Customer Retention vs. Customer Acquisition

Traditionally, customer acquisition has often been a focal point of marketing campaigns, with significant resources directed towards attracting new customers. However, a deeper understanding of customer loyalty economics reveals a surprising fact: the cost of acquiring a new customer can be up to five times higher than retaining an existing one.

Not only is it more expensive to acquire a new customer, but new customers also tend to spend less and are less likely to buy additional products compared to loyal, existing customers. This underlines the importance of customer retention and its cost-effectiveness in comparison to customer acquisition.