Keeping Existing Customers is NOT Always Better than Acquiring New Ones!


 
Customer Loyalty > Forum > Keeping Existing Customers is NOT Always Better than Acquiring New Ones!

Keeping Existing Customers is NOT Always Better than Acquiring New Ones!
Annalisa Cordoba, Manager, Spain, Member
A fundamental assumption of customer loyalty models is that keeping existing customers is less expensive than acquiring new ones. Buchanan and Gilles (1990) provided several reasons why increased profitability is associated with customer retention efforts (see the summary of customer loyalty).
But I wonder, are there also circumstances in which keeping existing customers is equally or more expensive than acquiring new ones?
My thinking is for example that in the internet age, the costs of acquiring (new) customers may be so low, that avoiding the hassle of keeping existing customers may be a better option sometimes....Sign up
 

 
Keeping Existing Customers is NOT Always Better
Jaap de Jonge, Editor, Netherlands
I agree with you.
On top of the internet example you give, you can also think of existing customers that are (no longer) profitable. It would be ...Sign up 9-5-2019
 

   
Special Interest Group Leader

Interested? Sign up for free.


Customer Loyalty
Summary
Forum
Best Practices

 



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2019 12manage - The Executive Fast Track. V15.0 - Last updated: 20-5-2019. All names of their owners.