Importance of customer satisfaction 1. It costs around five to ten times more attract a new customer than to keep an existing one. 2. Company can boost profits anywhere from 25 to 125% by retailing merely 5% more existing customers, 3. Only one out of 25 dissatisfied customer will express dissatisfaction. 4. Happy customer tell 4 to 5 others pf thei positive experience. Dissatisfied customer tell 9 to12 how bad it was.a Main benefits of customer satisfaction 1. Customer stay with the company longer. 2. Customer deepen their relationships with company. 3. Customer demonstrate less price sensitivity. 4. Customer recommend company’s products or services to others.Company that achieve high customer satisfaction rating make sure that their target market knows it. 1. First, the company can increase customer satisfaction, by lowering its price pr increasing its services but this may result in lower profits. 2. The company may be able to increase its profitability in other ways, such as by improving its manufacturing. 3. The company has many stakeholders include employees, dealers, suppliers and stockholders. Spending more to increase customer satisfaction would divert funds from increasing the satisfaction of other partners. Ultimately, the company must operate on the philosophy hat it is trying to deliver a high level of customer satisfaction.For customer centered companies, customer satisfaction is both a goal and a marketing tools. It is the key metric for evaluating the performance of the business. Without customer satisfaction, old customer are being lost as fast as new are won. Some companies treat their customer as unsophisticated and sell them outdated or inferior goods, like motorola does by selling outdated cell phones to its customer. This conduct of company leads to decrease in the market shares as the dissatisfied customers switch to other brands (samsung, apple, vivo etc.) Dissatisfied customer by words of mouth will tell 8 to 16 others about their dissatisfaction. With the help of internet, some of now telling thousands. About 90% of dissatisfied customers never purchase goods or services from company again. If an immediate efforts is done to resolve the issue relating to customer’s dissatisfaction, about 80% of them result in as repeat customer.A customer could experience one of the these broad level of satisfaction. 1. If the performance fall short of expectations, the customer is dissatisfied. 2. If the performance matches the expectations, the customer is satisfied. 3. If the performance exceed expectations, the customer is highly satisfied. Expectations are formed on the basis of the buyer’s past experience, statement made by friends and marketer and competitor’s information and promises. If the marketer rises the expectations too high and fails to deliver, the buyer is likely to be disappointed. On the other hand, if the company sets expectations too low, it won't attract enough buyers although, it will satisfy those who buy.Not satisfied but do not ERAN other option DISSE iT-te] customer Highly satisfied and create word of mouth publicity Satisfied but may look for other optionCustomer Satisfaction “Customer satisfaction or dissatisfaction is the feeling derived by the consumer when he compare the product’s actual performance with the performance that he expect of it”. Customer form their expectations on the basis of past experience, advice of reference group and promises of the marketer and their competitors. Satisfaction is the level of a person’s felt state resulting from comparing a product’s perceived performance in relation to the person’s expectations. Thus the satisfaction level is a function of the difference between perceived performance and expectations.