Customer Acquisition Cost
April 3, 2025
Customer acquisition cost is the cost which suppliers invest to acquire a new customer. This cost should be always less than the overall value of customer in the entire customer life-cycle. For example, if the cost incurred to acquire a customer is $10, but the contribution of the customer to the profit is only $9…
Business always starts and closes with customers and hence the customers must be treated as the King of the market. All the business enhancements, profit, status, image etc of the organization depends on customers. Hence it is important for all the organizations to meet all the customers’ expectations and identify that they are satisfied customer.…
Customer acquisition is the process of acquiring new customers for business or converting existing prospect into new customers. The importance of customer acquisition varies according to the specific business situation of an organization. This process is specifically concerned with issues like acquiring customers at less cost, acquiring as many customers as possible, acquiring customers who…
According to the market evidences following are the main determinants of customer retention:
If the customer expectation is very high and the provided product or service does not meet his expectation then the customer will obviously not purchase that particular product again. Hence one of the key facets in determining retention is the deference between the quality of the product or service provided and the customer’s expectation. The organization must always try to optimize the balance between quality of product and expectation from customers.
For example, shoppers and retailers are engaged with frequent shopping and credit cards to gain customer loyalty, many high end retailers also provide membership cards and discount benefits on those cards so that the customer remain loyal to them. All the important marketing strategies results in customer retention.
Customer service is the reaction by the organization to the queries and activities of the customer. Dealing with these queries intelligently is very important as small misunderstandings could convey unalike perceptions.
Success totally depends on understanding and interpreting these queries and then working out to provide the best solution. During this situation if the supplier wins to satisfy the customer by properly answering to his queries, he succeeds in explicating a professional and emotional relationship with him. Hence customer service is one of the most influential determinants of customer retention.
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