Need help with my writing homework on Customer Aquisation Versus Retention. Write a 1250 word paper answering; Other statistics reason that a business’ 80% sales are just gotten from about 20%, which spells out the critical need for the business to maintain health relations with these loyal customers. It is easier for the retained relations to communicate over a business’ brands than new customers. They therefore play a critical role of tracking the progress of the business in terms of quality standards of commodities as well as the services. Moreover, findings from a report by Reichheld indicate that retained customers eventually buy a lot from this business and as a result, the business records higher profits. The operating costs in serving retained consumers tend to be lower than the costs for serving new consumers. Retained customers are also better placed to refer and bring other customers on board than is the case in new customers. Businesses therefore analyze the profitability of retaining all the customers but the cost effectiveness analysis dictates that a business should strive to maintain the only segment of customers that prove more profitable than the rest (2001, p. 1). Nevertheless, globalization trends are seen to adversely affect the efforts of retaining customers as the internet has opened a whole view world of advertising and promotion. Via just a click of a mouse, it is possible to lose a retained customer. Therefore, the efforts of retaining a customer get more expensive and complicated.
