Read more about Business
The quality of products and services has and will always be one of the main factors of competition in major markets because it signifies the level of affluence and influence a company has. Product Quality is a social evaluation that depicts the level of consumer satisfaction in specific consumption conditions. On the one hand, a company would prefer to run a highly profitable business with a low customer satisfaction rate than the other way round, this might be because, sometimes, in as much as companies deliver quality products and better services, levels of positive customer experience tend to decrease worldwide, because users get accustomed to these new standards almost instantly. However, for most companies, customer satisfaction, for sure, comes before the company’s profit, given that the cost of retaining customers is always lower than attracting new ones. If a customer is happy, they will be back and spend more money on your products and services and might even go on to recommend you to others willingly or in exchange for some meagre benefits. As a company, if you focus exclusively on making a profit instead of paying attention to the level of product quality the company delivers, building long-term relationships even with your customers will be complicated, if not impossible for you because you are solely profit-oriented. Profitability is key to a leading business because a company has to make a profit to exist and remain relevant. Unfortunately, high quality with premium service for a low price is not a feasible strategy and on the other hand, low quality with high price is a strategy that won’t work out in the long run.
Sign up to the Connect Nigeria daily newsletter
Therefore, as a company, if you intend to create a balance between product quality (which invariably leads to customer satisfaction) and profitability, it is encouraged that you start with studying customer orientation and segmentations. Learn who your audience is, what they need, how much they can afford to pay, and what their priorities are. To balance the two situations, you should aim to provide quality products and services than people expect, encouraging them to come back for more. That ability to offer quality products and services and effectively match them with customers’ needs and opportunities is the core of any well-run organization’s value to customers. Below are some vital things to understand and apply in order to ensure the quality of your products and still increase the company’s profit:
- Customer Orientation: Most Business Organizations rely on their customers and therefore they need to understand their needs and how to meet them. The product quality of the business should focus on customers’ needs because companies are expected to produce and sell what their customer needs.
- Leadership: Balancing these two situations in a company cannot be possible and effective without the participation of the firm’s management. Company managers or leaders must have a vision, put together clear, precise and customer-oriented objectives. The company managers or leaders have a role to play in creating this balance through quality planning, control, assurance and improving the quality system of the firm.
- Staff Involvement: They are one of the most important resources of the business, and the active participation of employees can help create a balance between product quality and the company’s profit in ensuring the quality of products, their knowledge and expertise are crucial for the business. The human factor in the company is in fact the one responsible for the development of internal resources to increase the company’s capacity to achieve higher profits.
Got a suggestion? Contact us: editor@connectnigeria.com