Satisfaction & Loyalty of Customer in Cosmetic Industry

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Brand attributes represent the brand’s characteristics in the company. It is the pack of features that highlight the physical and personality aspects of the brand that created through actions, images, or presumptions. Brand attributes also contribute in creating brand identity of a product. A strong and outstanding brand must have these few points such as:

- Proper positioning means that a brand must put in the right market in order to attract the right and targetted customers on their product.

- Sustainable means that a brand able to be competitive with other brands and able to sustain in the market.

- Consistency means that the brand created to build customers’ trust and signifies what the brand stands for. Consistency also included as the way the company send message to customers that does not disgress from the core brand proposition.

- Appealing means that a brand able to attract customer with its attractiveness by giving promise and/or value that the brand has.

- Uniqueness means that a brand must be different than other brands which is its competitors so customers will have their excuses to choose your brand rather than your competitors’ brands.

- Inspirational means that a brand should inspire the category it is famous for.

- Relevancy means that a brand should targetted into the right customers because if a brand targetted into the right customers then it will meet their expectations and should be relevant with what the customers wanted. If your product is unique but targetted into the wrong market/customers then the customers also will not buy it because they think that they do not need it at the moment.

- Credibility means that a brand should give what it alrdy promises on the first time. The brand should not fail deliver what it already promised which means that you should not overstated about your promises of your product to your customers in order to not give the wrong perception.

- Satisfaction Response

Customer satisfaction is the term of marketing about measuring how services or products supplied by a company meet or surpass a customer’s expectation. This matter is important because it gives metric that the marketers and business owners can use to manage and improve their businesses. There are almost 200 senior marketing managers with more than 70% in a survey responded that they found a customer satisfaction metric essential in managing and monitoring their businesses (Beard, 2014). It is the key performance indicator inside businesses and often part of balanced scorecard which is a strategy performance management tool that is a semi-standard structured report that supported by design methods and automation tools which is used by managers to keep track of the execution of activities by the staff in their control and to monitor the consequences arising from these actions. It is important for businesses to manage and handle customer satisfaction effectively. Companies need representative and reliable measures of satisfaction in order to able to manage customer satisfaction.

Companies can do surveys and/or feedbacks system to get what the customer wanted, satisfy of, and their expectations because expectations are the main point for their satisfaction.

Customer satisfaction is totally essential for a company to run their businesses because if the customer is not satisfy enough and do not feel enough of the products’ benefits then the customer will go into other products. Then there are the six reasons of why customer satisfaction is essential for businesses, such as:

- The point of differentiation

Businesses that succeed in ruthless and cruel business environment are the one that able to make customer satisfaction as the key element of their business core. Customer satisfaction is the key differentiator in competing with other competitors. For example, a company that offer amazing customer experiences by making environments where satisfaction is high and important and customer supports are a lot. Customer satisfaction not only helps you to maintain the existing customers but it also will attract new customers into your businesses.

- The leading indicator of customer repurchase intentions and loyalty

By asking customer to give rate about their products or services is the best way to know about customers’ satisfaction onto your products or services and also able to know if the customers will make purchase again in the near future. With the scale ranging from 1-10 is a good way to see if they will become your existing customers or even supports your company. If the customers give you rating ranging from 7-8 then they are considered satisfied of your products or services and it is sure that they will come back again and again to purchase your products or services. If the customers give you rating of 9-10 then they are your most potential customers that you should keep and maintain and they are able to support your products who you can leverage to become evangelists for your company. If the customers give you with rating 6 and below then you should take care of them and try to maintain them because it is your warning signs that they are unhappy or unsatisfy of your product and in risk of leaving your market.

- The increase indicator of customer lifetime value

A “totally satisfied customer” contributes around 2.5 times more revenue than a “somewhat satisfied customer” was founded by a study by Info Quest (Beard, 2014). Moreover, a “totally satisfied customer” contributes 15 times more revenue than a “somewhat dissatisfied customer”.

This study above shows that satisfaction has a big role that how much revenue customers generate for your businesses. A successful business will understand about the importance of customer lifetime value. If you increase customer lifetime value then the returns on your marketing dollar will also increase. Customer lifetime value is a beneficiary of high customer satisfaction and good customer retention.

- Reduces negative word of mouth

The revenue and repeat purchases is tightly linked with customer satisfaction. Commonly, businesses forget about the negative impact on customer satisfaction on the businesses. The unsatisfaction customer is able to give impact to other customer or also your customer because of some bad word of mouth. A research by McKinsey (Beard, 2014) stated that an unhappy customer tells between 8-16 people about their experience on a product.