Final answer:
According to Roland Rust and his colleagues, it costs five times more money to acquire a new customer than to retain a current customer. This concept is known as the customer acquisition cost (CAC). By focusing on customer retention strategies, businesses can save significant resources and improve their bottom line.
Step-by-step explanation:
According to Roland Rust and his colleagues, it costs five times more money to acquire a new customer than to retain a current customer.
This concept is known as the customer acquisition cost (CAC) and it is an important metric for businesses to consider. CAC refers to the total cost involved in convincing a potential customer to make a purchase or become a subscriber.
By focusing on customer retention strategies, such as providing excellent customer service, loyalty programs, and personalized offers, businesses can save significant resources and improve their bottom line.