This research paper's is to illustrate the relationship between the customer loyalty derived through the satisfaction and enlargement of profitability of firm. The loyalty can be increased through the various services and strategies adopted by the firm for proper satisfaction of their customers. Many authors are proposed to loyal customer as competitive assets to be preserved and one of the ways to enhance this cooperation is through an intimate strong relationship between companies and buyers. In today's competitive business marketplace, customer satisfaction is an important performance exponent and basic differentiator of business strategies. However, a satisfied customer may be or may not be loyal but an unsatisfied customer potentially seeks other options and may migrate easily. Hence it is important for the supplier to identify dissatisfaction factors and develop corrective measures to cope up with. A satisfied customer mostly tends to be a loyal customer hence customer satisfaction is an important factor that increases customer loyalty and further profitability of firm.