Satisfying customer needs
One of the main aims of a business is to satisfy customer needs. There are many reasons why businesses need to ensure that their customers are satisfied:
- To sustain or maximise sales or profit 鈥 If customers are satisfied they are more likely to spend money and recommend that company to other people. This will increase customer numbers.
- To retain customers 鈥 If customers are unhappy with a product or service they will not return.
- To maintain or improve market shareA company鈥檚 proportion of sales within a specific market 鈥 Customers who receive a good quality service will be more likely to purchase goods from that business rather than from a competing businesses.
- To improve reputation 鈥 If customers receive a good product or service they are likely to encourage others to become customers.
- To reduce the risk of failure 鈥 If customers are satisfied it is less likely that the business will fail.