{"id":135486,"date":"2020-12-17T10:00:34","date_gmt":"2020-12-17T07:00:34","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/how-to-balance-customer-satisfaction-and-profitability\/"},"modified":"2020-12-17T10:00:34","modified_gmt":"2020-12-17T07:00:34","slug":"how-to-balance-customer-satisfaction-and-profitability","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/how-to-balance-customer-satisfaction-and-profitability\/","title":{"rendered":"#How to balance customer satisfaction and profitability"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3dfb388b6fb\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3dfb388b6fb\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-balance-customer-satisfaction-and-profitability\/#Different_circumstances_require_different_strategies\" >Different circumstances require different strategies\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-balance-customer-satisfaction-and-profitability\/#Customers_invest_in_the_experience_and_they_are_aware_of_it\" >Customers invest in the experience, and they are aware of it<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-balance-customer-satisfaction-and-profitability\/#In_general_customer_satisfaction_always_comes_first\" >In general, customer satisfaction always comes first<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-balance-customer-satisfaction-and-profitability\/#So_there_comes_another_question_for_who_do_we_work\" >So there comes another question: for who do we work?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-balance-customer-satisfaction-and-profitability\/#To_sum_up\" >To sum up\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#How to balance customer satisfaction and profitability<\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2020\/12\/profitability-customer-satisfaction-balance-gq-796x417.png\" \/><\/p>\n<div>\n                                <span>\u201cThe better you treat customers, the more likely they are to come back and recommend your services, increasing the profit,\u201d some might say. However, the world isn\u2019t black-and-white, and when it comes to business strategies, there\u2019s more to this than a seemingly obvious causal connection.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Different_circumstances_require_different_strategies\"><\/span><span>Different circumstances require different strategies\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span>On the one hand, an entrepreneur would prefer to run a highly profitable business with a low customer satisfaction rate than vice versa. On the other hand, levels of positive customer experience tend to decrease globally, as companies deliver better services and users get accustomed to these new standards almost instantly.\u00a0<\/span><\/p>\n<p><span>I\u2019ve found the core \u2018balance\u2019 to be driven by the business owner\u2019s goals. If an entrepreneur aims to make money quickly, they won\u2019t be concerned about customer satisfaction much, whether they deliver a promised level of services or meet deadlines.\u00a0<\/span><\/p>\n<p><span>If a person provides a one-time in-demand service, they don\u2019t have to care about customer satisfaction. It may be unethical, but it is feasible. As soon as such a company is out of items or their service becomes irrelevant, the business is out of customers as well.<\/span><\/p>\n<p><span>Those convinced that customers are going to return no matter what don\u2019t invest much in customer satisfaction either. For example, vendors that offer the lowest prices on the market know for sure that there is a client segment ready to endure poor service if it is compensated in terms of price.<\/span><\/p>\n<p><span>Therefore, we can draw a pyramid with a low quality of service delivery at the bottom and high level at the top. It doesn\u2019t matter whether we speak about items for personal use or B2B services \u2013 it\u2019ll be the same pyramid. And the quality of services that is at the core of customer satisfaction is inversely related to it.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Customers_invest_in_the_experience_and_they_are_aware_of_it\"><\/span><span>Customers invest in the experience, and they are aware of it<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span>The more a customer is ready to pay, the higher level of service they expect to get. When we compare the purchase of a used car and the purchase of a luxurious car, technically, the processes don\u2019t differ much. And still, people expect to get a totally different level of experience and attitude in each case because of the prices they pay.\u00a0<\/span><\/p>\n<p><span>In the latter case, a vendor has to create an atmosphere that becomes an added value \u2013 a personalized <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach they tend to call \u201cunforgettable experience.\u201d\u00a0<\/span><\/p>\n<p><span>People in the middle segment, as a rule, are more or less satisfied with the level of services they receive. This audience may have some suggestions on improvements, but they don\u2019t demand anything extraordinary.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"In_general_customer_satisfaction_always_comes_first\"><\/span><span>In general, customer satisfaction always comes first<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span>If we are speaking about the majority of businesses, customer satisfaction, for sure, comes before profit. The cost of retaining customers is always lower than attracting new ones. If a person is happy, they will be back and spend more money. They may recommend you to the others willingly or in exchange for the benefits a loyalty program offers.\u00a0<\/span><\/p>\n<p><span>If you focus solely on making a profit instead of paying attention to the experience and quality the company delivers, building long-term relationships will be complicated, if not impossible. In a perfect case, you should aim to provide a bit better service than people expect, encouraging them to come back for more.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"So_there_comes_another_question_for_who_do_we_work\"><\/span><span>So there comes another question: for who do we work?\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span>That\u2019s when one more variable comes in: customer\u2019s paying capacity that lies at the heart of customer segmentation.\u00a0<\/span><\/p>\n<p><span>In practice, the story of the balance of customer experience and profit is closely linked to the abovementioned market segmentation, which, in its turn, is based on payment capacity. And in this case, it is not about respect or disrespect \u2013\u00a0it\u2019s about maths.\u00a0<\/span><\/p>\n<p><span>Price, quality, and service are all the variables in the formula of customer satisfaction. Their value changes depending on the circumstances, but the correlation remains constant: all are more or less equal.\u00a0<\/span><\/p>\n<p><span>The <\/span><i><span>high<\/span><\/i><span> quality of products\/services that comes with <\/span><i><span>high<\/span><\/i><span> customer satisfaction is <\/span><i><span>high<\/span><\/i><span>ly-priced. Change the italic text to \u2018low\u2019 or \u2018average,\u2019 and you\u2019ll get the rest of the basic formulas. If one of these elements is not synchronized with the rest, it affects either profit or customer satisfaction rates.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"To_sum_up\"><\/span><span>To sum up\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span>Profitability is key to a leading business. A company has to make a profit to exist. To keep business sustainable, you need to determine the correct price to quality correlation.\u00a0<\/span><\/p>\n<p><span>Unfortunately, high quality with premium service for a low price is not a feasible strategy, rather a utopia. Meanwhile, low quality with high price is a strategy that won\u2019t work out in the long term.\u00a0<\/span><\/p>\n<p><span>So if you aim to find the balance between customer satisfaction and profitability, I suggest you start with studying customer segmentation. Learn who your audience is, what they need, how much they can afford to pay, and what their priorities are.<\/span><\/p>\n<p class=\"c-post-pubDate\">\n                                    Published December 17, 2020 \u2014 07:00 UTC\n                                <\/p>\n<\/p><\/div>\n<p><script data-src=\"https:\/\/connect.facebook.net\/en_US\/sdk.js#xfbml=1&amp;appId=378011798897423&amp;version=v2.6\" id=\"socialSrcFacebook\" type=\"text\/template\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thenextweb.com\/growth-quarters\/2020\/12\/17\/how-to-balance-customer-satisfaction-and-profitability\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#How to balance customer satisfaction and profitability&#8221; \u201cThe better you treat customers, the more likely they are to come back and recommend your services, increasing the profit,\u201d some might say. However, the world isn\u2019t black-and-white, and when it comes to business strategies, there\u2019s more to this than a seemingly obvious causal connection.\u00a0 Different circumstances require&#8230;<\/p>\n","protected":false},"author":1,"featured_media":135487,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/img-cdn.tnwcdn.com\/image\/growth-quarters?filter_last=1&fit=1280,640&url=https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2020\/12\/profitability-customer-satisfaction-balance-gq.png&signature=08430d63b87b63c8bb74b9ad09f5775c","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-135486","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/135486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=135486"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/135486\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/135487"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=135486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=135486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=135486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}