Question

It is _______________ to get a new customer, then to retain an existing customer?

1) more costly
2) much less costly
3) more cost effective
4) none of the above

Answer 1

It is more cost effective to retain an existing customer than to acquire a new one.

Step-by-step explanation:

The correct answer is 3) more cost effective.

It is more cost effective to retain an existing customer than to acquire a new one. This is because acquiring new customers often involves higher costs, such as advertising, marketing, and sales expenses.

On the other hand, retaining existing customers is generally less costly as it requires maintaining good customer relationships, providing quality products or services, and offering loyalty programs or incentives.