Marketing Assignment Help With Customer Retention alongside Customer Acquisition

4.5.Customer Retention alongside Customer Acquisition

It has been suggested that it costs up to five times as much to win a new customer as it does to retain an existing customer. The costs of capturing market share are not always easy to gauge, but there are many companies who now regret earlier strategies based on the blind pursuit of volume. While there is strong evidence for the link between market share and profitability, there is equally strong evidence to show that it is the quality of that market share that counts. In other words, does the customer base comprise, in the main, long established, loyal customers, or is there a high degree of customer turnover, or ‘churn’? If the latter is the case, then the chances are the company is not as profitable as it might be.

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