The Retention Trap: Why Holding On to Every Customer May Be Costing You the Business You Actually Want
The axiom that retaining a customer is always cheaper than acquiring a new one has been repeated so often it has acquired the status of business law. It is not. Under specific and increasingly common conditions, the resources devoted to retention actively undermine the unit economics that make a business viable. This piece makes the case for a more rigorous—and occasionally counterintuitive—approach to the acquisition-retention tradeoff.