Acquiring, retaining and satisfying customers
Should a company devote (finite) resources equally to acquiring new customers on the one hand and to retaining existing customers on the other? Both are recognized as being important but they require very different approaches: acquisition requires a company to undertake research to gain information about potential customers, assess their value to the company and allocate resources to attract those with the greatest long-term value. Retention, by contrast, requires the maintenance of relationships with existing customers on the basis of their long-term value.
FAQ: When we talk about satisfying customers what does this mean?
To answer this we’ll consider a number of issues related to the customer, ...
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