes to choosing a product or a service. Customer retention statistics is difficult to obtain but the most important aspect is to understand the need of good customer satisfaction and what can be done for maintaining a high level of service. Here are 5 reasons that will help you in understanding the need of customer satisfaction for business metric:

Related: Root causes of Bad Customer Service 

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