Customer Satisfaction Importance

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Customer satisfaction plays a vital role in the progress of your business. It is a marketing term determines how products or services supplied by a company meet or outdo a customer’s expectation. Customer satisfaction is considered important because it provides marketers and business owners with a standard that they can use to administer and improve their businesses. It also helps the marketers to monitor their businesses. Thus, it is important on the part of the marketers and business owners to understand the importance of customer satisfaction.

The below given reasons will help you to understand why customer satisfaction is so important in a business:
• It is a chief indicator of consumers’ intentions of repurchasing and loyalty: Customer
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Satisfaction from the availed services plays a major role in deciding the consumers’ contribution into revenue generated for the business. Successful business owners understand the significance of the customer lifetime value (CLV). If you can boost CLV, than you can increase the returns on your marketing investments. It is a recipient of high customer satisfaction and good customer maintenance. You need to identify what you should do to keep customers coming back and spending more on your…show more content…
To get new customers, you need to pay six to seven times more in comparison of retaining the existing consumers. Businesses spend thousands of money in receiving the attention of targeted customers, nurturing them into successful leads and finally closing them into sales. But if you fail to retain these hard-earned customers, than you are sure to lose a huge amount of money.
• Still the question remains why then you spend little or no money at all on customer retention. Just imagine that you have invested one sixth of your marketing budget on customer retention. What do you think? Will it help you to improve your services to satisfy your customer completely?
• Sometimes companies are misled by the concept that customers rely on them. However, the truth is that we are very much dependent on them. Many research studies and academia have highlighted the significance and importance of customers in the success of a business in today’s market.

It has been stated that the level of customer’s satisfaction has a positive effect on profitability of a

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