The Importance of Customer Satisfaction in Relation to Customer Retention and Loyalty

Customer satisfaction plays a vital role in influencing customer retention and customer loyalty which is important for businesses to understand the service quality and strategies applied by the firm. The objective of this paper is to comprehend the impact of customer satisfaction in relation to customer retention and customer loyalty. The study conducted through the given research work helped us in understanding the mindset and behaviour of college students of parts of the city of Bangalore. The study would further uncover the gaps which exist between the mindset of the customers and businesses and how it would have an influence on the satisfaction level of the customer. The reason for choosing this topic is to understand how business enterprises give importance to pricing, customer handling, management quality, etc and their influence on customer satisfaction. The findings revealed that customer satisfaction has impact on customer retention and loyalty and also leads to factors like profitability and non-monetary benefits to the company. The results of the study assist the firms in understanding how customer satisfaction can lead to change of their approach towards the customers and meet their needs. The study also sets scope for further research and highlights whether the customer satisfaction is sole reason for loyalty and retention or whether it varies in intensities depending upon different sectors