Know-How Exchange : Student Questions

History has shown that it costs more money to sell a product to new customers than it is to sell the same product to existing customers - that's why retention and engagement of your current customers is important: it is less resource-intensive to sell to them. That's not to say that you should ignore acquisition of new customers, but more an answer to your question of why it's important to nurture relationships (Relationship Marketing in deep association with CRM).

Do some research on Lifetime Value of a Customer - not only do you earn revenue from their ongoing purchases, but you also earn their loyalty which turns into word-of-mouth advertising and other brand evangelism. That's priceless

I'm going to zip this right back at you: what do YOU think the answer is?

Let's see you flexing some of those marketing brain cells of yours; let's see you investing in yourself.

As you study this, another topic you might ask yourself is: "what kind of companies or products or services benefit the most from relationship marketing?" If this were my project, I would start by looking up relationship marketing and similar terms on Wikipedia.