Marketing

1The Importance of Capturing Your Customers

Customer satisfaction has been regarded as essential in doing business since ancient times. Customer satisfaction is viewed as even more important now that rival companies and products are everywhere. Satisfied customers will not only keep using your product or service, but will possibly spread good words about your product. On the other hand, unsatisfied customers will not use your product or service again. It's also possible that they will spread bad reviews of your product. It's a given that every customer's satisfaction is important, but the effect that a customer's satisfaction level can have on your sales has increased over the years.

Total sales from a single customer's use of a product or service over a lifetime is called lifetime value. It shows just how big an effect customer satisfaction can have on company sales. Satisfied customers will normally keep on using the same product or service. If they are satisfied enough, customers won't easily switch to another product or service. As a result, the accumulated sales from that customer will continue to increase through the years. The opposite is true for dissatisfied customers. A dissatisfied customer will use your product less and less and may eventually stop using it at all. As a result, the total sales for that customer will decrease. Various marketing strategies are necessary in order to maximize this lifetime value. Maximizing the lifetime value by increasing customer ...