ONCE A CUSTOMER, ALWAYS A CUSTOMER
Introduction
The purpose of a business is to create and keep a customer. If a business successfully creates and keeps customers in a cost-effective way, it will make a profit while continuing to survive and thrive. If a business fails to attract or sustain a sufficient number of customers, it will experience losses. Too many losses will lead to the demise of the enterprise (Ford, 2003). And with that, customers must be considered as a very valuable commodity. Not only are they making the business circulate, but they are also a source of referrals and future sales. Losing an existing customer is a tremendous loss to a current and long-term business success. That is why a customer satisfaction is a crucial part of marketing efforts. Successful companies are customer-driven, placing customers at the center of their decision-making process and focusing on strategies that deliver a consistently positive experience at every single point. Customer feedback is an integral component of customer centricity, and the understanding of how the customer experience works with internal and market factors is critical.
Moreover, a customer is anyone who receives that which is produced by the individual or organization that has value (Zelmer, 2008). Customer expectations are continuously increasing because of the wide array of options offered. Brand loyalty is a thing of the past. Now even if the product is not branded or high end as long as the quality and presentation of the product is outstanding and they get the most out of their money, the organization will gain a cult following. Customers seek out products and producers that are best able to satisfy their requirements. A product does not need to be rated highest by customers on all dimensions, only on those they think are important.
Customer Satisfaction – a Critical Component of Profitability
Exceptional customer service results in greater customer retention, which in turn results in high profitability. Customer loyalty is a major contributor to sustainable profit growth. To achieve success, superior service must be a second nature of an organization. A seamless integration of all components in the service-profit chain – employee satisfaction, value creation, customer satisfaction, customer loyalty, and profit and growth – links all the critical dynamics of top customer service (Zelmer, 2008). Therefore, it preserves the very basis of a business—the customer.
Customer Preservation
In today’s competitive business world and challenging economy, retaining a customer base is critical to the success of a business. If customers are not given good reasons to stay, competitors will give them a reason to leave. Customer retention and satisfaction drive profits. It is far less expensive to cultivate existing customer base and sell more services to them than it is to seek new, single-transaction customers. Most surveys across industries show that keeping one existing customer is five to seven times more profitable than attracting a new one (Kotelnikov, 1999). For a company to become customer-driven, it is important to understand the customer. The company must focus on the latest trends of the market by keeping track of the customer’s needs and the impact of any decision on part of the company on the customer.
Main Strategies of a Business in Maintaining Customers
A key to success is increasing the value that is provided to the customers and keeping up with their rising expectations. From the customer’s point of view, a company exists only if it creates value for them, and provide them with exceptional results. In the new rapidly changing economy the nature of value is changing, involving new ways to price goods, innovation and emotion. One of the best ways for a company to increase customer satisfaction is to make sure there is a thorough understanding throughout the organization of what customers really want, then use that information to follow up with actions, solutions, and resolutions.
There are two fundamental goals which are universal in business. The first is to grow market share, and the second to grow profits. In order to accomplish these goals, the company must differentiate itself from its competitors, in the customer’s view, in one or more of the five following areas: (1) price, (2) delivery, (3) performance, (4) quality, (5) total customer experience (Picarille, 2003).
Lastly, the very foundation in maintaining a solid customer base for the businesses to possess is in the simplest words—show sincerity, stay alert, be helpful and go the extra mile. Show the customer the willingness to go every step of the way in reaching their satisfaction is a surefire way in keeping that customer on coming back for more.
References
Ford, A 2003, Marketing Strategies, Putnam, New York.
Zelmer, T 2008, ‘Honomichl Top 50’, Marketing News, vol. 34, no. 3, pp. 39-45.
Kotelnikov, G 1999, ‘Results-Based Leadership’, Fairfield County Business Journal, vol. 35, no. 19, p13.
Picarille, K 2003, ‘Exceptional Customer Service, Business Wire, vol. 23, no. 8, pp. 23-35.
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