Customer Satisfaction Benefits to Business to the Actual Extent That t Literature review

Essays on Customer Satisfaction Benefits to Business to the Actual Extent That the Client Satisfaction Will Lead to Repeat Deal Literature review The paper â€Å"Customer Satisfaction Benefits to Business to the Actual Extent That the Client Satisfaction Will Lead to Repeat Deal" is a thrilling variant of a literature review on marketing. According to Allan et al (2001), relationship marketing is a process of trying to attract clients and in so doing enhancing the relationship between the company and the clients. Customer Retention, on the other hand, is an approach by an organization to have clients willing to come back for more every time, for an organization to succeed in customer retention, the current and past customer behavior should be considered as the two will greatly influence the client’s future behavior.It is good to note that customer/consumer satisfaction will not be an end in itself to the purpose of any business and/or organization. Since according to Frederick (1996), customer satisfaction will only be of benefit to the company/business to the actual extent that the satisfaction of the client will lead to repeat business in the future. This implies that the only when the customer does come back for more is customer satisfaction considered viable to the business; this contradicts the assertion by Frederick (1996), that consumer loyalty bears no fruit.Customer satisfaction entails a clear distinction between the satisfied customers, the satisfied and those who are not sure whether their needs have been met or not. The distinction thus brings out the issue of satisfaction and loyalty to a business and/ their products. The difference between the two is that one is a product of the other and in business the main aim is to try as much as possible to retain your clients and this means that a business whose sole purpose is to make their customers happy is most likely to incur losses since the same could have been got through low prices. On the other hand, if a business aims at retaining its clients; then they will try and make them happy but not by offering extravagant discounts (Wong, 1 999).For the businesses, the issue of customer/consumer loyalty is very important since it has a very tremendous effect on sales and profits. On average, a company within the United States will lose half their clientele in a span of every five years, this will equate to 13% of their annual loss of customers. The same company will thus be fighting a losing battle over the years since as per the annual looses; their customer base is diminishing faster than they can retain their customers. This average company faces an uphill battle when trying to grow because its customer base keeps draining away. If the same company is able to achieve a minimum of 1% annual growth; it would thus require they increase their sales to the few remaining and/or new customers by 14%. This goes a long way to prove why the issue of reducing customer loss within any given business may significantly improve their business growth (Carrol, 1992).The other thing worth noting is that if and/or when consumer loyalt y increases, the issue of marketing and investment becomes very efficient and easy for those concerned. Furthermore, when the company has been able to learn its loyal customer’s profiles it then stands to gain a higher caliber of newer clients having excellent lifetime value to their business. The increase of customer retention by a mare five percent can notably raise the business profits by 50% and/or more.