Customer is the king in market and business. This applies to all industries and sectors. Customer has importance in business. There are various tools in customer relationship management. The satisfaction of customer determines the effectiveness of marketing efforts. Customer is responsible for driving the market forces. Segmentation, targeting and positioning are done for customers. Every business has the aim to earn profit by having good relation with customer. According to the needs of customers, companies diversify their products. Let us look at the reasons for which customer is important in market.
Customer’s perception is their reality
We always assume that customer is right. Customers are important for the success of a business. But they are not always right. They can be wrong at times. Sometimes customers create bad impression for trivial reasons. Still they are treated well so that business does not suffer. Customers are responsible for the perception of business and services. Their perception becomes their reality.
Customer retention is easier than acquisition of new customers
It is easier to keep the existing customers happy than attracting new customers. More expenses are incurred for acquiring new customers. But less expenses are incurred in having good relations with the existing customers. When you retain the existing customers, the churn rate decreases. That in turn reduces the need of acquiring new customers. By having good customer relationship management, companies give good experience to customers. That benefits the company as customers can help in marketing communication. They can tell their good opinion to others.
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Complaints of customers spread very quickly
Word of mouth communication of customers is beneficial only if they have good opinion. But it is detrimental to a company when the customers have bad opinion about its products and services. If customers do not get nice treatment, then their word of mouth turns into bad press. In today’s digital world, we are connected with many people. This is possible through the presence of many social media platforms. If a dissatisfied customer posts about any bad service or product, then numerous people can see it. The post can go viral across Internet. So, companies must respond to the complaints of customers and solve them.
No business can sustain without customers
There is no business in the world who does not have a customer. Some businesses have a greater number of customers, while some have less. Some businesses need to interact frequently with their customers, while some do not. Still all the customers are important. Organisations should consider them as priority. The success of business depends on customers. Companies should know their customers and retain them at any cost.
Customers determine the success of a brand
Brands win or lose by how well they attract customers. Companies must identify customers and focus on them. They should put themselves in the shoes of their customers. Then they have to think whether they are taking the right actions. Customer segmentation is essential for customer relationship management. This is needed so that appropriate actions can be taken for different segments of customers. Customers select a brand on the basis of various criteria. Whether they stay loyal to the brand, depends on the products and services of brand.
Customers want the best
Customers always want the best value for their money. This is what companies have to provide them. The customers have to be kept in mind while developing products and offering services. If customers are satisfied with a particular product, then they want it again. This shows the success of a brand. Companies should try their best in pleasing customers.
Customers have power
Offending customers can lead to loss in business. This holds very true for business based on services. If a customer feels offended by the service offered, then he or she will never come again. That customer will influence the other customers also. In today’s economy, customers have tremendous power because of social media. Earlier customers could influence others only by word of mouth communication. But today they can post on social media and let the world know their opinion. This is the power of customers. Social media has upgraded that power. So, companies have to be careful while interacting with customers.
Do not tell customers what to do
Since customer is king, he or she should not be told what to do. Customers demand products and services; companies have to provide that. Customers must be left free to decide what they want to buy. They buy products according to their needs. They avail services as per their requirements. This is how customers are. They will not buy products or avail services only because they are asked to. Aggressive marketing can increase the churn rate of customers. Customers can be advised while buying products but they must not be forced. They listen to suggestions but decide on their own. Interfering with their decisions can turn them off. Companies have to keep in mind that customer is king in every way.
Customers want things to be easy
People want to save time, money and energy as much as possible. That’s why products and services must be accessible to customers. Marketing is about physical convenience to customers. Companies can make online platforms if they can for the convenience of customers. Even if they do not provide buying option online, they can provide viewing option. In this way, customers can see the products and decide what they want to buy. Then they can go to the retail store and buy the product. This saves their time and energy. Business will flourish when it becomes easy for customers to participate. Just like kings, customers want their lives to be easier.
Allow customers to call the shots
Companies must let their customers to call the shots. For having good customer relationship management, companies must allow customers to take decisions. This does not mean that customers will handle the business. Companies can take feedback from customers. They can give valuable suggestions for improving products and services. If customers take part in new product development, then they will surely buy that product. They will feel happy and valued. This enhances the relation between company and customer.