Guiding Principles (DUPLICATE)

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 Tip

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2. It fuels recommendations.

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?

According 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.

3. It results in fewer customer complaints and returns.

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.]

4. It appeals to consumers who care about aesthetics.

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.

FYI

Customizable features also allow you to give customers exactly what they want while tacking on a few dollars to the price.

5. It produces a higher return on investment (ROI).

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.

6. It strengthens your brand.

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.”