Improving your product quality is paramount to preserving your business’s bottom line. Here are six reasons why product quality is important.
Most businesses won’t succeed if they can’t build customer trust; potential sales are lost when brands fail to make deeper connections with prospective buyers. In contrast, when you gain the confidence and loyalty of consumers, you have more freedom to make decisions, such as raising prices. Always delivering high-quality products and services is one way to help you get consumers to appreciate and believe in what you have to offer. For example, when PwC surveyed consumers about building trust in a company, “product quality” ranked number two, with nearly 8 in 10 respondents agreeing with the sentiment.
Consumer trust is a critical component for any business, and product quality can help you achieve it. For example, when PwC surveyed consumers about building trust in a company, “product quality” ranked number two, with nearly 8 in 10 respondents agreeing with the sentiment.
Humanizing the company also can help customers connect with your brand. One way to do this is to create newsletters or social media posts that show updates and photos of what employees are working on. If customers begin to associate faces with your company, it will help them connect with your organization more than they would with a faceless corporate entity. Another way to build loyalty and appreciation is to establish a rewards program. Understanding the value of customer loyalty is crucial when trying to establish repeat business.
Purchasing TipBottom lineYou can use customer relationship management (CRM) software to track and manage customer interactions throughout the customer lifecycle, improving customer satisfaction and company success. To learn more, check out our FREE buying guide to the best CRM software available.Most people trust recommendations from friends and family above all other forms of advertising when making a purchase decision. This is why nothing beats word of mouth when you’re trying to gain customers.
Word-of-mouth recommendations can be a persuasive factor in both online and offline purchasing decisions. Friends and family want to know if someone similar to them had a good experience with a product. The higher-quality product a company has to offer, the better chance it will have at driving positive reviews, recommendations and shares between consumers.
“If you design and sell products that last, do their jobs well, and are easy to maintain, you’re going to create loyal customers who will happily evangelize for your products,” said Mike Fretto, co-founder and creative director of Neighbor.
Starting campaigns to get people buzzing about a product is a great way to spread recommendations by word of mouth. You can also respond to complaints or compliments online to show you provide good customer service, which is another aspect of high product quality.
Did You Know?Did you knowAccording to PwC, 5 in 10 consumers seek out recommendations from friends and family, and 7 in 10 consumers read company reviews to validate an organization before making a purchase.Marketing studies have proven again and again that companies producing high-quality products obtain more repeat business. Spend more time and money upfront to perfect a product before it hits the market if you want to minimize customer complaints and returns.
It’s common for sellers of high-quality brands to spend more to persuade consumers to try their goods. The more successful companies are at pleasing customers during their initial experience with a product, the more likely they’ll be to see repeat purchases from those customers.
Testing products with potential customers or a market research group can help to produce a great product. Most people in these groups will give brutally honest opinions and companies can use that feedback to make improvements to their products. [Check out these 13 tools for conducting market research.]
Aesthetics play a significant role in product quality. How a product looks, feels, sounds, tastes and smells can impact a customer’s perception of its value. For example, MrTakeOutBags prioritizes design and functionality in their food service boxes. The colors, prints, shapes, textures and features, such as handles, make all the difference and it’s what sets the brand apart from its competitors. Customers notice these details and they can make or break a sale. Investing in quality materials and design can elevate the perception of your product.
FYIDid you knowCustomizable features also allow you to give customers exactly what they want while tacking on a few dollars to the price.Studies show a strong positive association between quality and profitability. High quality produces a higher ROI for any given market share, while fewer defects are associated with lower manufacturing and service costs. As long as these gains exceed any increase in expenditures by the firm on defect prevention, profitability will improve. In addition, improvements in performance, features or other dimensions of quality lead to increased sales and larger market shares.
If you have produced a quality product and marketed it effectively, it’s time to see if you can cut costs without sacrificing quality.
Having a high-quality product can increase positive associations with your brand, including desirable qualities like consistency and an understanding of customers’ needs. This, in turn, can strengthen brand recognition and loyalty, increasing the likelihood of long-term success.
“Product quality becomes an identity of the brand,” Garrett said. “The success of a brand is determined by maintaining that identity and staying true to it.”
Additionally, good quality reduces liability as your product is more likely to perform as expected. This helps to minimize the risk of lawsuits and makes certain every customer receives a top-performing product.
“Quality products limit liability,” said Fretto. “A major lawsuit or safety issue with a product could completely destroy a business.”
Did You Know?Did you knowCompanies with ongoing legal counsel are less likely to face costly lawsuits than those without. Learn more about why you should develop a relationship with a business lawyer.Here are a few helpful strategies to ensure high product quality, regardless of your industry or target market.
High product quality starts with determining what’s most important to your brand and staying aligned with those values, according to Garrett. “Is [quality] getting the things quickly and cheaply to the customers that want it?” Garrett asked. “[Or,] is it taking your time and making the best product you can… [regardless of] how much money you spend?”
For premium brands, quality may mean delivering the best possible products, while for economy brands, it could be finding the right intersection between quality, affordability and speed.
A quality management system is a set of business practices comprising the planning and execution of delivering a product. The system includes principles that help to prepare a product for its launch, such as customer focus, leadership, research and evidence-based decision-making.
A product strategy details information about a product and the company’s vision for it. It should include clear key performance indicators and priorities that align with your defined measures of success — whether focused on target customers, the market, competitors or business goals. This strategy serves as a road map for your product’s journey, from creation to launch.
When establishing your strategy, keep in mind you’ll likely need to prioritize certain elements of production over others for quality. “I like to say, ‘Good, fast and cheap: Pick two,’” said Garrett.
>> Read more: Fast, Good or Cheap — The Iron Triangle?
Thinking about your competitors is an important part of developing your product. What are they doing that you aren’t (and vice versa)? How are their products performing? What works for them and why? Answering these questions will put you in a better position to compete with similar businesses in the market.
It’s essential to test every product before launch — ideally with a subsection of real customers — so you can anticipate how buyers might react. Use the feedback from these tests to uncover changes you might need to make before you release it to the public.
“The more you push your product to see what it can take, the better your chances of spotting issues before the public does,” said Fretto.
Once you’ve launched your product, don’t be afraid to ask your customers how you can improve. Top-rated marketing services and survey software can help you quickly gather customer feedback. Use any negative customer feedback to learn more about your consumers and help your products better meet their needs, making adjustments accordingly.
Did You Know?Did you knowQuality is an ongoing process, not a one-time achievement. Always look for ways to improve your product, as what’s considered high-quality today could easily be seen as low-quality tomorrow.After you’ve launched, continually evaluate both your product and its processes to maintain consistent quality. Consider enlisting quality inspectors to monitor for dips in quality, assessing everything from your product’s packaging and physical appearance to functionality. Use their inspection reports to determine where you need to improve.
“The more you can do to learn from the last version of your product, the better you’ll be at creating the next version,” said Fretto.
Miranda Fraraccio and Sean Peek contributed to this article.
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