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YES IT IS. A happy customer means repeat business, referrals for new business and more importantly, enhanced brand equity.
Customer trust and retention are the most important assets of building a business and keeping the reputation great.
My answer is NO! An important case study to recall involved BlockBuster Video. Several years ago, BlockBuster released a "no late fee" campaign, which ended in the company's bankruptcy. In a move to compete with the growing Netflix, the video rental giant announced in 2005 that it was rescinding its long-despised late fees. In reality, the late fees remained, since movies not returned by a certain date meant the renter was charged for the entire cost of the film. When the movies were eventually returned, the customer was refunded the money, minus a $10 restocking fee.The campaign consequently was investigated in 48 states, and Blockbuster was eventually forced to reimburse the states more than $600,000 for the costs of the investigations.It was beginning of the end for Blockbuster. The company not only reinstituted its late fee policy in 2010, it also filed for Chapter 11 bankruptcy and closed more than 500 locations.
So, making customers "satisfied" is one thing, and ensuring that the process in doing so does not impede on the business's financial stability is another.
