The consumer is said to be the kingpin of the business. No business can survive without its customers. The level of satisfaction of customers measures the utility provided by the goods and services of a firm. It is something very important for a business to survive in the market. ‘Consumer satisfaction’ is a marketing term that totally indicates the level to which a business if found working well. It is an also important for the marketing managers to know the level of consumer satisfaction to create better marketing and managing policies.
Why is it important to know the level of consumer satisfaction?
Every firm looks for the level of its consumer satisfaction in the market because of the following 3 reasons
- To find out the intention of repurchase by the customer:
A happy customer will surely come to purchase again but an unhappy consumer will not. Thus it becomes important to find the satisfaction level and take necessary steps if the consumer isn’t satisfied.
- To remain competitive in the market:
The consumer satisfaction level is a point that creates a difference between the firms. Thus a firm is always required to concentrate on the key area to get a better satisfaction level of its consumers to succeed in the competitive market.
- To retain the consumer:
A firm can retain its consumer only if the customer is satisfied with the products or services. Thus it is important to know the level of consumer satisfaction to take necessary actions regarding retaining the consumer. It is always easier to retain an existing customer rather than creating a new one. Thus it becomes vital to ensure a proper consumer satisfaction level to retain the consumer.
Outcome of a High Consumer Satisfaction
A high consumer satisfaction level has various benefits of a firm. Not only that the company can sell more, but it is the main reason why company is still surviving in the market:
- It ensures no negative word of mouth: the existing consumers will instead praise and aware others about the good points of the firm rather than spreading a negative word. This helps in better retention as well as building up new consumers and thus a higher success of the business.
- It creates a lifetime value to the consumer: when a consumer is satisfied with the products and services of a particular firm, he tends to come their again and again which creates a lifetime relationship between the consumer and the firm. Thus it is said to create a lifetime value or a bond among them.
The consumer being the kingpin of a business cannot be ignored and thus is required to make satisfied at its fullest. It is important to ensure high consumer satisfaction levels to be successful in the world of tough competition.