PeoplePeople

The people that a customer comes into contact with, and the service they provide can have a direct effect on customer satisfaction and loyalty.

Part ofBusiness managementMarketing

People

The people element of the extended refers to any member of staff who is in contact with the customers of a business.

Customers are important to a business. They are the people who buy the goods or services it provides.

If customers are not satisfied...

  • then the business will not be able to sell its goods or services...
  • therefore no profit will be made...
  • ...and the company may go out of business.

Customer satisfaction relies on good . This is provided by the people who work for the organisation.

A cafe provides a case study on the importance of good customer service to a business.

The people (employees) who a customer meets before, during and after they have purchased a good or service can have a direct effect on whether customers will purchase from the company again.

If customers receive a good quality service...

  • they will be more likely to return (customer loyalty)...
  • which will lead to increased sales and profits
  • It would also mean that customers do not take their business to competitors.
Customers out shopping
Image caption,
Satisfied customers will continue to use a business and contribute to its profits