Customer Aquisation Versus Retention Essay Example | Topics and Well Written Essays - 1250 words

Customer Aquisation Versus Redecadetion - Essay ExampleOther statistics reason that a parentage 80% sales are skilful gotten from about 20%, which spells out the critical need for the descent to maintain health relations with these loyal customers. It is easier for the soundly-kept relations to communicate over a business brands than impertinently 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 high profits. The operating greets in serving retained consumers tend to be lower than the costs for serving new consumers. Retained customers are also disc unload placed to refer and bring other customers on board than is the case in new customers. Businesses therefore discerp the profitability of retaining all the custom ers but the cost effectiveness analysis dictates that a business should strive to maintain the only segment of customers that prove to a greater extent moneymaking 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. On the other hand, the supporters of the customer care reason that there is no more growth.... g one customer through promotional services and sales as to being ranging from six to ten times higher than the costs that the business would incur in retaining a customer. 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 intern et 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. On the other hand, the supporters of the customer accusation reason that there is no more growth that can result from an already retained pool of customers than has already been met. This therefore