Building relationships with your customers is a must when looking to start and grow your business. Some of the substantial benefits of building a quality relationship with customers are explained below.
Customer Satisfaction: Customer satisfaction is an important measurement of how a product or service meets or surpasses the customer’s needs. It is a reliable indication of the potential for repeat business and brand loyalty. Customer satisfaction can be attained only if your customer has an overall good relationship with your business and you consistently meet or exceed their expectations. In today’s competitive marketplace, customer satisfaction is an important performance factor and a basic differentiator of business strategies. Hence, the more satisfied the customer, the stronger the bond they have with your business.
Customer Retention: Customer retention is a strategic process to keep or retain your existing customers and deter them from using other suppliers or organizations. This is only possible when there is a quality relationship between your business and the customer. Usually, a customer will remain loyal to a particular brand or product as their needs grow and only if those needs are properly fulfilled.
Referrals: The most cost effective approach to grow your customer base is through referrals. When customers feel satisfied, they are encouraged to become brand advocates for your business. These referrals are beneficial for your business considering there is little to no cost associated with this process. Referrals are an optimal form of marketing and profit generation.
Revenue Growth: When your business maintains a healthy relationship with customers, revenue will always increase considering current happy customers tend to purchase more. There is also the potential for a satisfied customer to purchase additional products or services when offered the option to bundle those products and services. For instance, if a satisfied loyal customer has home insurance from an insurance company that they trust, there is a high probability that the customer will also purchase property and auto insurance from that same company.
Retention Cost: The cost to service existing satisfied customers is substantially less expensive than that of acquiring new customers considering there is no acquisition cost, your business should already know the needs and wants of existing customers, and active customers will have fewer queries and complaints as they are already aware of your business’s processes, products, and checkout flow.
Dr. Elijah Clark (June 8, 2023). Relationship Benefits [Web log post]. Retrieved from https://elijahclark.com/relationship-benefits/