Customer Retention versus Customer Acquisition


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Essay #: 053678
Total text length is 7,682 characters (approximately 5.3 pages).

Excerpts from the Paper

The beginning:
Customer Retention versus Customer Acquisition
This paper compares and contrasts the cost of customer retention versus the cost of customer acquisition. The paper first draws a broad overview of the differences between customer retention and customer acquisition (they are primarily self-explanatory) and the activities associated with each that are likely to bring about costs for the firm. From there, the paper then delves into some of the broad types of relationships that characterize the pre-sale and post-sale periods for business to business exchanges/sales and business to consumer transactions; the real significant finding here is not that business-to-consumer (B2C) relationships and business-to-business (B2B) relationships differ...
The end:
.....omer retention appears to be a cheaper exercise than customer acquisition; both have their costs, but returning customers are more dependable sources of revenue and actually demand the expenditure of fewer resources on the part of the company.
Pfeifer, P. (2005). The optimum ratio of acquisition and retention costs. Journal of Targeting, Measurement and analysis for Marketing, 13(2): 179-188.
Redcatco, Ltd. (2009). The business of relationships. Retrieved August 25, 2009 from
Tobler, N. (2008). The MLM/Relationship marketing affair. Retrieved August 25, 2009 from