Newly acquired customers are likely to be unprofitable because of the cost of the marketing and sales efforts necessary to acquire them.

Name: Newly acquired customers are likely to be unprofitable because of the cost of the marketing and sales efforts necessary to acquire them.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The initial cost of acquiring new customers, which includes marketing and sales efforts, can often exceed the revenue generated from these customers in the short term, making them unprofitable initially.

Newly Acquired Customers Are Likely to Be Unprofitable Because of the Cost