Balance Between Customer Acquisition and Customer Retention
Erika Jones, Business Consultant, United Kingdom, Member
In any type of business, you have to make a balance between customer acquisition and customer retention.
Customer acquisition means to gain a new customer. Customer acquisition is important to get in new consumers as well it enlarges the base.
On the other hand, customer retention generally less expensive and builds loyalty and the brand. Retention is also helpful to maintain a long-term relationship and long term costs are regained through sales.
For the effective analysis of the business, you should analyze the ROI for both customer acquisition and customer retention. If the ROI ratio is bad in either approach then it implies that more research is required for improvement. You might also implement loyalty management software.