Satisfying Customers (SQA National 5 Business Management): Revision Note
Exam code: X810 75
Why is customer satisfaction important?
Customers are vital to every business because they are the people who purchase and use products or services
Customer satisfaction is closely linked to customer service
This covers the experience customers receive before, during and after a purchase, such as how easy it is to get help, how staff treat them and how problems are resolved
Why customer satisfaction matters
Reason | Explanation |
|---|---|
Repeat purchases |
|
Reputation |
|
Competitive advantage |
|
Meeting objectives |
|
Case Study
Mackie’s is an ice cream brand based in Aberdeenshire that focuses on customer satisfaction through high-quality products and sustainable production
During lockdown, many people bought Mackie’s ice cream as a small treat to enjoy at home, attracted by its strong reputation for taste and quality
The company continued producing a variety of popular flavours using local ingredients and environmentally friendly methods
This helped Mackie’s attract new customers, increase sales, and build strong brand loyalty even when shoppers had many other options
Consequences of unsatisfied customers
If customers are unsatisfied, the effects can be damaging for a business:
Consequence | Explanation |
|---|---|
Loss of sales |
|
Damage to reputation |
|
Lower staff morale |
|
Failure to meet objectives |
|
Ways to maximise customer satisfaction
Businesses can use a range of methods to keep customers happy and encourage their loyalty
Methods of maximising customer satisfaction
Method | How it helps |
|---|---|
Selling quality products and services |
|
Organisation of customer complaints |
|
Carrying out market research |
|
Providing effective after-sales service |
|
Commitment to staff training |
|
Case Study
Ooni, based in West Lothian, has become a global success by focusing on customer satisfaction
The company noticed that more people were cooking at home and wanted restaurant-quality food during lockdown
In response, Ooni invested in market research to follow food and lifestyle trends, and improved its after-sales support with online recipes, video guides and extended warranties
These actions helped Ooni build a loyal global community of customers who trust the brand for both its product quality and customer care
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