5 Reasons why customer satisfaction is important


Did you know… it takes 12 positive customer experiences to make up for one negative experience? (Parature).

Customer satisfaction is a term that is part of a customer’s experience which measures how a product or service that your business offers have met or exceeded the customer expectations. Discovering if your customers are satisfied with your service is an important and vital part of running a successful business, and here are 5 reasons why…


1. Customer satisfaction increases positive word of mouth

Negative reviews can often spread quicker than positive ones, especially with how interconnected the world is today.  Having disgruntled customers speak negatively about your business can ultimately be damaging to your business.

However, if your customers are happy they are more likely to recommend you to their network, which is something small businesses rely on as 85% of their new business comes from word of mouth.

2. Customer satisfaction keeps you ahead of your competitors

Having a consistently excellent customer satisfaction rating is beneficial for keeping a high business retention rate and it also keeps you ahead of you ahead of competitors that may not be as customer focused. Exceeding your customer expectations and needs will significantly increase your customer retention.

3. Customer satisfaction is an indicator of customer loyalty

A beneficial factor of customer satisfaction is it is a gateway to earning and maintaining loyalty. It is said that often it takes three years for a customer to become loyal to your business, and then it is important to maintain this relationship and keep them satisfied, not only to retain their business but so they can give you an insight on how you can improve your service.

4. Customer satisfaction can measure the possibility of customer repurchase intentions

Being able to measure customer satisfaction is the best way to see how likely a customer is to repurchase in the future and promotes customer retention. It is also more cost-effective and less time consuming to retain your existing customers than to acquire new customers.

5. Customer satisfaction highlights ways to improve your business

Through measuring how satisfied your customers are, and obtaining feedback from past customers you can highlight the areas of your business that need refining. The information customers share with you will also highlight which areas of the business are performing well, some company’s link employee and department bonus schemes to high standards of customer satisfaction.   


Consistently high levels of customer satisfaction will anchor major competitive advantages for your business these include repeat buying, reducing the cost of doing business; you will also be able to command higher prices leading to higher profits and business growth.

If customer satisfaction is your goal, putting in place a survey that is conducted by an independent market research professional will ensure that the views received from customers are impartial. The market research agency will also be able to compare results at regular intervals and measure changes over time. Market research reports are provided at the end of the research which also includes recommendations for your business.

A quick and very cost effective measurement of customer satisfaction can be implemented using the NPS (Net Promoter Score), customers are asked just one question based on their most recent experience. This enables you to react quickly and address the quality of your customer service within your team almost in real time.

To find out more about JEM and how you can use our Market Research expertise to help your business then please call us on 01933 271717 or email

You will be entered into our prize draw worth £100 of high street vouchers or a charity donation of your choice if you discuss your 2018 market research plans with us today.

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