Question

T/F: It costs five to six times as much to get a new (first-time) client as it does to keep a current one.

Answer 1

True, acquiring a new client typically costs five to six times more than retaining an existing one, due to higher marketing and sales expenses on new customer acquisitions.

Step-by-step explanation:

The statement is true. It generally costs five to six times more to acquire a new client than it does to retain an existing one. This principle is well-established in the realm of customer relationship management and marketing. The reasons for this include the costs associated with marketing, sales efforts, and the cultivation of new client relationships. Existing customers, on the other hand, usually require less marketing spend and are more likely to purchase additional products or services based on their previous experiences.