One of the main objectives for any business is to maximize profits. While maintaining a healthy balance sheet depends on a combination of factors, one of the most important for consumer brands is product quality.
If you sell high-quality products consistently, your customers will keep coming back. If your quality deteriorates, they will quickly find an alternative.
Consumers will often buy what they perceive as higher quality, even if it costs more. And as a quality control and assurance company, we’ve seen firsthand just how much businesses have riding on good quality management. So here we offer some thoughts on what product quality is and give five essential reasons for its importance.
What is Product Quality, Really?
Product quality can mean different things to different people. Some consumers think of high quality as long-lasting or durable. Others look at it in terms of efficiency and usability.
Nobody wants to buy something then spend half an hour figuring out how it works. Most importantly, a quality product has to solve the customer’s need or problem. It is your prerogative to ensure that your product meets all your customer’s needs as a business.
If you are a new entrepreneur looking to start your brand, you must understand the intricate relationship between product quality and profits. Similarly, existing brands with a steady customer base must put in place measures to improve and maintain product quality.
Why is it Important to Produce a Quality Product? 5 Top Reasons
#1 It Boosts Customer Loyalty
Customer loyalty can be described as a buyer’s desire to do repeat business with a particular brand. If you sell consistently high-quality products that meet your customer’s expectations, they will have no reason to go elsewhere.
If a consumer is loyal to your brand, they may be willing to pay more for a product they are familiar with and love. They will also likely give you genuine feedback to improve your product or service and recommend you to their friends and family.
If you have logistical problems such as delays in shipping, they will be more accommodating and willing to wait.
#2 It Reinforces Brand Reputation
Brand reputation refers to how other people perceive your business. Having a good reputation is crucial for your business, and you can ensure this by maintaining product quality.
In today’s highly connected world, consumers often go online to show off new buys and share their experiences. Studies show that 45% of buyers will share positive experiences online (Sprout Social).
In the same way, the majority of consumers conduct an online search before making a purchase decision. If they find that your brand has positive reviews, they are more likely to buy from you, thus boosting your sales.
#3 It Reduces Complaints, Returns and Product Recalls
Over the years, we have witnessed big brands such as Toyota, Samsung, and many others conduct costly product recalls and struggle to restore consumer confidence. Recalls are often a result of poor-quality products that do not meet relevant safety standards.
Aside from recalls, poor-quality products can result in customer returns or complaints. As noted, today’s consumer will share their purchase experiences online. If they buy a substandard product, they are likely to share this too. Returns, recalls, and customer complaints can cause irreparable brand damage.
#4 It Gives You a Higher ROI
Manufacturing high-quality products can cost more in the beginning. High-quality raw materials, more efficient production methods, and product quality inspections are investments. However, bringing high-quality products into the market ensures customer satisfaction and retention.
Research shows that existing customers have a 60-70% conversion rate, while new ones have a 5-20% rate (SendPulse). In other words, it is cheaper to keep the customers you have than to get new ones.
Happy consumers will post their experiences on social media and recommend your products to friends and family. And word-of-mouth recommendations are likely to result in more sales.
#5 It Helps Your Business Meet Set Standards
Some industries, such as furniture, electronics, or juvenile products, have a set of quality and safety standards or regulations that must be met. If you are manufacturing a product for these industries, you will be required to meet them or risk heavy fines.
It is crucial to be aware of these standards from the beginning and meet them. This is where product quality and regulatory compliance intersect. Conducting laboratory tests as part of your quality control efforts will help ensure a positive company image.
Take the Right Steps to Ensure Product Quality
Managing product quality is an essential aspect of running a successful business. For the most part, it is a continuous process that starts with selecting the right factory and having a proper quality management system.
Here are some recommendations to help you accomplish this:
- When selecting a supplier, visit in person or conduct a factory audit to help ensure that they can meet your requirements for product quality.
- Rather than relying totally on your factory to ensure quality, develop your own quality control plan so you can hold them accountable to specific requirements.
- When sourcing from overseas, either go to the factory in person or hire a third party to conduct a product inspection before your order ships. That way, you can deal with any unexpected quality issues before it is loaded into the container and spends a month on the water before it gets to you.
As a business, one of your main objectives is to make profits. As you think about your brand, you must understand the relationship between price and quality. Often, a high price does not necessarily translate to quality products. To understand this relationship better, download our Price vs. Quality Guide here.
Download Your Free Price vs. Quality Guide
Importing goods from overseas makes sense for many importers due to the low costs of production. However, this doesn’t matter much if you receive low-quality goods that you can’t sell to your customers. It is essential to take all the necessary steps to balance price and quality. Our free Price vs. Quality Guide gives deeper insight into how to navigate these waters.