Businesses trying to increase financial gain is as old as time immemorial. Today this is known as profitability and is the primary purpose for creating and building a business. Since profit is the number one reason for creating and building a business (Ferrell, Hirt, & Ferrell, 2018, p. 3), is profit more important than customer satisfaction? The origins of this argument were first explored in the 1950s by Peter Drucker and other academic leaders in the marketing industry.
According to Drucker (1954), the primary purpose of any organization is to create a satisfied customer. Profit is simply a reward for creating a satisfied customer. This was true back then and even more so in contemporary times. A dis-satisfied customer back in the 1950s may have told a few people about the dis-satisfaction and may have possibly disrupted a few sales from the company in question.
Today, if a company has a dis-satisfied customer, the customer simply leaves a bad review on Google, potentially informing millions of possible customers about his or her reason for the dis-satisfaction, thus influencing customer purchasing on a macro level. In the Internet age, customer satisfaction is more important than ever. Leaving customers dissatisfied in today’s market may be one of the fastest ways to lose profit when considering long-term capital gains. On a large scale, focusing on customer satisfaction is more important than focusing on profits because customer satisfaction is directly linked to profitability and customer dis-satisfaction is directly linked to profit loss.
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