Final answer:
The true statement is that it costs significantly more to acquire a new customer than to retain an existing one, indicating the importance of customer retention for long-term profitability and stable income.
Step-by-step explanation:
The statement that is true about customer retention and customer life expectancy is D) In general, it costs five times more to replace than to keep a customer.
High levels of customer retention are actually beneficial for profits in the long term because retaining existing customers is usually less costly than acquiring new ones. Furthermore, as customer retention increases, the customer's life expectancy with the company typically increases as well, leading to more opportunities for the company to sell its products or services to the customer over time.
It has also been observed that businesses that focus on customer retention often see increased profits and more stable income streams.
Customer retention refers to the ability of a business to keep its customers over a period of time. It is generally more cost-effective to retain existing customers than to acquire new ones, as acquiring new customers can be costly in terms of marketing and advertising expenses.
By focusing on retaining existing customers, businesses can reduce their customer acquisition costs and increase their profitability.