In the context of a market orientation, it is more efficient and less expensive for an organization toMultiple Choiceview the products as the ultimate drivers of marketing strategy.focus on increasing the amount of business from new customers.retain existing customers.provide a single point of interaction with customers.
Question
In the context of a market orientation, it is more efficient and less expensive for an organization toMultiple Choiceview the products as the ultimate drivers of marketing strategy.focus on increasing the amount of business from new customers.retain existing customers.provide a single point of interaction with customers.
Solution
In the context of a market orientation, it is more efficient and less expensive for an organization to retain existing customers.
Here's why:
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Customer Acquisition Cost: It is generally more expensive to acquire new customers than to retain existing ones. This is because acquiring new customers involves marketing and advertising expenses, sales team efforts, and more.
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Customer Loyalty: Existing customers are more likely to be loyal to the business. They have already made a purchase and if they were satisfied with the product or service, they are likely to make repeat purchases.
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Cross-selling and Up-selling: With existing customers, there are opportunities for cross-selling and up-selling. They are more likely to buy other products or more expensive products from the same business.
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Word-of-Mouth Marketing: Satisfied existing customers can become advocates for the business, bringing in new customers through word-of-mouth marketing, which is free and highly effective.
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Predictable Revenue: Existing customers provide a predictable and steady revenue stream. This is especially important for businesses with a subscription-based model.
Therefore, focusing on retaining existing customers can be a more efficient and less expensive strategy for an organization with a market orientation.
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