Customer perception is a crucial aspect of any business, and it's essential to understand what it means and why it matters. Customer perception refers to the way customers think and feel about a product, service, or brand.
It's influenced by various factors, including personal experiences, social media, and word-of-mouth. According to a study, 80% of customers trust recommendations from friends and family over any other form of advertising.
A positive customer perception can lead to increased loyalty and retention, with 73% of customers more likely to make repeat purchases from a company they trust. On the other hand, a negative perception can result in a loss of business and a damaged reputation.
What Is Customer Perception?
Customer perception is the way a customer views a product, service, or company. It's a subjective experience that can be influenced by various factors.
Research has shown that 70% of buying decisions are based on how a product or service makes a customer feel. This means that companies need to focus on creating an emotional connection with their customers.
A customer's perception can be shaped by their past experiences, social media, and word-of-mouth. For example, if a customer has had a positive experience with a company in the past, they are more likely to have a positive perception of that company.
Companies can influence customer perception by providing excellent customer service, offering high-quality products, and being transparent in their business practices.
Importance
Customer perception is a crucial aspect of any business, and it's essential to understand its importance. It influences customer loyalty and satisfaction, and can even affect a company's financial success.
Customer perception can be shaped by their experiences with a company, and a positive perception arises from enjoyable interactions. This can foster a strong, loyal, and growing relationship between customers and the business.
Negative perceptions, on the other hand, can harm a brand's reputation and ultimately, its financial success. Companies need to know how customers perceive them at all times to tweak their positioning or offers.
The customer perception cycle is a key concept to understand, as it involves listening to what customers perceive and expect from a product or service. This can help companies identify areas for improvement and make informed decisions about future marketing campaigns or product offerings.
Here are some key reasons why customer perception is important:
- It can influence customer loyalty and satisfaction.
- It can improve marketing campaigns and product offerings.
- It can help identify customer needs and offer precise solutions.
- It can lead to increased customer satisfaction ratings and loyalty.
Companies that understand their customer's perception can start to see where they may have difficulty using or encountering their product or service. This information can help them address these deficiencies before they become major problems, leading to increased customer satisfaction ratings and loyalty.
Factors Affecting Customer Perception
Customer perception is shaped by a multitude of factors, including the quality of your customer service, the way you communicate, and the words you use. This is why it's essential to pay attention to every little detail, from the shopping experience to customer service.
Personal experience is the most crucial factor in forming customer perception, with everything from product quality to customer service playing a significant role. This means that customers will form an opinion about your brand based on their interactions with it.
Influencers have a huge impact on customer perception, with a single endorsement or criticism from a well-known figure able to significantly affect your brand's image. This is why it's vital to identify and hire influencers who are relevant to your brand.
Quality
Quality is at the heart of how customers view your product. It's the deciding factor that determines whether they'll return or not.
Customers expect high quality, and if your product doesn't meet these standards, it will quickly fall behind in the market competition.
High quality can lead to repeat business, while poor quality may drive customers away. Once you achieve high quality, it's crucial to maintain it.
Quality can be defined by various attributes, and it's essential to research the market to understand the specific quality expectations of your customers.
Service
Customer service is a crucial factor in shaping customer perception. It's not just about having a team in place, but also about ensuring they are always ready and eager to assist, guide, and support your customers.
The quality of customer service greatly influences how customers perceive your brand. Poor customer service can negatively affect your brand, making customers feel ignored.
Investing in your customer service team is essential to make customers feel valued and important. The more support you provide, the more your brand's reliability grows.
A positive customer service experience can leave a lasting impression on customers, making them more likely to return and recommend your business to others.
Life Experience
Your personal experience is a huge factor in shaping customer perception. This means that everything from the quality of a product to how your customer service functions affects them in a big way.
The way you interact with customers plays a crucial role in forming their opinions. Whether you're responsive, communicative, and friendly, or dry and boring, it all impacts how customers perceive your business.
Influencers can have a huge impact on the perception of brands. Even a short interaction with a product can significantly influence customer perception.
Customer reviews are a necessary part of customer perception. Good reviews positively influence potential customers and play a vital role in customer satisfaction.
Your company's image and reputation play an important role in customer perception. So if your customers think poorly of you, it'll be hard for them to recommend you to their friends or refer business your way.
The way you present your company, the messages you share, and the image you project greatly influence how others perceive your brand. Effective advertising can significantly boost brand growth by steering perceptions in the right direction.
The sum total of all his or her experiences and interactions with your brand is what forms their overall perception. A customer's perception of Starbucks, for example, is the sum total of their advertising messages, promotions, in-store experience, product experience, price, and external factors.
If you don't deliberately craft every aspect of your business' brand, your customers will craft it for you. This is customer perception – what people think about your business based on personal experience, social media, reviews, marketing, public relations, and other impressions they get.
Measuring Customer Perception
Measuring customer perception is crucial to understand how your target market views your brand.
You can collect feedback from your target market by following simple steps. Understanding where your company stands enables you to make changes accordingly and improve customer experience directly.
Net Promoter Score (NPS) surveys are an excellent way to get an idea of customer perception of your brand. The score is calculated based on various factors such as satisfaction, likelihood to recommend, and more.
You can visit the Net Promoter Score website to know all about it and start calculating your customer satisfaction and perception score. This will provide you with valuable feedback that can help improve things for future customers.
Creating a Positive Customer Perception
Creating a positive customer perception is crucial for any business, and it starts with making sure customers feel valued. A customer's perception of a business is established right here, and it's more important than most of us realize.
In just 1/20th of a second upon visiting your business' website, a potential customer has already established an almost unerasable perception about you. This first impression actually dictates whether they click the back button a bit later on.
To create a positive customer perception, you need to focus on customer satisfaction. This means meeting their expectations, which is critical to your business's success. Meeting their expectations is influenced by their beliefs, expectations, and attitudes towards your brand, products, or services.
Improving customer perception is crucial for any business, and it starts with making sure customers feel valued. You can do this by conducting customer surveys and analyzing customer feedback.
Responding positively to negative feedback is also essential in creating a positive customer perception. This approach reassures other customers and helps protect your reputation. By doing so, you show that you value their opinions and care about their experience.
To keep the brand in good standing, you must improve your customer perception to avoid losing customers or falling behind. This means fulfilling consumer needs and implementing excellent customer service.
Understanding Customer Perception
Customer perception is all about seeing your product through the eyes of your consumer, a lost art in today's marketing strategies. Companies often forget to factor in how the consumer will see their product, leading to misaligned marketing efforts.
Understanding customer perception is vital for businesses, as it directly affects customer loyalty and sales. A commercial for a toothpaste product that showed a little girl throwing up Halloween candy, for example, was perceived as the product tasting horrible, not its intended message.
Customers are more likely to purchase from a company that shares their values and mindset, with 71% preferring to buy from brands that align with their own values. This shared value connection builds trust and encourages customers to support the brand.
Personal Experience
Personal experience plays a huge role in shaping a customer's view of your business. Nothing shapes a customer's view of your business more than their personal experience, which comes from their own purchases and interactions with your brand.
A customer's overall perception of your business is the sum total of all their experiences and interactions with your brand. Let's use Starbucks as an example - a customer's overall perception of Starbucks is the sum total of their advertising messages, promotions, in-store experience, product experience, price, and external factors.
If a customer has a positive personal experience with your business, they're more likely to trust what you promise and become a loyal customer. However, if their experience is negative, it can lead to a loss of trust and even damage your reputation.
It's essential to focus on delivering exceptional customer service and managing customer feedback effectively to strengthen your business. Most business comes from customer experiences, so it's crucial to get it right.
Responding to Feedback
Responding to feedback is crucial for any business, as it shows that you genuinely care about your customers and want them to have positive interactions with your business regularly.
Taking customer feedback seriously involves addressing complaints promptly.
Ensuring that your customers are happy with the resolution of their issues is key to maintaining a positive relationship.
Sources
- https://simplycontact.com/customer-perception/
- https://www.under30ceo.com/what-is-customer-perception/
- https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/10818-customer-perception.html
- https://upjourney.com/what-is-customer-perception-and-why-is-it-important
- https://locobuzz.com/blogs/what-is-consumer-perception/
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