Customer Value and Satisfaction | 5 Tips on Improving Both
Customer value and satisfaction are two essential aspects of marketing.
But contrary to popular belief, they’re not the same.
While both important, there’s a distinct difference between them- And learning that difference can help your business build a marketing strategy that generates maximum revenue.
So before we get into the tactics that make up your strategy, let’s talk about the difference between customer value and satisfaction in the first place.
The Difference Between Customer Value and Satisfaction
What is Customer Value?
Customer Value is the list of benefits a customer receives that outweigh the cost of a product.
You can think of it as profit from the consumer’s end.
If a consumer buys a $50 book from Amazon, will they get at least $50 – or preferably more- worth of value out of it?
If so, the “profit” a consumer receives is called customer value.
Customer value is highly important because consumers weigh each product’s customer value against its competitors.
The product that offers the most value for the least amount of investment is usually the one a consumer will pick.
Or in other words, consumers tend to look for the most bang for each buck.
What is Customer Satisfaction?
Customer Satisfaction is the consumer perception of how well a product delivers on the aforementioned value.
If a product delivers the customer value it promises or more, customer satisfaction will be high.
If the perceived value of a product is lower than promised, customer satisfaction will be low.
To put it simply, customer satisfaction is a “grade” of a product’s value.
Why Customer Satisfaction Should be Your Top Priority
Customer satisfaction is one of the pieces that should near the top of the priority list for every business out there. Here’s why:
Word of Mouth Is a Powerful Marketing Tool
Social proof is as good as gold, and word from a brand’s loyal followers make for some of the best marketing out there.
Word of mouth is so important that 64% of marketers agree that it’s the most powerful form of marketing.
And the best way to increase your brand’s word of mouth marketing?
Ensure that more of your customers are 100% satisfied.
As your brand delivers on its value promise to customers, word of mouth will inevitably increase as well.
Though word of mouth can work in the exact opposite way as well.
One unhappy customer isn’t just a 1-star review, they’re an “anti-advocate.” Each customer who walks away from your business unsatisfied makes for one more consumer who steers their colleagues away from your brand.
It Helps You Acquire New Customers Through Customer Referrals
On a similar note, higher customer satisfaction will help to increase the number of referrals for your brand.
Pair that with a well-built loyalty or referral program and you’ve got a marketing machine that only builds a compounding ROI.
It Increases Your Average Customer Lifetime Value
Oftentimes, satisfied customers are returning customers.
And when you consider that returning customers are about 55% more likely to convert than first-time visitors, it becomes increasingly more clear why customer satisfaction is so essential.
Remember, customer satisfaction is one of the first steps towards a loyal brand follower.
5 Tips to Raise Your Average Customer Satisfaction
So we’ve covered why customer value & satisfaction are so important, but that still begs the question:
How do you increase customer satisfaction?
Let’s get right into it.
Tip #1: Hire a Top-Notch Customer Service Team
No matter how great your product is, there’ll be problems that come up.
Whether it’s human error or a fault within the product, you’ll need a team to help customers find a solution when these problems come up.
A poorly trained customer service team is a great way to ensure walk away completely unsatisfied.
On the other hand, an excellent customer service team can turn even the sourest customers into loyal brand advocates if they can help to find a solution.
Bonus Tip: Establish More Than One Support Channel
When it comes to customer support, an email ticket system isn’t enough, at least not alone it isn’t.
We’re far past the days where online (or offline) brands could get away with email customer support that gets back to you within 1-3 business days.
The most successful brands ensure there are support channels of all kinds for customers to choose from.
Live chats, phone lines, and helpdesks are all great channels to open to increase your customer support capabilities.
Tip #2: Decrease Your Average Response Time
We’ve all been there: Waiting on hold for a customer support rep for what seems like an eternity.
And when they finally return there’s no solution to be found.
No customer wants to wait in a queue for support. One of the most significant ways you can revamp your customer support (and in turn, customer satisfaction) is to decrease the average response time from your reps.
Tip #3: Aim to Provide Value at Every Step
Customer-centric brands don’t just offer value when a customer makes a purchase, they provide value at every step of the customer journey.
From free deliverables and content marketing, all the way to post-purchase product support-
The best way to increase customer satisfaction is by delivering on the value your brand promises in the first place.
While it may seem like a no-brainer, many brands fail to surpass or even meet customer expectations.
Tip #4: Build a Loyalty Program to Reward Long-Term Customers
The vast majority of consumers aren’t diehard loyal to any one particular brand.
And as such, many of them will switch brands when it’s convenient or there’s a slight increase in value from a competitor.
To avoid customer churn due to competitors, you’ll need to give your brand followers a reason to keep coming back.
And one of the best incentives for repeat purchases is a loyalty program.
Loyalty programs are excellent ways to reward your loyal customers for sticking with your brand, and they’re just another way you can continue to provide more value.
Tip #5: Take Customer Satisfaction Surveys
Increasing customer satisfaction isn’t magic, it’s a science.
And because it isn’t magic, brands that act on whims aren’t going to see great results in terms of customer satisfaction.
To effectively increase your customer happiness, you’ll need to collect data to do so.
And the best place to get that data?
Your customers.
Use customer satisfaction surveys to identify the strengths and weaknesses of your products, then use that information to hone in on the aspects that customers get the most value out of.
The Wrap Up
There you have it, a rundown on the difference between customer value and satisfaction- And why they’re both so vital to your business’ success in the long term.
Think we missed anything or have any questions? Leave a comment below!
And if you found this guide helpful, make sure to check out some of the other posts on our blog.
