Which of the following is true regarding customer retention?
A)Research has proved that existing customers tend to be less profitable than new customers.
B)The only accurate metric that calculates customer retention is the number of repeat customers.
C)A retention strategy increases the number of loyal customers, but provides no return on investment.
D)Attracting new customers is often more difficult and expensive than retaining existing ones.

Question

Quizplus · Accepted Answer

Attracting new customers can be more difficult and expensive than retaining existing ones. Therefore, it is important for businesses to focus on retaining their existing customers by implementing effective retention strategies rather than solely relying on attracting new ones. Option A is incorrect as research has shown that existing customers tend to be more profitable than new customers. Option B is incorrect as there are various other metrics that can be used to calculate customer retention, such as customer lifetime value. Option C is incorrect as a retention strategy provides a return on investment through increased customer loyalty and repeat business.

Which of the Following Is True Regarding Customer Retention