Frederick Reichheld of Bain & Company found that the cost of acquiring a new customer is 6 to 7 times more than the cost of retaining an existing customer. Yet so many companies focus the majority of their time, energy and resources on acquiring new customers at the expense of retaining the customers that they already have.
Clearly the maturity stage of your business has an impact on your strategy; if you’re a new business, your focus should be on acquiring new customers. However, if you’re a more mature business that is focusing your strategy on customer acquisition, beware. You may be creating a problem.