When we talk about customer retention in the marketing world, the same principle applies: Smart brands understand that it costs much less to retain a customer (in marketing speak, this is known as the LTV or Customer Lifetime Value) than it does to acquire a new one (customer acquisition cost or CAC). In fact, a mature customer retention policy is not just money saved, but money earned.
A recent KissMetrics case study revealed that it costs six to seven times more to acquire a new customer than it does to retain one.
