In this article, you will learn about an interesting B2B practice in which customer retention is contrasted with customer acquisition. What is more expensive?
In detail, distribution costs naturally differ from company to company. However, there are two steep theses in the generalization, which also appear again and again in the literature:
1. Acquiring a new customer is ten times as expensive as retaining an existing one.
2. In most cases (in B2B sales), the initial order from a new customer does not cover costs.
Interestingly, there are many citations for both theses in the literature on sales and marketing, but hardly any scientific studies.