Question

The marketing cost of retaining customers is much higher than the cost of replacing them. True or false

Answer 1

false. Retaining customers tends to be more cost-effective in the long run.

Step-by-step explanation:

The statement 'The marketing cost of retaining customers is much higher than the cost of replacing them' is false.

Retention marketing involves strategies and activities aimed at keeping existing customers engaged and loyal. While it is true that acquiring new customers can be expensive due to the costs of advertising and attracting their attention, retaining customers can also incur costs such as customer service, rewards programs, and ongoing communication.

However, retaining customers tends to be more cost-effective in the long run because loyal customers generate repeat business and referrals, reducing the need for continuous marketing efforts.