Business owners know that in order to stay in business they need customers. However, getting new customers all the time can be difficult and expensive. Acquiring a new customer costs can cost up to five times more than keeping a previous one.
The way to avoid these customer acquisition costs (CAC) is to know when your customers actually enjoy your business. Theoretically, the more they like your business, the longer they’ll stay. And this, in turn, would be way better for your pockets in the long run.
One of the easiest ways to gauge your customer satisfaction ratings is by paying attention to how often customers come back. Having multiple repeat customers shows that you’re delivering something that your target audience likes. They like it so much that they want to keep their money with you versus the competitor.
In the past, companies that were performing in the top percentile got more than 20% of their revenue from repeat customers. It’s vital for business owners to understand the connection between loyal customers and company health. Getting customers to purchase three or four times is definitely a sign that you’re going in the right direction.
Returning customers are also a sign of trust within your customer base. People don’t usually just hand over their hard-earned money to anyone. For them to make purchases with you more than once says a lot.
Thanks to social media it’s easier than ever to spot good customer satisfaction. This is because most people love to share details about their lives. And one of those details just happens to be the brands they adore and the products they use.
If you want to know how much people might like your brand, check out your social media. See if people are creating genuine user-generated content (UGC) around your products. Are people tagging your company in their posts?
The most important factor to consider here is whether or not they’re paid. Of course, you can ask an influencer if they could record a sponsored ad review of your brand. But something more valuable is when people do this out of pure satisfaction from the transformation and relief you’ve provided them.
Although paying for content might not give you an accurate depiction of how the customer truly feels, you can still slightly nudge them toward sharing honest opinions. Firstly, encourage them to share with others via their social pages using unique hashtags for your brand. You can ask them to do so inside of postcards that get shipped with their orders.
Secondly, do really good business. Again, most people are already used to sharing things they love and find interest in. Make sure you’re brand is providing a quality experience that people want to talk about.
You may not have tracked down any social media shares yet. However, there are still ways to tell if people are talking about you. This way is called referrals.
Referrals are one of the best ways of obtaining business leads and customers. This is because typically the person coming to you already has an increased sense of trust since they were referred by someone close to them. Studies have shown that 92% of people trust referrals from their friends.
Three key factors in business are getting people to know, like, and trust you. These components are built and strengthened over time, as the relationship between company and customer grows. But a referral system helps you to skip the trust portion because your satisfied customers have already taken care of that for you.
When you do a great job, people want to tell their loved ones so that they can have the same experience. Remember to ask customers where they’ve heard about your business to track how often you’re getting referrals.
The simplest way to figure out if you have high customer satisfaction is to just ask! Conducting surveys is an amazing way to get the best picture of how customers feel about your business. But it doesn’t just stop at their overall feelings toward the business? you can ask specific questions about why they feel this way too.
Surveys and questionnaires help business owners to make better-informed decisions. They can gather information directly from the source (customers) and make changes accordingly. The important thing to keep in mind is which questions you include in your surveys.
You definitely want to include basic information, such as age, location, etc. Then you want to ask questions that will prompt customers to help you become better without directly asking. Sometimes a super open-ended question can go ignored. Try to include straightforward questions such as:
These questions can be great starting points for figuring out how customers view your company. Another thing to consider with surveys is how you’ll interpret the data. Being able to accurately navigate data is important for figuring out your customer satisfaction ratings.
Some people may things it’s too expensive but getting to know your customers better is well worth it. Consider outsourcing this part to companies like CheckMarket for the best direction on things like sample size and analysis.
If you want to avoid constantly having to attract new customers, it’s best to take care of the ones you have. Your customer satisfaction ratings are an indicator of how well of a job you’re doing in this area.
Pay close attention to the signs mentioned in this article. And remember running a successful business means putting the people you serve first. For more tips on customer retention, read the rest of our blog.
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