A company should try to retain a customer only as long as the cost to discourage defection is lower than the lost profit.

Question

Quizplus · Accepted Answer

It is not always cost-effective to retain a customer if the cost of retaining them is higher than the revenue they generate for the company. The company should evaluate the cost of retaining a customer against the potential profit they can bring in, and if it outweighs the cost, then they should try to retain them.

A Company Should Try to Retain a Customer Only as Long