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The conventional wisdom throughout retail-industry circles is that it costs significantly more to acquire new customers than to retain old ones. In fact, among financial-services companies, there is reliable evidence that it costs five times more to acquire a new customer than to retain an existing one. (1)
Perhaps this emphasis on the value of existing customers has been partially a response to (or even justification for) the intensive focus financial institutions have placed on customer relationship management (CRM) strategies and related technologies over the past dozen or so years. (2) During that period, CRM investments have not been small; indeed, they have ...