Asked by Ashley Mercado on Jul 24, 2024
Verified
According to experts, getting a new customer costs five times more than keeping a current customer.
New Customer
An individual or entity that has not previously purchased or engaged with a company's products or services.
Keeping A Current Customer
The strategies and practices aimed at maintaining and enhancing a continuing relationship with an existing customer to ensure their repeat business.
- Recognize the importance of customer retention compared to the cost of acquiring new customers.
Verified Answer
AE
Addie EanesJul 29, 2024
Final Answer :
True
Explanation :
This statement is true. According to research by Frederick Reichheld of Bain & Company, it costs five times more to acquire a new customer than to retain an existing one.
Learning Objectives
- Recognize the importance of customer retention compared to the cost of acquiring new customers.
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