Why is service satisfaction so important?

This article explains why measuring service satisfaction is important for any organization that wants to take things to the next level.

Most business owners and heads of organization firmly believe that service satisfaction is definitely something to aim for. There are some researchers, however, who are convinced that satisfied stakeholders are not necessarily loyal stakeholders. Hence, they argue that measuring service satisfaction is a waste of time and that it’s stakeholders loyalty that should be tracked instead. Do you, too, find yourself wondering if service satisfaction really matters? This article lists three reasons why service satisfaction is crucially important for any organization.
What is service satisfaction
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  • T-Mobile
  • BBDO
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  • Accor hotels

First, let’s talk numbers

Before we begin our short but sweet exposé, we thought we’d share a few interesting stats with you. For instance, did you know that:

  • 7 in 10 marketing managers believe service satisfaction is an important metric to manage and monitor a business’ progress?
  • Zappos, an online retailer known for its extremely high customer satisfaction rate, reports that 70 to 75 procent of its sales stem from purchased made by returning customers. Additionally, loyal Zappos customers tend to order more than two times the amount they ordered as first-time customers.

The importance of service satisfaction

Still not convinced? These reasons are definitely worth a read:

1. Stakeholders are more expensive to gain than to retain

Gaining new stakeholders is more expensive than retaining the ones you already have. Think about it: treating a stakeholder to a friendly smile costs your organization nothing. The ad campaign that attracted the visitors to your business in the first place, however, does.

2. An unsatisfied stakeholder can never be a loyal stakeholder

No matter how great your organization compares to the competition, service satisfaction is important if you want stakeholders to stick with you. Unsatisfied people will always take their business elsewhere, even if it means giving up advantages only your organization offers.

  • Did you know? Rather than pushing customer service staff to sell, sell, sell and hang up the phone as quickly as possible, Zappos encourages them to establish an emotional connection with the customers they talk to. It doesn’t even matter if they make a sale. Zappos’ longest call lasted for 8 hours – and the sales rep was lauded for it.

3. You can’t measure success without measuring service satisfaction

Sure, you’ve got your goals all set out and you’re meeting all the deadlines. But what if your target audience actually prefers a different approach? Without measuring service satisfaction, you can never be sure if you’re on the right track in the long run.

Find out how happy your target audience really is

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