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Customer Experience

7 Reasons Why Customer Satisfaction Drives Better Results

May 25, 2023

There are many factors that determine the success of any business. And the most important among them is Customer Satisfaction.

Customer Satisfaction is the measure of how products and services supplied by an organization meet Customers' Expectations. It is defined as a measure of customers' happiness with the products, services and the overall experience with an organization.

Customer Satisfaction is so important that it alone can take your business to the paths leading you to the big heights of success.

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Why Customer Satisfaction is necessary?

Reason for existence of any business is the need of the customers. Customer Satisfaction is all about how well you fulfill those needs and expectations of your customers.

Imagine you visit a cafe to have a cup of coffee after a hectic day. The cafe has a very good ambiance, comfortable seating arrangement, welcoming staff serving you hot coffee in a beautiful mug at a very low price.

But what if that coffee doesn't taste well at all? Would you like to visit again to that cafe to have a cup of coffee? Certainly not! You would rather prefer to have it from a small coffee stall and even at a higher price, provided its quality is good and it tastes well. This is because you feel satisfied with that coffee.

That is why Customer Satisfaction is essential. Let's list out some reasons of Customer Satisfaction driving you better results.

Why Customer Satisfaction Drives Better Results

  1. Competitive Environment
  2. Increased Customer Awareness
  3. Customer Satisfaction facilitates Customer Retention
  4. Customer Satisfaction Increases Goodwill of the Brand
  5. It Promotes Customer Loyalty
  6. It is even more Important than Price
  7. It is the Leading Indicator of Customer Repurchase Intentions

Let's review how these reasons make Customer Satisfaction good enough to drive better results.

1. Competitive Environment

Competition in every area is growing day by day. In this fully competitive environment, customers have a plenty of options to choose from. Be it ordering a pizza or buying a car, customers have many alternative to select from. Monopolistic markets have disappeared in almost every area.

The customers will choose only those products and services which satisfy them the most. So, it is necessary to maintain an enhanced level of Customer Satisfaction in order to stop them from going to your competitors.

2. Increased Customer Awareness

As the markets are becoming highly competitive, today's customers are also aware of everything. Nowadays, sellers are doing advanced level marketing of their products and services to attract more and more customers and customers also inquire about various alternatives.

Most customers nowadays are digitally active and check features, reviews and ratings of almost everything they buy. Due to this increased customer awareness, you have to adopt such practices which satisfy the customers the most.

For instance, if you are running a travel agency, you cannot sell a travel package at a high price when your competitor agency is selling the same package with more facilities at a lower price, because the customers will explore many other options before finalizing a tour with you.

3. Customer Satisfaction facilitates Customer Retention

When the customers buy your products or services, the reason behind that is the satisfaction with the products and services you provide them. If you compromise on that, it would be difficult to retain your customers.

Dissatisfied customers usually do not come back, unless you timely solve their issues and change their dissatisfaction into satisfaction. So it is necessary to satisfy your customers if you want to decrease churn rate in your organization.

It is always cheaper to retain the existing customers than bringing new customers.

4. Customer Satisfaction Increases Goodwill of the Brand

When the customers get satisfied with your products and services and the overall experience they have with your organization, they not only opt for your brand the next time, but also promote your brand among their known ones. This increases the goodwill of your brand in the market and has a great positive impact on your sales.

Whereas, if you fail to provide the required satisfaction to your customers, they will look for other alternatives and will choose one of your competitors. Moreover, if they go through a bad Customer Experience, they will spread a bad word of mouth in the market.

Always remember that dissatisfied customers often speak louder than the happy customers.

Nowadays, there are many social media platforms on which customers vent out their emotions by providing Customer Feedback in the form of reviews, comments etc. And most of the new customers look for reviews and comments on these platforms before trying a brand for the first time. So it is very important to enhance Customer Satisfaction in order to increase goodwill of your brand in the market.

5. It promotes Customer Loyalty

Customer loyalty is the likeliness of the customers of suggesting a brand to their friends, family and known ones. Customer loyalty can be measured with the help of metrics called NPS (Net Promoter Score).

When you continuously satisfy your customers and provide them a great Customer Experience, it develops their trust in your brand which further helps in building a good customer relationship. This promotes customer loyalty towards your brand which ultimately drives better results for your business.

6. It is even more Important than Price

Although, price is an important factor determining a customer's decision to buy a product or a service, but price alone cannot work if your product or service is not capable of satisfying the customers.

In 2019, 61 percent of millennial consumers in the United States stated that they would be willing to pay more for quality customer service. (

For instance, you are planning to have a family dinner tonight at a restaurant. You have two options nearby. One which is serving you food at a very low price but the food quality is not good. Whereas, the other one is providing a good quality delicious food but with a higher price.

Wouldn't you prefer to pay a higher price for a better quality of food with a great taste? You would definitely choose the one with the higher price but better quality and taste of food because it provides you satisfaction.

7. It is the Leading Indicator of Customer Repurchase Intentions

Running a business successfully is not only about attracting new customers, but also serving the customers in a way that whenever they need the same or a similar product or service, they choose your brand. This is only possible with a good level of Customer Satisfaction.

Whenever the customers intend to repurchase a product or a service, they consider they prior Customer Experience. If they were fully satisfied with the brand they choose previously, they will certainly opt for the same brand again. Whereas, if customers do not get satisfied with a brand the first time, they loose trust in the brand and usually never come back.

Therefore, if you are able to satisfy your customers, this indicates good chances of opting your brand the next time also. On the other hand, dissatisfying a customer can lead to loosing that customer forever.

Learn more about Customer Satisfaction (CSAT)

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Nikhil Dawer

Written by Nikhil Dawer

May 16, 2020

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