Happy customers: tips for improving loyalty and satisfaction

By Indeed Editorial Team

Updated 16 January 2023

Published 28 April 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

If you've ever worked in a customer-facing role, you've probably had to deal with customer feedback. While identifying less satisfied customers is often straightforward, identifying satisfied customers can be somewhat challenging. To create and maintain a happy customer, it's important to find ways to improve a product or service. In this article, we explain how to tell if customers are happy, why happy customers are good for business and provide a list of tips for improving overall satisfaction and customer loyalty.

How does a business know if it has happy customers?

Happy customers are often less likely to tell you they're satisfied with a product or service than customers who are unhappy with their experience. Not all customers feel comfortable complaining and may choose to take their business elsewhere without comment.

It can be challenging to determine if silent, passive customers are happy with a product or service or whether they just haven't found the right platform to share a review of their experience. Sending out surveys and reviews, managing social media accounts and monitoring customer service queries or complaints are important ways of discovering if a product or service satisfies customers. These channels are also a great way to find out what a company is doing well and what it could do to improve the customers' purchasing experience.

Related: How to write a customer testimonial page (with examples)

How do happy customers impact a business?

Customer satisfaction is important for maintaining the company's customer retention rate, improving team morale and increasing revenue. A happy customer is much more likely to make a repeat purchase than a customer with a less positive experience. Not only are happier customers more likely to spend more money on a business, but they're also more likely to spread positive word of mouth. They may share good online reviews of the company and recommend the brand to their friends and family.

Positive feedback and word of mouth reviews can lend a brand credibility and help a business acquire new customers. At the very least, positive reviews can sway prospective customers who may have seen less favourable reviews from second-guessing their purchase. Keeping customers satisfied can also positively impact a company's work environment and the morale of employees. Dealing with content customers can create a pleasant working environment and lead to happy employees.

Related: 17 common types of customer needs (with definitions)

Top tips for improving customer loyalty and satisfaction

Excellent customer service can be simple when you know how to do it properly. Follow the tips below to help reward customers and improve their brand loyalty to keep them coming back:

1. Collate customer reviews frequently

Reviews are extremely important for building trust with customers. When prospective customers consider a purchase, they often use review platforms, whether on a company's own website or on an external review platform. As satisfied customers may be less likely to voluntarily write an excellent review than a customer who has had a less satisfactory experience, it's important to prompt them and encourage satisfied customers to share their experience and feedback with others.

It's also important to have plenty of reviews on a company website. Prospective customers visiting a website without reviews may choose an alternative company that other customers have already verified. Businesses can collect company testimonials on various online forums, on social media sites, or from search engines. It's important to monitor these review sites regularly and respond to all customers who leave feedback, regardless of whether the reviews are positive or not.

Related: How to get customer feedback with methods and tips

2. Use surveys to gather feedback to improve products or services

To offer customers the best possible service, it's important to understand their needs. What are they looking for in a product or service, and what are they missing? Surveys are an excellent way to collect this information and other data from customers. Survey platforms also offer customers the chance to provide open, honest feedback on what they like and any areas in which they feel the business could improve.

The company can then use this feedback to improve its products or services, aligning it with customers' wants and needs. Customers who feel that a company considers and listens to what they say are more likely to have a positive experience.

3. Ask for feedback after a purchase

While surveys are excellent tools for conducting customer research about a brand, asking for feedback about a product or service can yield more appropriate and specific results. After a customer has purchased and had enough time to try the product or service, send them an email to find out their thoughts about the product or service and their overall shopping experience. Include multiple-choice questions and a comment section where customers can leave more detailed feedback. Feedback like this can help shape a business's website content, the product itself and its customer service processes.

4. Send personalised offers to customers

When attempting to build customer satisfaction, aim to offer the customer more of what's most relevant or useful to them. One of the most popular ways a company can do this is by sending personalised discounted offers or promotions to its customers. A business can gather data on its customers to steer these offers. Offering customers personalised saving opportunities helps them feel like individuals and not just part of a database.

A great way to reward existing customers is to send discounts on their birthday or specific offers for particular products or services that might interest them or that they purchase frequently. To encourage return business, companies can also offer a gift or discount to returning customers after they've spent a specific amount of money.

5. Monitor the Net Promoter Score (NPS)

A Net Promoter Score (NPS) is a metric that calculates customer satisfaction by asking a group of customers how likely they are to rate or recommend a business to somebody else. The higher the overall score, the happier the customers are with their products or services. As a higher NPS score is a sign of trust and acts as social proof, this also helps to encourage prospective customers to make a purchase.

6. Focus on providing excellent customer service

One of the most important factors in keeping customers happy is by having an active sales and customer service team to respond to all queries and feedback, whether via social media, phone, email or an online chat service. Consumers will feel heard when customer service teams responds to their messages as quickly as possible. It's also important that the company trains the sales department to deal with customers in a polite and friendly manner and customer service responds to and deals with every aspect of a customer's feedback.

Related: How to deal with angry customers (with examples and tips)

7. Be proactive and communicate with customers regularly

Communication is extremely important when running a business. Keeping the customers informed at every stage of the process is key for setting and managing realistic expectations and helping to ensure positive feedback. Aim to send out email updates for customer orders as regularly as possible and ensure that customers receive confirmation of a booking or purchase directly after placing an order.

8. Run gifted campaigns

If a company develops a new product or service, offering a sample or the option to try it for free is a great way to reward existing customers and help them feel invested in the company's brand. Besides keeping customers happy, there are many benefits to offering free samples or trials. After trying the product or service, these customers may mention or recommend them to family or friends, helping the business gain new customers. Companies can also ask these customers to leave an honest online review to help build their brand credibility.

9. Monitor the competitition

A company's competitors can affect the perceptions and expectations of their customers, so it's important that businesses conduct regular competitor analysis. If a customer switches to a different brand after trying a competitor's service, they may expect to receive the same or a higher level of quality or customer service.

Having competitors offer better deals can also influence how happy a customer feels about the product or service they're currently receiving. It's important that businesses watch their competitors closely to identify gaps or opportunities in the market so that they can offer an equal or better service to their customers.

Related:

  • What Is Customer Satisfaction?

  • Guide to creating customer satisfaction survey questions


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