Cost of customer acquisition vs customer retention
What is the cost of acquiring a new customer compared to the cost of keeping an existing customer?
There is no definitive answer to this question, but most sources say the answer is that it costs between 4 and 10 times more to acquire a new customer than it does to keep an existing one. Some sources say cost of acquiring a new customer is over 30 times that of keeping an existing one.
A key element in the cost is probably the industry or market sector your customers are in.
The sources below list various figures for the cost of retaining a customer vs acquiring a new customer. The ‘cost’ in the sources listed here ranges from 3 to 30 times.
“It is generally recognised that acquiring new customers costs between 4-to-6 times more.” This article includes a lifetime value calculation formula.