Profit vs. Customer Satisfaction


Is profit more important than customer satisfaction in a B2B relationship?

Customer Satisfaction
Profit Maximization
Growth Strategies
Dr. Chris J
80 months ago

60 answers


Hi Chris:
If you're customers are not satisfied, you won't have to worry about profits. They will leave you for another company who will meet their needs. It's just as important that your employees are satisfied. If you treat them right, they will insure your customers are treated the same way. Solving pain points for customers should take the pressure of pricing and lead to higher margins

Mike Colella
80 months ago
Very true, thanks - Dr. Chris 80 months ago
In case of B2B it absolutely required to take care of the customer satisfaction as well as employees satisfaction also. At the same time i. it also responsibilities of companies to look into companies profit for their survival existence and long life to provide continuous uninterrupted qu. quality service. - Er. Jangyadutta 67 months ago
Profit rules - Dr. David E. 67 months ago
Important is the business model."hit-and-run" is also a strategy, if you try once to get the one-time-said. Often this strategy can be found on ebay or Amazon. - Patrick 66 months ago
OMG = how silly! - Dr. David E. 66 months ago
Just BOGO business and sales strategy on eBay! Purchase now. Supplies are limited - CHEESE - Dr. David E. 66 months ago
Ypu may find this on Amazon and Ebay, copies of known products, very cheap. After receiving numerous bad comments, the business continues with a new name. Maybe Amazon and Ebay should look into this to not lose its reputation. - Patrick 66 months ago
Buy a business strategy now - very cheap and successful on eBay and Amazon - Dr. David E. 66 months ago
Actually it is. - Er. Jangyadutta 65 months ago
Name ONE - Dr. David E. 65 months ago
well said. - Er. P.Das 65 months ago
Thanks - Dr. David E. 65 months ago
Yeah that's true.. - RUPAK 65 months ago
DITTO - Dr. David E. 65 months ago

Profit is very important, but there can be no profiting from an unsatisfied customer, because the reputation of every company lies in the hands of customers. Even though there might not be an immediate sale, the value built through customer satisfaction will definitely bring long term profit through equity built from excellent reputation.

Inci McGreal, P.Eng., PMP
80 months ago
Thanks Inci, Long term value building over short term gains - Dr. Chris 80 months ago
Of course, no doubt Dr. Chris. The issue comes us when some the companies try to avoid this initial investment by relying on sales people's existing relationships to sell turning them into lone wolves. This sales model does not have a bright future in B to B selling because it is in reality a person to B selling model, my personal opinion. A lone wolf can not be as good as a pack. - Inci 80 months ago
The company should always look in to customer satisfaction as well as his profit and should continue his product sale continuously, when people will know the positive effect of product and customer satisfaction caring nature of company, at that time that company shall be popular and reputed when new product of that company in market purchased in higher rate in competitive market as better quality. - Er. Jangyadutta 76 months ago
Suppose the customer knows nothing of the product or service. - Dr. David E. 67 months ago
What exactly is satisfaction, then? - Dr. David E. 67 months ago
How long is long term? - Dr. David E. 67 months ago
Profit and customer satisfaction are inter related. If there shall be attention of company towards customer satisfaction there is possibility of quality material production and sales growth shall be possible. So customer satisfaction shall give more profit to company which shall result to more turn over and increase in additional number of customers. - Er. Jangyadutta 67 months ago
So, why are customer service representatives paid so little? - Dr. David E. 67 months ago
Because they are low skilled, commoditized workers - Anthony 65 months ago
Exactly correct - that is how much the company thinks of them and their customers = NOT MUCH - Dr. David E. 65 months ago
Customer Satisfaction goes way beyond any customer service people interactions. I think satisfaction is derived more from the product or service and less so from the transactions and challenges. - Anthony 65 months ago
Correct, low skill is reason of low payment. - Er. Jangyadutta 65 months ago
AGREE with the obvious - Dr. David E. 65 months ago
CS is for problems - Dr. David E. 65 months ago
Yes, Totally agree. We will get long term profit if we have satisfied customers. - Er. P.Das 65 months ago
DITTO-thanks - Dr. David E. 65 months ago
Unsatisfied customers hampers the image of company.. - RUPAK 65 months ago
Sure - Dr. David E. 65 months ago
What is satisfaction, if you're product is specified but your service is not good it doesn't matter, the customer has to use you and your profits are still safe, however in these changing times the end user has a lot of power in changing Specs so a balanced view is needed to protect yourself. - Nigel 61 months ago

How you weigh profit vs. customer satisfaction in a business relationship completely depends on how valuable that customer is to you and your future. I am a big believer that you always take care of your customers as they will be your biggest revenue source via referrals and recommendations down the line. However, there does come a time when some relationships are simply not worth the amount of capital you are expending to maintain that relationship. When that happens, it is time to cut the cord and focus on those relationships that, when cultivated, will produce great results.

Tully Tretschok
80 months ago
I guess, but it is suprising how sometimes unimportant people suddenly become cruicial in a deal - way down the line! - Dr. Chris 80 months ago
Actually it is fully correct. Customer is valuable for company, otherwise company will be no where. However when motive of company and quality product shall make him reputed, a time will come even if that company will cut relationship with customer and only choose profit, at that time customer shall search to purchase product of that company even higher rate and considerable quality product. - Er. Jangyadutta 76 months ago
OK! - Dr. David E. 67 months ago
Thanks however customer satisfaction should be ultimate target of company to survive long. - Er. Jangyadutta 65 months ago
Nothing new here - Dr. David E. 65 months ago
correct. - Er. P.Das 65 months ago
Thanks - Dr. David E. 65 months ago
True. - RUPAK 65 months ago
DITTO - Dr. David E. 65 months ago

Agree with what people have said so far.
Two key General Trends to keep in mind:

  1. It is commonly understood that customers today have more choices most markets they have more options to choose from than ever before.
  2. At the same time perceived 'switching barriers', the inconveniences of changing supplier, are going down in many industries [technology and evolving business practices are facilitating it] 

A third point:
3.Multiple research studies have proven that it is UPTO ~20 times more expensive to acquire a new customer than it is to keep an existing one. (without taking away from the other point made by business model innovation and blue-ocean evangelists that Explosive growth comes from understanding the need of and tapping into NON-customers)
Committed customers have been shown to demonstrate a number of beneficial behaviours, for example committed customers tend to:

  • Buy more often. .
  • Try new products that you may launch
  • Recommend / Refer you. Another key benefit - loyal customers can become your most effective marketing tool (far more trustworthy than salesmen in the eyes of other customers) and they're free.
  • Come to you. A key benefit of establishing a good level of customer loyalty is that you don't have to sell to them, they will come to you when they need a product or service,

The key to these is the establishment of trust based on good service, reputation and image i.e. ultimately called customer satisfaction
In short, other than fly-by-night operators Or one-off factors like scarcity/urgency, high profits can’t be divorced from the idea of high customer satisfaction

Raju Venkataraman
79 months ago
Expensive to acquire a new customer, but they get the discounts and not the established customers. - Dr. David E. 67 months ago
MORE CHOICE? Consider the PP-ACA "choice". THINK: Hobson's Choice economics. - Dr. David E. 67 months ago
Due to more advertising and publicity and sales agencies application services. - Er. Jangyadutta 65 months ago
MAS = Marketing Advertising and Sales is expensive = reduces profits - Dr. David E. 65 months ago
Yeah 3rd point is also true. - RUPAK 65 months ago
Exactly - Dr. David E. 65 months ago

It is more a question of long term versus short term profits in the B2B relationship. In the case of a relationship of a major client of course you are going to forego the profits of a smaller event in exchange for the long term relationship ( plus sales and profits). For example if you have a ten year relationship providing a product for a company like Apple, and you have to forego the profits for one product/service to preserve the long term relationship ( and profits) with them you do it. It’s all about the big picture.

Rick Planos
80 months ago
Thanks Rick - Dr. Chris 80 months ago
To build on Rick's point, an offering that generates low profit per transaction (relative to others in the portfolio) may still contriubte to a more profitable customer than one that may be more profitable per transaction but not as sustainable. Think Costco model as applied to B2B. - Michael 78 months ago
Nice, Rick. - Dr. David E. 67 months ago
Costumer choose immediate profit. - Er. Jangyadutta 65 months ago
NOPE - customer selects PRICE = company may/not earn profits - Dr. David E. 65 months ago
Good Mr. Rick - Er. P.Das 65 months ago
Agree - Dr. David E. 65 months ago
Nice Mr. Rick - RUPAK 65 months ago
DITTO - Dr. David E. 65 months ago

In a recurring B2B revenue business, customer satisfaction absolutely comes first. Each customer is a revenue stream, and the health and profitability of that stream is dependent on customer satisfaction, often across many contact points. It is not unusual that during the customer life cycle that there will be periods of time when a customer becomes unprofitable for various reasons. A satisfied customer provides equity needed to nurture an account back to profitability.

In a non-recurring B2B business, customer satisfaction drives success stories, which drives new customers. Equally important.

David Feidner
80 months ago
Thank you David. Sounds like sensible advice - Dr. Chris 80 months ago
A virtuous cycle - Dr. David E. 67 months ago
Customer satisfaction improve sales growth of company. - Er. Jangyadutta 65 months ago
Customer satisfaction is the first priority - RUPAK 65 months ago
A virtuous cycle - Dr. David E. 65 months ago

Airbnb vs. Marriott, Square vs. ADP, Venmo vs. American Express, Tesla vs. BMW, Dollar Shave Club vs. Gillette, Lyft vs. Taxi, Roomba vs. Hoover, Eos vs. ChapStick, Nest vs. GE. Can you spot the difference?

Adrienne Houghton
77 months ago
YEP-New co., V. established player. - Dr. David E. 67 months ago
Well. Differentiation is certainly important. - Michael Wen 43 months ago

I learned in the beginning of my career from my mentor that each sale or deal you make should be a win-win situation. And this tip is working great for me so far. If you want to be in the business for long, you have to think of customer satisfaction. I don't think if there is any doubt about it. Even if you are looking for a short-term profit, your customer should be satisfied. 

Hitesh Mathpal
80 months ago
It is suprsing how customers come around years later and remember you! - Dr. Chris 80 months ago
Ture Hitesh, untill its Win Win , it will not last longer and no in road for next oppertunity - Fanish 78 months ago
Not always - customer satisfaction may stink but locked into a contract; etc. - Dr. David E. 67 months ago
No thing as true W-W. - Dr. David E. 67 months ago

No profit is never more important than patient satisfaction. If you don't have a satisfied patient base then your profits will be short lived and temporary. However if you have satisfied pts you can grow your metrics from there. It is never easy to do both but always essential for the success and longevity of any owner/operator/business. Moral of the story is if you have happy patients that is the base of which you build your profit....everything else will come. You cannot start the other way around.

Megan Selby ABOC,NCLEC
80 months ago
NOPE - not for patients. They may have to go to a specific skiny network of providers. - Dr. David E. 67 months ago
Customer satisfaction is must to lead - RUPAK 65 months ago
skiny network = Nope; not necessarily - Dr. David E. 65 months ago

Without customer satisfaction there will be no long term profit

Wim Pielage
78 months ago
If company will take care about customer satisfaction at the time of production of products it guaranteed that customer shall purchase their products paying higher rates being quality good and company will get profit and employees will be better remunerated as well as company will last long. - Er. Jangyadutta 67 months ago
Nope; depends on turnover and additional customers; not necessarily satisfaction. - Dr. David E. 67 months ago
You are correct additional turnover and additional customer shall increase profit. Think if quality good shall not be there and customer shall not choose that material how additional customer will be available and what benefit if more produced material sold. Hence it is always advisable in part of company to give attention toward customer choice and preferably their satisfaction. - Er. Jangyadutta 67 months ago
Really - Dr. David E. 67 months ago
Yeah true.. - RUPAK 65 months ago
Always? - Dr. David E. 65 months ago

Profit or customer satisfaction, which is more important?

For a business, profit is more important. One would rather run a highly profitable business with low customer satisfaction (E.g. Telecom) than run one that is generating unsustainable loses while enjoying high customer satisfaction.
For a customer, of course, customer satisfaction is more important. One would obviously want to be treated in a more satisfying way, while dealing with others.

But often times, both these concepts are synergistic. The more capitalistic a market is, the more competition there is resulting in more demand for customer satisfaction. In such conditions, a company can be profitable only if it offers high customer satisfaction.

And since we don't live in a world filled exclusively with either businesses or customers and since both are required for each to survive, we should be trying to promote both profit and customer satisfaction, choosing based on the role we play in each transaction. Openly demanding more profit or more customer satisfaction.

Sharan Amutharasu
77 months ago
Customer does not think about profit. He tries his satisfaction whether product is of better quality available with less price. In this case if company shall always think high profit without caring market competition, it is clear that that business shall be closed. In case his product is only available at him of best quality, customer shall must purchase from him may sale with high profit. - Er. Jangyadutta 77 months ago
OK - Dr. David E. 67 months ago
However there are instances only one company is provideing a product to market and there is no competitor, at that time he is in monopoly to not care for customer satisfaction rather he can also demand more profit. - J N Das 67 months ago
Agree; that is the ultimate goal - Dr. David E. 67 months ago

Not only customer satisfaction is important but emotional connection too. Communicate easily and speak up openly. Be genuine and try to have people excited about your product/service. The brand experience is more emotional than cognitive.

Paolo Beffagnotti
73 months ago
Paolo I could not agree more. - Brad 73 months ago
I order online - emotional connection? Really! - Dr. David E. 67 months ago
Personalized the support, provide with examples from the real world and take the advantage of social could help in this way - Paolo 67 months ago
Coulda, woulda, shoulda = CHEESE - Dr. David E. 67 months ago
I don't think emotion is that much important than satisfaction - RUPAK 65 months ago
Satisfacton is very often emotion = THINK cosmetics = Jewelry = Clothes and perfumes, etc - Dr. David E. 65 months ago
THINK: intangibles, too - Dr. David E. 65 months ago
Very often not always and that single dissatisfaction can really matter - RUPAK 65 months ago
Yes - it can! - Dr. David E. 65 months ago
agree with Dr. David E. Marcinko MBA , emotion and satisfaction are strictly connected. a positive emotion can create satisfaction. - Paolo 65 months ago
Thanks - Dr. David E. 65 months ago

First of all if we don't get customer satisfaction then we will never get satisfied profit..Customer satisfaction in the long run matters. It matters not only to the customer, but even more so to the business because it directly impacts a company's bottom line profits. It is one of the most important components of a company's positive brand image.In my point of view make profit by keeping all your customer satisfied .

Er. P.Das C
66 months ago
What is satisfied profit? - Dr. David E. 66 months ago
Then there must be un-satisfied profit - Dr. David E. 66 months ago
Yeah we are getting profit but our customers are not satisfied.Then that profit is unsatisfied profit I think. - RUPAK 65 months ago
Good view Er. Das - RUPAK 65 months ago
Interesting perspective - Dr. David E. 65 months ago
Thank you. - Er. P.Das 65 months ago
U R welcomed - Dr. David E. 65 months ago

We engage in busness to earn. However, while we are thinking of having profits, we should consider satisfaction of our customers, becase a satisfied customer would be the best adviertisement. And a customer has never been a cstomer if he won't come back. Customer satisfaction makes them come back while bringing in more customer.

Ferdinand Cuaresma
66 months ago
Suppose it is a one time, or sparse sale? - Dr. David E. 65 months ago
Agree with u - RUPAK 65 months ago
Many thanks - Dr. David E. 65 months ago
Agreed - Er. P.Das 65 months ago

How do you define customer satisfaction? Is it price, quality, service or some combination. I suggest without reasonable profit one or more of those factors would suffer over time and satisfaction would decline anyway. There are many cases where a company got into Walmart thinking it was a gold mine but it ended being destructive to the business due to Overbearing demands by Walmart. So my two cents is you cut it right down the middle and weight them equally.

Anthony J
66 months ago
Prioritize your needs, as you mentioned Walmart could be either a gold mine or destructive. The same applies to Amazon as well. - Paolo 66 months ago
WM has been a gold mine - Dr. David E. 65 months ago
Yes true. - RUPAK 65 months ago
I am aware - thanks - Dr. David E. 65 months ago

Maximizing customer satisfaction makes an important contribution to maximizing profitability, although other factors such as cost control, productivity and marketing strategy also impact the bottom line. By maximizing customer satisfaction, you can increase the opportunity for repeat sales to customers, while reducing the cost of sales and marketing. Customer satisfaction helps to increase customer loyalty, reducing the need to allocate marketing budget to acquire new customers. Satisfied customers may also recommend your products or services to other potential customers, increasing the potential for additional revenue and profit.

65 months ago
Finally - thank you - Dr. David E. 65 months ago
Customer satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectation.Customer satisfaction means "the number of customers or percentage of total customers,whose reported experience with a firm, its products, or its services exceeds specified satisfying goals. - Er. P.Das 65 months ago
Also depends on competition and new entrants - Dr. David E. 65 months ago

Making profits is important but we need to understand that Satisfied customers have an indirect impact on profitability when they share their opinions with other consumers. You only gain profits when satisfied customers recommend your products or services to other potential customers. Working towards the goal of customer satisfaction will only increase profitability if customer expectations are reasonable and consistent with the level of service that the business can provide relative to the prices it charges.

Egwuenu precious
45 months ago

Customer satisfaction is key to the success of any business as products and services are what brings income and they are consumed by Customers. Satisfied customers are likely to bring in 10 new customers while an unsatisfied customers are likely to prevent another 50 from patronizing the business. Satisfied customers are your best Ambassador as a business entity and you must do everything to gain more of such consistently.

Oladokun Ajilore
45 months ago

Successful companies focus on customer satisfaction, Satisfied customers may also recommend your products or services to other potential customers, increasing the potential for additional revenue and profit for your company.

Odunola Ajilore
45 months ago

I would say indeed consumer satisfaction is more important if we are looking at a long perspective. At a later stage no consumer satisfaction will reflect in no profit

Paolo Beffagnotti
80 months ago
Again; how long is LT? - Dr. David E. 67 months ago
If single company is there and he does not care for customer and demand more profit, it is sure that competitors shall come to existance and business shall be statrted. If new company shall provide product with customer satisfaction and with reasonable rate it is must the 1st company shall be closed. - J N Das 67 months ago
If, ands, butts and/or coconuts! - Dr. David E. 67 months ago
There has to be some minimal levels of both profit and customer satisfaction for basic survival. Maybe the question should be prefaced with "beyond the bare minimum" for simplicity. I think the big variable is the unit ness and value of the offering. There are a lot of people unhappy with cable providers but are captive and continue to be gouged and poorly served. - Anthony 66 months ago
Of course - Dr. David E. 66 months ago
Just let the market place decide the tipping point - Dr. David E. 66 months ago
Indeed the marketplace will decide it but it should be better to avoid it - Paolo 66 months ago
How can avoid - can u predict? R U prescient? - Dr. David E. 65 months ago

I personally do not believe in short term relationships. It would be nice to sell at list price but it would probably be a one time sale at great margin! We are always conscious of what our competitors prices are and we sell to be competitive and make the most profit possible. If you are establishing a relationship profit may have to be lower to get in the door. After you prove your product is better and so is your service the customer will then pay more. It is always a balancing act as your competitors will always be at your heals.

Mike Brace
80 months ago
No ST relationship GUARANTEES no LT relationship! - Dr. David E. 67 months ago
Which may be perfectly fine. - Dr. David E. 67 months ago
Now it is a peculiar situation coming to the market that businessman of particular product are making association and sale product in equal rate as per decision of association. At this time behavior of retailer, advertisement and status of business center shall attract attention of customer to purchase material form them. Here quality/price of product are equal.But relationship has high value. - J N Das 67 months ago
Yeah. Name one? - Dr. David E. 67 months ago

The common saying "Consumers are god" will be wrong, if a long-term relationship with the consumer can not be build. Business will make profit only when consumers are around. Keeping the consumers throughout the life cycle of product/brand is a very difficult job. Consumer satisfaction and profit goes hand in hand. If consumers are happy with offerings of the product, consumers are ready to pay. Therefore, it is better to focus on the product quality and offering that consumer need (think consumer first) before thinking about making profit. As Mike rightly said it a Balancing Act between profit and consumer satisfaction.

Samares B
80 months ago
AGAIN - No ST relationship GUARANTEES no LT relationship - Dr. David E. 67 months ago

Intelligent consumers are almost immune to marketing now. There's a quote I use a lot in my innovation and invention work, it goes...

We used to make people want things, now we make things people want.

I think this beautifully sums up the customercentric business/product/service design era.
I also highly recommend reading Clay Christensen's new book 'Competing against luck'.
His 'Jobs to be done' theory is simply brilliant.

Don Smith
80 months ago
Sell wants; not needs. - Dr. David E. 67 months ago
A needless tautology! - Dr. David E. 67 months ago

Only in a "hit-and-run business" customer satisfaction would not play a role to maximize the profit. And even here customer satisfaction became relevant, as we are living in times of social media. Unsatisfied clients are much more communicable than satisfied ones and will comment on Facebook, Twitter, Amazon, eBay or other relevant platforms.

To maximize the client satisfaction companies do not need to offer the best product or service, but an adequate one. The quality should be on the same level, as the potential buyer would estimate it; in an ideal situation the it would be a little bit higher.

Patrick Henz
79 months ago
OK - Dr. David E. 67 months ago

no customer no profits that is simple! Customer satisfaction builds loyalty and is the mesurable of how well you are doing! A repeat customer is profitable

Normand Ciarlo
79 months ago
Agree! The central point from all the discussion is make the customer happy by exciting them with unique quality desired service. To be successful, there is no compromise in this front! - Samares 79 months ago
No profit = Amazon in business since 1994 - where is the profit? - Dr. David E. 67 months ago
Amazon has delayed profit in order to invest and conquer more and more markets. They are making profit now and will make a lot more eventually. - Anthony 65 months ago
How long is eventually? - Dr. David E. 65 months ago
THINK: JM Keynes - Dr. David E. 65 months ago
I can't answer how long that is but I know it is a function of their strategic growth plans. If you're Jeff Bezos or an Amazon worker do you really care? They are making plenty of money in salary and stock options. Investors in the stock are making money. Perhaps they found a new model of minimal tax liability and high growth. They are a platform company and so the tail is long. - Anthony 65 months ago
Stock appreciation is not profit = little to none thus far - Dr. David E. 65 months ago
Short explanation but good one - RUPAK 65 months ago
thanks and true - Dr. David E. 65 months ago
They have revenue and cash flow. Profits can easily follow when you have that and is simply a matter of management priorities. - Anthony 65 months ago

I love this topic. Here is why; Companies get into business to make profit, Customers want to be satisfied by their vendors, both want to squeeze value from the equation.
In my opinion (i'm sure not the first or only one to have it), customers seeking cheaper prices for a better product or service, drives the industry to think & act differently.
This breaktrough thinking is what has changed the way we live today - Henry Ford bring automobile ownership mainstream with the Model T, Tesla making electric cars mainstream...

Matthew Theocharous
78 months ago
NOPE-Tesla got HUGE government handouts. - Dr. David E. 67 months ago
NOT free market competition at all! - Dr. David E. 67 months ago

I think that customer satisfaction is the prerequisite to have profits. What someone needs to consider is that satisfied customers do not guarantee profits and cash flow without a proper strategy and tactics that will aim to make to company not only the best partner for its customers but also best investment for its investors. I think that defining the unique selling proposition and mission of the company, doing a proper market segmentation and aligning the available resources around this are among the critical first steps.

Christos Assimakopoulos, MBA, FCCA
78 months ago
NOPE-THINK The US VA health system. - Dr. David E. 67 months ago

Another point, I'd like to make is while customer satisfaction is a key to making profits, it is not the only key. Customer Segmentation [on a regular basis] is critical and tailoring the service levels for different segments is another element.
Else monies will get frittered away and profitability will be negatively impacted in the blind search for 100% customer satisfaction.

And another aspect to keep in mind is the potential viral spread of customer opinion in this 'social media crazy' world - especially bad opinion spreads faster. So even with those so-called unprofitable segments, an organization has to be careful in the manner of handling customer complaints.

No easy answers!

Raju Venkataraman
78 months ago
Agreed. - Dr. David E. 67 months ago
Good point.. - RUPAK 65 months ago
Nice.agreed - Er. P.Das 65 months ago

you might be interested in reading this book
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Purpose: How To Drive Revenue and Do Work That Makes You Proud.
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Raju Venkataraman
78 months ago
A sale - is a sale - is a sales man/woman. - Dr. David E. 67 months ago

Companies operate because they want to make profit. Customer satisfaction is important because it ensures long & short term profit. However, companies must consider a few things before fine-tuning their strategies:

  1. Maintaining high level of customer satisfaction can be expensive. While the common wisdom is to go for customer satisfaction at any cost, companies have to be careful as that might bring down profit. One way to make sure that cost of customer satisfaction doesn't outweigh revenue generated from that customer is to keep a close eye on the customer lifetime value.
  2. Customer satisfaction is about managing expectations. From every product, be it a B2B or B2C, consumers expect some basic features. In most cases, there are 2/3 features which buyers look at before making a decision. The minimum requirement from companies is to meet customer expectations for those features. So, instead of changing a lot within a product or company, the business should identify 2/3 features which customers value the most and try to exceed expectations on those.
Mofrad Muntasir
78 months ago
Well, said. - Dr. David E. 67 months ago

Obviously, customer satisfaction is more important than profit. After all, satisfaction usually leads to a customer returning and buying more. Repeat, loyal customers tell other people about their experiences, and they may well pay a premium for the privilege of doing business with a supplier they trust.
Whilst the purpose of customer satisfaction research is to improve customer satisfaction and loyalty, so often B2B customer surveys sit collecting dust. Worse than that, customers have generously given their time to assist in the survey believing that some positive action will take place. Their expectations will have been raised. The process of collecting the data can seem easier than taking action to improve satisfaction levels.
In any customer loyalty research there will be quick fixes – actions that can be taken today or tomorrow that will have immediate effect. In the longer term, cultural changes may well be required to improve customer satisfaction and customer loyalty, and that is more difficult.

Abhishek Raj
78 months ago
Yes - Dr. David E. 67 months ago

based on my experience in management consulting with close to 30 y of experience we can deliver both customer satisfaction and profit from our customer engagements ,this is where repeated business comes from ,yes it does requre more brain power .long night and working on weekends and lots of talking and explaining but at the end when work is well done it does make me personally very happy and proud

amit patel
78 months ago
OK - Dr. David E. 67 months ago
Well said...great work ..keep it up - Er. 66 months ago
I know - thanks - Dr. David E. 65 months ago
Good points - Er. P.Das 65 months ago
T U greatly - Dr. David E. 65 months ago

As an author, I just introduced an e-book, Common Drug Related Terms and Acronyms.  available online at Amazon Books (( .
It was a relatively simple and easy process, very helpful advice, etc. that made the experience worthwhile continuing the B-2-B relationship with Amazon.
Finding ways to establish a mutually beneficial relationship has always been a challenge or a eureka moment when you find a true partner.

Randy Vogenberg, PhD
78 months ago

does make sense

amit patel
78 months ago
Indeed - Dr. David E. 67 months ago

In my considered opinion, customer will not think about profit of producer, rather he will choose different organizations where product is comparatively of good quality and eco frieldly and suitable for him to get in less price. However profit and consumer satisfaction are inter related to each other, so that organization can improve its marketing and earn more profit, if they look in to consumer satisfaction by providing good quality product in less price.

Er. Jangyadutta D
78 months ago
OK - Dr. David E. 67 months ago
agreed.Thank you - Er. P.Das 65 months ago
DITTO - Dr. David E. 65 months ago

Interesting seeing this question after a recent tweet I made on LL Bean. While the tweet was more about B2C, it has B2B relevance.
Most know by know that LL Bean has done away with lifetime warranty and recently they cancelled a project on "personalization via IoT," which in my view was another example of short-sighted profit focus over long-term customer data mining. I was very surprised that LL Bean actually responded to my tweet and that a few other people chimed in disappointed at LL Bean.
What does all this have to do with B2B? The exact same scenario can apply in B2B - companies should view their customers from a lifetime value perspective (as stated earlier in this discussion) and be sensitive to doing things that can be interpreted as being less customer-friendly. For example, instead of halting their lifetime warranty, did LL Bean explore different channel options as a way to implement this? Shift the ownership of this to partners as a win-win? LL Bean makes more margin for ecommerce deals (assuming their implementation and systems make this a true statement) so how about looking at channels (e.g. retail) and shift responsibility there? Would the retailer embrace this? They might if they could promote buying from them as a way to preserve that lifetime warranty.
The same general concept, looking to channels, might also have helped with their personalization via IoT project...shared gain.

Gates Ouimette
77 months ago
Thanks - Dr. David E. 67 months ago
I actually like that LL Bean changed their policy. People abused the policy to turn a purchase into a perpetual ownership right of a given product category. No product lasts forever. I think the new policy may go too far in the other direction but now at least it is approaching an honest and reasonable expectation. - Anthony 65 months ago
Hybrid solutions - Dr. David E. 65 months ago

The subject "Profit vs. Customer Satisfaction" and "Is profit more important than customer satisfaction in a B2B relationship?" are very important thing in business world and market as well as they are inter related to each other. No one can survive without support of other term.

In my opinion Customer satisfaction with less profit is possible when there is competitors in the market. If the product is available in market and is with high demand at that time without customer satisfaction high profit may be taken.
But is common process it is no so easy to take high profit without customer satisfaction when material of high quality is plentifully available in market. If company shall show monopoly without caring customer and competition, it is sure that company will be closes.

Therefore it is absolutely required to look in to market need, customer satisfaction and position of competitors and there after we can only think about profit. That does not mean that company shall neglect to its profit. If there shall be no profit company shall no develop or survive. Therefore profit with customer satisfaction and market competition and market need of quality product is absolutely required for adequate management to have a better business entity.

Er. Jangyadutta D
77 months ago
Customer satisfaction and profit both are necessary in business. - Er. Jangyadutta 77 months ago
PLEASE: Don't shout! - Dr. David E. 67 months ago
No Amazon proft for 20 years? - Dr. David E. 67 months ago

Looks like you opened a can of worms Dr. Jeffs, replies are interesting, a few somewhat scattered off the underlying
I would like to share my input regarding:
Is profit more important than customer satisfaction in a B2B relationship?
So without trying to read too much into the question and everybody has their own definition of 'profit' and in what context is relevant; profit in terms of having the same profitability percentage providing a product/service to another business as you would to regular customers (are we considering comps, discounts, perks, corporate rates, ect.) and when we say 'satisfaction', are we referring to the satisfaction that a business expresses in receiving a favorable price point versus being satisfies with all goods & services rendered minus a B2B rate. Off the bat, lets assign 'satisfaction' as a given, a constant irregardless of B2B, regular customers, first time customers, that life-long customer and as such, whatever is the quality standard for our services, then that is what everybody receives (of course we fill in the gaps to have all demographics of the customer base' buy ensuring a service that is personable making the customer feel appreciated-thats showmanship)

I encounter this frequently first hand as a business owner & operator of our family business of Personal Chef Services specializing in Onsite Taco Grill Cart & Buffet Party Event Services. I have almost the same percentage of Businesses seeking my services as private parties and initially this has been a challenge. I had your exact question thinking I had to provide a business a special rate (as they view me as the 'wholesaler' of the good & services that they are passing onto their employee parties, customer appreciation days, business grand openings, real estate opening, back to school night, city facility functions, ect) and even since my business customer were actually acquiring my services as a treat for a third not being a direct revenue source for asides from the intangible benefits. Furthermore having just launched my business barely 2 years ago, I jumped into a higher quality network offering a higher service standard but at lower price point to build my customer base. So, essentially giving lower pricing to a business almost was not even breaking even and at time into the red.
Then I remembered the words of my culinary career mentors...from a non-profit director, she stated that even a non-profit must draw a profit, to be profitable in order to continue to provide the charitable service- it doesn't mean to turn in a perfect Profit & Loss Statement/Cash Deposits or whatever accounting system you measure profitability; but to stay in business.

Therefore my strategic action plan now entails the following (I hope this might bring you relief if you are challenged with making your business contacts feel 'special' and yet stay profitable and making your regular customers not feel like they don't get the same treatment because they are just an 'individual'

  1. First and foremost, we do not allow ourselves to be placed in a situation where we do not have the time, resources, finances and product to service our customers to the quality standard of our brand. In other words, I get calls from businesses that just want something quick, cheap and just to put out for their employee party or business affair- I won't do it and not because there is no money in it or the cost but because the service I render is a direct reflection upon and our brand reputation because someone will ask for the business card of the caterer and upon seeing my product, that person will be disinterested. And this also reflects upon the business as well and has actually

created better B2B business for me aligning our catering business with quality conscious business who are willing to
spend and expect a higher standard.

We use showmanship that works for our customer base...the customer who is always calling us does pay the same price as a new first timer but we know all the pet peeves of our regulars, we know their personal preferences and make their service feel really personable because it is. Fortunately my customer many are in million dollar homes and live well, its not about the money, its all about being there for them. For my first timers, I express my gratitude in 'proving to them and showing them that we can champion their service' and for the appropriate businesses, I can waive the state required tax and not expect any gratuity and that in itself compensates for the lower price. But its your showmanship where to discover the perks, bells & whistles you can provide to each business customer to make them feel appreciated and a personable service-sometimes with a simple but sincere, warm-hearted thank you and name acknowledgement. Unfortunately it sometime challenging to have your hired employee feel the same way as you do with your business customers but some coaching or finding ones who care is very possible.

77 months ago
Basic stuff. - Dr. David E. 67 months ago

It seems this is not an either-or question. To have a successful business, we need both. Assuming the business enterprise is viable then satisfied customers will lead to profit. There is so much complexity in the market we need to be cognizant of many different processes and functions.

Michael K
75 months ago
Actually, it waxes and wanes. - Dr. David E. 67 months ago

I learned a long time ago that People + Process = Business Results. Focus on meeting and exceeding customer requirements (wowing the customer) and business results (profits) will follow. That said, one must ensure pinpoint accuracy in defining customer requirements, expectations and the competitive landscape. Implement those strategies with a direct link to elevating customer satisfaction and retaining base customers and keep a close eye on analytics to ensure expected business results.

Del I
74 months ago
Pretty Aphorism - Not always true. - Dr. David E. 67 months ago

FedEx has a philosophy...People-Service-Profit. They have a track record to prove it works. If you depend on repeat business and you are not the only game in town then service must be a priority. Profit is a reflection of what has happened...history. It can be utilized to look at what needs to be fixed, but it should not be fixated on or used as a way to justify slashing. It should be used to learn. When the P&L and balance sheet becomes so important that a business forgets what made them stand out in the marketplace and why customers were drawn to them in the first place that business is in trouble. It is a sign of deterioration. Of course you need a profitable business model, but you also need customers...satisfied customers.

Brad Federman
73 months ago
FedEx P.S.P. is based on creating a valuable work environment, then this will improve service quality for client. - Paolo 73 months ago
Yes that is correct...partially. People-Service-Profit is a priority setting what is most important. If we take care of our people and help them provide good service profit will follow. So service comes before profit. And people come before service. - Brad 73 months ago
So, why minimum wage - not true. - Dr. David E. 67 months ago
Fedex may have felt that way once upon a time but now they are not good on many fronts. They are losing and will continue to lose in their space. - Anthony 65 months ago
Rise and Fall - Up and Down - Profit and Loss, etc = Business Cycle - Dr. David E. 65 months ago

The argument isn't either/or.
You need both to stay--and to thrive--in business.
In my opinion, the smartest tactic is to DESIGN your operation to deliver value to your customers through the experience you give them. Then ENGINEER the experience to produce a profit for the business (without killing the experience in the process ;-)
PS: Going in the other order (profit first), it's difficult to achieve a higher-value experience because, well, there's no resource left to experiment with.

Mike Wittenstein
73 months ago
It has been evident from different instances that if addequate business plan , employees welfare implimentation of modern tecnology and customer satisfaction with brand awareness shall be ideology of company, there shall no complication on the part of owner to produce quality material and through more sale more profit will be there and company shall work for long period. - Er. Jangyadutta 67 months ago
Say what? - Dr. David E. 67 months ago

Agreed with Mike. Profit is mandatory and customer satisfaction allows you to get your desired profit. Notice I specifically did not state “maximize profits.” Create your target, build solutions that exceed that target and work from there.

Gates Ouimette
73 months ago
NOPE: Suppose customer satisfaction costs more than the product or service? EPIC FAIL? - Dr. David E. 67 months ago

In case of B2B and customer relationship It has been evident from different instances and reports of companies that if adequate business plan , employees welfare program, implementation of modern technology and customer satisfaction with brand awareness through media shall be ideology of company, there shall no complication on the part of owner to produce quality material for expansion of more sale with marginal profit, there shall be no interruption in part of company to work for long period with popularity.

Er. Jangyadutta D
67 months ago
What? - Dr. David E. 67 months ago

 In case Company manufacture quality product/goods taking care of customer interest and more customer shall choose more quantity of a particular product of a company that material shall create additional customer and turnover shall also increase accordingly and benefit shall be more out of produced material sold. Hence it is always advisable in part of company to give attention toward customer choice and preferably their satisfaction.

Er. Jangyadutta D
67 months ago
"always advisable in part " = not logical - Dr. David E. 67 months ago

Progressive companies always give attention towards Profit and customer satisfaction which are very sensitive and inter related issues in business planning management marketing and sales growth which depend on company reputation and product popularity in market . If there shall be attention of company towards customer satisfaction there is possibility of quality material production and sales growth shall be possible. So customer satisfaction shall give more profit to company which shall result to more turn over and increase in additional number of customers

Er. Jangyadutta D
67 months ago
If the product stinks - no customer support tactics will drive sales. - Dr. David E. 67 months ago
Lipstick on a pig - Anthony 65 months ago

In B2B relationship actually profit is more important than customer satisfaction however if there is customer satisfaction aspect has been given attention by the company it is guaranteed that the product shall be sold in higher rate and additional customer shall be there which shall be resulted to more turnover of company.

Er. Jangyadutta D
67 months ago
guarantee = Nope - Dr. David E. 67 months ago

Exactly If product stinks and quality of product smells bad and customer shall not choose pleasantly the material to use it is completely impossible of sales growth and promotion of product marketing.

Er. Jangyadutta D
67 months ago
OK - Dr. David E. 67 months ago

Profits and customer satisfaction go hand-in-hand. Over the long-term one cannot exist without the other: No profit, no business; no customers, no profit, no business. This may be oversimplifying things, but these are truths that cannot be ignored. Unless you are running a monopoly, or perhaps an oligopoly, if customers are not satisfied, you are not likely to retain them. Even if a business is capable of keeping up with high customer turnover, the long-term effect is there will not be any new customers to churn. All this said, if a business has customers and competition but is not profitable in the long-term, it will not be able to support operations and the customers that keep it alive. While it is true a business may be unprofitable yet have cash flow to support its activities, that is not true forever.

A business may survive unprofitably for a time (assuming a positive cash balance) if its customers are happy, but as a new business, there must be a plan to get to profitability before cash runs out. Customer satisfaction is the tip of the spear if the business is to have a chance at achieving profitability. Mind you, under most circumstances, funders will eventually quit funding an unprofitable company if there is no pathway for an exit or payback, so business leaders should not exceed funders' patience in this regard.

James B
67 months ago
It is true when there shall be no profit in the company at that time in anticipation of loss of their investments, at that time funding Agencies, investers and bankers shall discontinue their support and choose to invest in a profitable company. - Er. Jangyadutta 67 months ago
YES = Common sense - Dr. David E. 67 months ago

It is need of company to take care of profit for company so that employees investors and funding Agency shall prefer to work with company with more cooperation. However it is also to plan for the company for its all round development to produce quality environment friendly product for customer satisfaction at that time rate should be reasonable. So that customer always prefer particular product in competition marker being good quality and genuine price. At that time company shall continue always and additional customer shall be there and turnover shall increase in number and employees will cooperate more when future of company is good.

Er. Jangyadutta D
67 months ago
OK - Dr. David E. 67 months ago

While we are thinking about profit and customer satisfaction at that time it is matter of peculiar thinking that when businessman are producing particular product like jewelry/ornaments and at the time of marketing that if they have association or there is Govt rule to sale product in equal rate as per decision of association. At this time behavior of marketing agent or sale depend on marketing more material and it also possible through advertisement and marketing style or status of business center which shall attract attention of customer to purchase material form them. Here quality/price of product are equal.But relationship has high value for profit and customer satisfaction. 

J N Das
67 months ago
You must know your market- - Dr. David E. 67 months ago

As everyone has stated: this is not a zero sum game.

I'll just point out one fundamental that is worth remembering: there exists a sub-segment for which your business offering is most appreciated. It's that person for whom customer satisfaction is most important.

Good targeting to that segment cuts down cost per $ of revenue, which ultimately drives profit. This is because they will be more receptive to your maketing, they'll be more likely to buy again, they'll be more likely to refer business, they'll be more likely to buy more products or services in the portfolio.

Outside of that segment (or immediately adjacent segments in behavior or attitude), the other potential customers are both harder to satisfy, more expensive to attract and retain, and less likely to spend more in future. Don't sweat trying to keep those folks satisfied (unless it happens organically when keeping your main customer segment deeply in love with you).

AJ Rollsy
66 months ago
Common sense - thank you - Dr. David E. 66 months ago

Customer is GOD for any Business .

This is the era of digitalization ,In this era every one is looking for online shopping,online ordering,home delivery etc .So to satisfy these requirements of customers lots of marketplaces are came in picture.Due to heavy competition it is important to take care of your customer.
Some points why customer satisfaction is important.

  • If customer satisfy with your service definitely he/she will come again for more services.
  • Best marketing strategy in this world is 'mouth to mouth' marketing,which can be possible if you are giving some customer a good service and he/she will satisfy and tell to his/her friends,relatives,family members to take your service with a positive feedback.Which give a good impact on your business because just imagine if you give a good service to his/her friends ,again they will tell to their friends,relatives and family members.It is a never ending chain marketing process which required only good behaviour and satisfaction service towards every customer.
  • Profit is more important as well for a business,But if you won't get more and good customer how you will increase your profit balance.Again if you are keeping very less margin on every product and you have a large no of customer it is enough to cross the profit balance level easily.
  • So keep doing profit by keeping all your customer satisfied.
  • For customers "If you unsatisfied please tell us and if you satisfied please tell others"

Please do comment below for any queries and suggestions.
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Thank You

Er. B
66 months ago
Word of mouth is 5 times more effective than a paid media and it is easier to keep customers satisfied than not retrieve the unsatisfied ones. - Paolo 66 months ago
Well said Paolo ,it's is better to invest in customer satisfaction rather than marketing in social media and newspapers. And one more thing for this reason only you will see very less no of advertisements of branded like Mercedes, Audi, Ferrari.Beacause they know their value and their customers as well. - Er. 66 months ago
I appreciate. - Er. P.Das 66 months ago
Right BISWAJIT SAHOO, know your customers is one of the key - Paolo 66 months ago
Definitely paolo , customer plays a vital role in business models always. So for a business man the customer support part is more important than the marketing part. - Er. 66 months ago
Assistance in install, mantain, upgrade the products, customer support can make everything more effective - Paolo 66 months ago
No marketing = No business = THINK: Nike! - Dr. David E. 66 months ago
Crisis management - Dr. David E. 66 months ago
marketing fiasco - Dr. David E. 66 months ago

You'll have no profit if you have unhappy customers.
You'll grow your business with satisfied customers, and kill your business if you focus on the wrong priorities.
Loyalty is hard to find.

Karen Bluestein
63 months ago

Every company has a customer in some form or fashion. Its always a matter of how are we serving the customer. What have we done as a company to streamline our effectiveness at allowing the customer to have a positive experience. If our relationship is B2B or direct to consumer how have we managed to streamline communication and efficiency of the structure of our business to allow that customer ease of use or ease of engagement with our organization. In a business environment where options are at our fingertips its the ease of doing business that keeps the customer and will open the door to potentially more profit. Make it sticky companies will pay more for less stress.

Matthew Kessler
62 months ago

One of the worst bosses I ever had told us "Volume Cures All"... I disagree. If your customer satisfaction numbers are terrible or declining... the last thing you want are MORE customers having the same terrible experience. Sometimes you have to take a pause and listen to what past customers are telling you--and improve it... before you start shaking the trees for more customers/profit. Positive word of mouth and an amazing customer experience drives profits... just ask Chick-fil-A.

Rick J. LoCastro
60 months ago

In a thriving business ecosystem there are different kinds of customers- external, internal, partner & CSR. Ensuring customer satisfaction & delight maximization for all these different customer types ensure that an organisation keeps galloping ahead overcoming speed bumps and even severe challenges associated with product lifecycle changes. Transforming customers into brand advocates, market intelligence providers and revenue sources is a great byproduct of well managed customer relationships. Hence every person in the organisation should have customer centricity as part of his duties that need to be reviewed in their quarterly performance appraisal. Even support functions like HR, Finance, Logistics that have vendors can leverage these to splash good brand advocacy social media posts (on what a great experience it is to do business with this company). Marketing orientation to customer satisfaction management is the way forward that makes customer delight efforts & innovation revenue smart in the immediate and long term

Anshumali Saxena
57 months ago

It has to be a balance between the two. Without profit you won't be able to keep your doors open - without customer satisfaction, you won't have any or many customers and won't need a business. Balance them both and it will lead to success.

Avis Bray
57 months ago

Depends on whether the business is long term / relationship based or one-time transaction. No harm in profit seeking / making as long as there is no compromise with delivery of product service. The satisfaction for client might be derived from closing the deal at desired price hence not always rational.

Abhijit Bhavsar
55 months ago

It is simply that businesses that pay attention to the customer experience have greater returns and profits than customers that do not. Take a look at the American Customer Satisfaction Index that has outperformed the market.
Fred Reichheld, one of the creators of NPS, has a stock portfolio that has outperfomed the Vangard.
Pay attention to the customer experience and pay even more attention to the employee experience. Both will propel a business forward.

Patty Soltis
14 months ago

Have some input?