Satisfying customer needs

Satisfied customers
Satisfied customers will continue to use a business and contribute to its profits

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 – 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 – If customers are unhappy with a product or service they will not return.
  • To maintain or improve market share – 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 – If customers receive a good product or service they are likely to encourage others to become customers.
  • To reduce the risk of failure – If customers are satisfied it is less likely that the business will fail.