Organizations' Strategies to Satisfy Customers and Outshine Competitors - Essay Sample

Introduction

Many organizations consider developing techniques and strategies that seek to improve their performance and realize their long and short-term targets. The success of an organization depends on the ability to satisfy customers so that they can be brand ambassadors. However, because of competition in various sectors, some businesses employ crude techniques that focus on outshining the competitors, but they focus on the short-term effects (Mayo 2). For example, they can engage in misleading advertisements that are not accurate only for customers to realize that they do not get value for their money. Conversely, other companies consider applying accurate messages, although they may not be appealing compared to some misleading information. In perfect market competition, the assumption is that customers are rational and they make rational decisions (Horowitz 3). As a result, there is a debate about if companies should be honest with their customers or not. Nevertheless, strategies organizations apply depend on what they want to achieve in the long-run. The research seeks to find out if organizations should be honest with customers.

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Research Aim

The paper seeks to find out if companies should be honest with their customers in all aspects of their professional relationship. Although some companies succeed by providing customers with slightly misleading information, they do not succeed in the long-run because clients shun their products and services the moment they realize that they are not getting value for their money and they were duped to buy the items. Therefore, the research paper will provide critical information about being with the customers.

Research Questions

• What are the reasons for being honest with the customers?
• What problems are associated with being honest with the customers?
• What are the strategies that promote honest with the customers?

Reason for Being Honest With Customers

Various organizations become honest with customers because they want to build trust and brand loyalty. Companies build a strong working relationship with their customers the moment there is trust. In the process, many customers will appreciate and do business with the company and they will talk positively; thus, turning them into brand ambassadors. Consequently, trust helps to secure future market share because the company will attract and maintain the customers (Horowitz 55). There will be repeat customers and this contributes to organizational success. Therefore, companies must embrace methods and strategies that build customer trust, such as being honest since this will create a competitive advantage.

Furthermore, being honest to customers helps companies to manage impatience among customers and build understanding. Companies should make customers understand everything going on regarding their purchases. For example in the restaurant industry, service people should inform customers about the progress of their orders in case they take longer than expected. They should understand the reasons why their orders are taking longer to manage anxiety and this will build a good relationship (Horowitz 146). Therefore, honest breeds understanding and this keeps customers satisfied and they will be willing to return to the organization when they want to make other purchases. A mutual understanding between customers and companies would create an opportunity to develop services, leading to a competitive advantage.

Customers can only be willing to provide their feedback when the company is honest. The best way managers understand customer expectations is by talking with them. Consequently, companies should develop and implement techniques that motivate clients to provide feedback that can be positive or negative. However, they can only be willing to do this when the company is honest and always providing accurate information (Horowitz 55). Therefore, managers will not have trouble requesting for feedback that helps in the decision-making process. In this regard, companies develop their services for better customer satisfaction based on the feedback they received from the customers.

Finally, being honest with the customers promotes brand image. Customers are conscious and they are only willing to do business with a company that promotes ethical behavior. Since the strategy turns customers into brand ambassadors, they will improve brand reputation that eventually attracts and retains customers (Deibert 2). Customers have options where they can products and services; hence, they can walk away from any company they feel is engaging in fraudulent activities. Therefore, being honest with the customers promotes brand image, creating a source of competitive advantage.

Problems Associated With Being Honest With the Customers

Although being honest with the customers is a good business practice, it may have some negative sides. Some companies intentionally omit some information from the customers, aiming to boost their sales. Posting shortfalls of the company could scare away customers and they may not be willing to trade with the company (Deibert 3). The company might have corrected its previous mistakes but some customers may not understand that and could think that the business is only doing that to promote sales. Therefore, it is essential for companies not to provide all details to the customers since they may ruin the image of the brand scaring away customers.

Secondly, some companies intentionally omit some information to make customers comfortable when buying products and services. For example, some companies may include features and designs in their products and services but are necessary for effective performance. Although the features do not pose any risk to the users, customers want to be informed of everything, especially the negative effects of the items. In this context, some companies do not disclose these facts because some customers cannot feel comfortable; hence, it is a good reason not to disclose all material facts that may lead to negative perceptions and attitudes (Horowitz 27). Therefore, companies should not disclose all facts that may affect the customer buying behavior, as long as the information does not pose any danger or affect the value of the product or service.

Strategies to Promote Honest With the Customers

Organizations apply various strategies to build honest relationships with their customers. The first technique is managing customer expectations. Arguably, different clients have different expectations. They require different attention, and support that influence their buying behavior (Mayo 1). Therefore, the marketing team should collect and analyze what customers expect, and develop techniques that would enhance their satisfaction. In the process, they will be convinced that management is committed to their satisfaction and success, and this will build a trustworthy relationship.

Secondly, companies should build and grow from negative feedback. More often than note, organizations take negative reviews wrongly. They become reluctant in solving potential complaints from their clients. However, successful organizations take negative reviews seriously since they promote the ability to understand levels of customer expectations and organizational weaknesses (Mayo 2). Therefore, companies should act on negative reviews and improve on client complains and this will improve customer attitude since they understand that the company's efforts to solve their problems. While responding to negative reviews, organizations should communicate and inform clients so that they understand the efforts and this will attract them to the company since they know that the company is interested in solving their problems.

Finally, the marketing and communication managers should be consistent with the information they disseminate to the clients. The information should not only be accurate but also timely to help customers make informed decisions (Mayo 2). They should communicate about the quality and material used to make a product. In the automobile industry, manufactured vehicles should perform to the expected standards. Customers will shun the company and its products once they realize that they do not perform to the expected standards as prescribed. In this way, clients will build the trust required for an organization to succeed.

Recommendation

Based on the research findings, organizations should be honest with their customers because it is the only way they can enhance their competition but balance the interest of different stakeholders. For example, being honest with the customers promotes building a trustworthy relationship since customers develop a positive attitude towards the company. Also, being honest with the consumers helps to turn clients into brand ambassadors, and manages customer expectations (Mayo 2). However, companies should not disclose all information, especially the negatives because they may affect customer attitude and eventually organizational sales. The purpose is to boost sales as well as delivering value to customers by making them comfortable since the kept information do not pose any danger to their wellbeing.

Works Cited

Deibert, Ashley. Why authenticity in marketing matters now more than ever. Forbes.2017. Web. 20 April 2020.

Horowitz, Shel. Principled profit: Marketing that puts people first. Northampton: AWM Books. 2003. Print.

Mayo, Jason. How to build honest relationships with clients. Forbes.2019. Web. 20 April 2020.