Antoine is in charge of customer acquisition and retention. He allocates more of his budget to customer retention than customer acquisition. Why does Antoine's decision make sense?
A) Low customer turnover is correlated with higher profits.
B) High customer turnover is correlated with higher profits.
C) Low customer acquisition is correlated with higher profits.
D) Low customer acquisition is correlated with higher employee satisfaction.
E) High customer acquisition is correlated with higher employee satisfaction.

Question

Quizplus · Accepted Answer

Low customer turnover, which means retaining customers over time, is often more cost-effective than acquiring new ones. Retained customers tend to buy more from a company over time and can also provide valuable referrals. This can lead to higher profits due to reduced marketing and sales costs, as well as the potential for increased sales volumes.

Antoine Is in Charge of Customer Acquisition and Retention