Customer satisfaction is a marketing term that measures how products or
services supplied by a company meet or surpass a customer‘s expectation. Customer
satisfaction is important because it provides marketers and business owners with a metric
that they can use to manage and improve their businesses.
In a survey of nearly 100 senior marketing managers, 71 percent responded that
they found a customer satisfaction metric very useful in managing and monitoring their
There are some reasons why customer satisfaction is so important for any
developing organization. First and foremost thing is that it is leading indicator of
consumer repurchase intentions and loyalty. Another and the second most important
factor is, it reduces customer churn. Customer satisfaction also increases customer
lifetime value and reduces negative word of mouth. It is cheaper to retain customers than
acquire new ones.
Most of the companies make a huge mistake, when they are not paying enough
attention to their customer satisfaction. Keeping customers satisfied is the best
competitive advantage against competitors. Customers are loyal, prepared to pay more
and are excellent external marketers.
here Is A List Of The Reasons For Developing Long-term Relationships With
Acquiring new customers can cost 5 to 10 times more than the costs involved in
satisfying and retaining current customers.
- Loyal customers tend to spend more and cost less to serve
- Satisfied customers are likely to recommend your products and services
- Retaining exiting customers prevents competitors from gaining market share
- A 5 percent reduction in the customer defection rate can increase profits by 25 to
85 percent, depending on the industry.
Title -Mapro Project
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