South Africa, Dec. 8 -- Harvard Business Review has said that "depending on which study you believe, and what industry you're in, acquiring a customer is anywhere from five to 25 times more expensive than retaining an existing one."1 To put that into numbers, going with the more conservative five percent: if you spend R1,000 to gain a new customer, it will cost you just R200 to keep an existing one.

Acquisition requires marketing, prospecting, conversion and other costs associated with getting out there, finding new clients, and slowly drawing them into your orbit. Retention requires nurturing, and keeping customers happy, usually at a much lower cost. Plus, acquisition may be getting more expensive. Again, this depends on what industry ...