@robbie32 - I agree. I’ve often heard that it takes more effort to win a new customer than it does to keep a customer that you have.
I don’t have the numbers handy, but there’s a certain ratio that describes the difference between the two approaches. Smart companies are always working hard to keep their current customers happy in my opinion.
Unfortunately, some industries are a bit more demanding in that regard. Take cell phones – or the entire telecommunications industry for that matter.
The rate of churn among those customers is very high, with the cut-throat rates offered on phone calls by competing provides, and even alternative technologies like Voice Over Internet Protocol, which enable you to make calls for free.
Calculating customer lifetime value in those industries is a tricky proposition indeed.