Customers-interest and influence

Customers as Business Stakeholders

Definition

Customers are individuals or entities that purchase goods or use services provided by a business. They are a crucial stakeholder group, as their choices directly impact a business's revenue and success.

Importance of Customers

Revenue Source

• Customers are vital to a business's survival, as they provide the majority of its revenue through purchases.
• Example: A clothing store relies on customers buying its products to generate income.

Market Research and Satisfaction

• Businesses must identify and satisfy customers' needs by conducting market research and producing goods and services that meet those needs.
• Example: A smartphone manufacturer conducts research to understand customer preferences and develops products with desired features.

Customer Loyalty

• Building and maintaining customer loyalty is essential to ensure repeat business and long-term success.
• Example: A coffee shop offers loyalty cards to encourage customers to return regularly.

Customer Expectations and Influence

Expectations

• Customers have specific expectations, such as quality products, reasonable prices, and value for money.
• Example: A restaurant customer expects a delicious meal at a reasonable price.

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Customers - Interest and Influence

Influence on Business Operations

• Customers have the power to influence a business's operations by deciding whether to purchase a product or use a service.
• Example: Online reviews and customer ratings can affect a hotel's reputation and bookings.

Influence on Business Operations

• Customers have the power to influence a business's operations by deciding whether to purchase a product or use a service.
• Example: Online reviews and customer ratings can affect a hotel's reputation and bookings.

Word of Mouth

• Satisfied customers can promote a business positively through word of mouth, while dissatisfied customers can harm its reputation.
• Example: A satisfied customer recommends a restaurant to friends, leading to new customers, while a dissatisfied customer posts a negative review online.

Customer Satisfaction and Loyalty

• Customer satisfaction and loyalty are critical for a business's success, as they lead to repeat purchases and positive referrals.
• Offering after-sales service ensures that customers are happy with their purchases and builds trust.
• Businesses strive to keep customers loyal and encourage them to return, resulting in increased sales and profitability.

In conclusion, customers are pivotal stakeholders in any business, as they provide the primary source of revenue. Businesses must understand and meet customer needs through market research and satisfaction. Customer loyalty, driven by positive experiences, is essential for long-term success. Customers' influence on business operations, reputation, and revenue makes them a key stakeholder group that businesses must engage with and prioritize.