Economics/Business

Customer perception definition/Importance/4 influential factor/measurement

How your customers perceive your business influences acquisition and retention, and can even affect your business revenue. That is why today we are going to learn more about the importance of knowing the customer’s perception and how to make it positive. Customer perception definition

Knowing the customer’s opinion is very important, as it will help you to know what their perception of your brand is. 

Let’s learn more about this concept that will help you take your business to the next level.

What is customer perception?

Customer perception is what they feel about your product and your brand . It is an opinion that has been formed through each interaction they have had with your company, both direct and indirect.

Customer perception includes the feelings your company inspires in them , along with the descriptive words they would use when talking about your brand.

Understanding how your customers perceive your company can help you improve your marketing, detect opportunities to improve your service delivery and grow your business. Customer perception definition

Importance of customer perception

The way customers perceive your company influences all the actions they take. A positive customer perception can increase brand loyalty and generate referrals. It does this in two ways:

  • Alignment of values : If customers perceive that your company has strong values ​​that align with theirs, they are much more likely to buy from you.
  • Signs of trust : A positive perception of the customer can help build trust. If you deliver on what you promise, customers are more likely to engage with you, buy from you, advocate for you, and defend you.

4 factors that influence customer perception

Customers are influenced by more things than you think. Although your marketing can tell your customers how you want them to see you, they too will form their own opinion based on a number of different factors.

1. Customer reviews

Today customers read reviews online before buying. This means that their comments can have a big impact on how potential customers view your brand.

Positive comments are obviously great, but taking the time to respond to negative comments can also improve the way customers view your brand. Affective and empathetic responses show that even when things go wrong (as they commonly do), your business will be there for the customer. Customer perception definition

2. Marketing

It’s probably not a huge surprise that the way you display your brand through marketing has an impact on the way customers perceive you .

Your website, your ads, and your social media posts can all play a role in developing your public image. That is why it is important to be consistent in all the communication media of the company. Know what perception you want your client to have, and then create a message around it.

3. Company values

As mentioned above, clients want to do business with companies that have values ​​similar to yours . Having public business values ​​that you adhere to greatly influences the perception that your customers have of your brand.

4. Quality of customer service

The way you support your customers says a lot about what you think of them. Good customer service shows that you care and that you invest in the customer experience.

Poor service will cause a poor perception of the customer, they will tell them that you don’t care or that you are not able to provide support. Neither of the two improves the perception that customers have of your company.

Ways to measure customer perception

Since customer perception is wide-ranging and affects almost every part of your business, there are many different ways to measure it. Customer perception definition

Net Promoter Score (NPS) Surveys

The most direct way to understand what your customers think of you is by asking them. The NPS is a very popular survey because it is easy to configure and its short format results in high response rates. 

In addition to the usual question “How likely is it that you will recommend Company X to your friends and family?”, We recommend asking a follow-up question to better understand the customer’s perception and the reason for their response. You can ask something like

  • If you had to recommend us, what would you say?
  • What is the main reason you gave your answer?
  • What is the word you would use to describe our company?

Online mentions

Customer perception is heard on different internet platforms, and they are likely to talk about you on social media and on review sites. If you are listening, these comments are essential to gauge perception .

Online mentions on social media can also be analyzed to measure customer sentiment and identify common themes associated with mentions of your brand. Customer perception definition

You can also dig deeper by using text analytics in reviews, customer satisfaction responses, and social media comments to analyze sentiment.

Customer interview

For a more in-depth analysis , consider interviewing customers at different stages of the life cycle. Why did you decide to register? Why did you decide to leave the company? How would they describe your product or service? Having a longer conversation with customers will make you understand the customer’s perception further.

How to create a positive perception of your company 

Although many of the factors that influence customer perception may seem out of your control, the truth is that all opinions are derived from the way you treat your customers yourself and the way your company acts. 

Here are 4 ways to ensure customers see your business in the best possible light.

1. Respond to customer reviews

Most companies collect customer feedback in some way. But the downside is that customers consider that their opinions do not translate into changes.

With a closed loop system they can ensure you close the loop and meet their expectations.

2. Understand who your audience is

You cannot be universally loved by everyone. Instead, know who you are trying to attract and what they want.

3. Recognize and reward customer-centered behavior

Since customer perception is influenced by every interaction they have with your company, it means that each employee has a role in how your customers feel. Customer perception definition

To create a positive perception of the customer, you must first create a customer-centric culture that allows employees to act on their behalf.

  • Start from the top . The directors and managers must act in favor of the client. If you set a good example, the rest of the company will follow.
  • Build an employee-centric culture . Pay employees well, provide opportunities for growth, and provide the support they need to do the right thing for the customer. Put your internal staff first, and they will do the same for your clients.
  • Get everyone talking to customers . From engineers to executives to all teams, everyone should interact with customers. One way to do this is through technical assistance, but you can also conduct customer interviews or organize events.

Customer perception determines how your customers feel, if they continue to do business with you, and if they recommend you to their family and friends. In other words, how customers perceive you is very important.

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