BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Acquiring a new customer can cost five times more than retaining an existing customer. Increasing customer retention by 5% can increase profits from 25-95%. The success rate of selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is 5-20%.

Detailed explanation-2: -A significant factor in the difference in cost is that consumers tend to buy from brands they trust. This is why it takes a lot more effort to convert a new customer than to hold a loyal one.

Detailed explanation-3: -Customer Retention Cost (CRC) is how much you spend to keep one customer buying from you for as long as possible. CRC is the cost of customer retention over a specific time.

Detailed explanation-4: -The cost of acquiring new customers is five times higher than the cost of retaining existing customers. While acquisition allows you to increase the amount of customers you have, customer retention allows you to maximize the value of customers you have already captured.

Detailed explanation-5: -One analysis shows that a 5% increase in customer retention results in a profit increase of 25% to 95%, with 65% of a company’s purchases coming from returning customers. Another analysis found that retaining customers is seven times less expensive than acquiring them.