Companies focus on building loyal relationships with existing customers as retaining customers costs must less than acquiring new ones.

Question

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It is generally true that companies focus on building loyal relationships with existing customers as it costs much less to retain customers than acquiring new ones. Acquiring new customers often involves significant marketing and advertising expenses, while retaining existing customers through good customer service and loyalty programs can be more cost-effective in the long run.

Companies Focus on Building Loyal Relationships with Existing Customers as Retaining