The Secrets of Success in Marketing

2

A lifetime together – the

true value of long-term

customer relationships

IT’S COMMON KNOWLEDGE that it costs more to win new

customers than retain existing ones. Customer acquisition

should never be neglected, because exist-

ing business may decline for reasons outside

your control. However, industry experience

indicates that existing customers make a

comparatively greater contribution when

marketing costs are taken into considera-

tion. A measure called ‘lifetime customer value’ can help you

identify the customers you really want to keep by compar-

ing the cost of acquiring and managing individual customers

with their purchase ...