4 Advantages Of Customer Recommendations

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It is important for a company to expand its customer base on an ongoing basis. A company can grow only if it focuses on providing quality products and services to its customers. Satisfied customers can help in improving the market reputation of the company.

A company enjoying recommendation for its products or services from its existing customers can increase its customer base and sales revenue within a short period of time. Therefore, it is important for a company to ensure complete satisfaction of its existing customers in order to earn the trust and confidence of the customers.

4 Advantages Of Customer Recommendations

Quick Access And Acceptance

A satisfied customer may recommend company’s products or services to his/her friends and family members. A positive feedback from an existing customer makes it easier for the company to attract new customers and gain quick acceptance for its products and services.

It is generally found that people prefer to buy a new product only after obtaining recommendation from an existing customer. Therefore, one of the most important advantages of customer recommendations is quick access to new customers and ready acceptance of products or services by these new customers.

Reduction In Marketing Costs

A company is generally required to advertise its products or services in order to attract new customers. Another important advantage of customer recommendations is that recommendations can help in reducing the overall advertisement expenditure of the company.

It is important to note that a company cannot completely avoid the advertisement expenditure with the help of customer recommendations. However, customer recommendations can reduce the effort involved in designing and implementing an extensive marketing campaign.

Increase In Profitability

Addition of new customers can help a company in increasing its profitability levels. Customer recommendations can provide an opportunity to the company to utilize its full production capacity in order to meet the requirements of new customers.

Further, saving in marketing costs can also help in reducing the price of the product or service. A reduction in price of the product or service can improve the competitive position of the company in the market.

Improves Employee Motivation

A positive feedback from a customer can also help in improving the motivation level of a company’s employees. It is quite possible that a customer may recommend a company’s product to another customer on account of excellent sales and support services provided by the company’s employees.

Such recommendations can provide employees with a sense of achievement. Employees may feel that their contributions are valued by the customers and the organization.

Customer satisfaction should be the prime objective of any business concern.  A negative feedback from a customer can sometimes result in a severe impact on the company’s market reputation. Proper systems, policies and procedures are required to be developed to handle customer issues and grievances.

Timely resolution of such issues can help in increasing the level of customer satisfaction and confidence in company’s products, services and management. It is important to note that a customer is not going to make a recommendation till the time he/she is completely satisfied with the company’s products or services.



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