Reasons for developing long-term relationship with customers

On average it is estimated to cost 5 times as much to attract a new customer as it does to keep an old one. Long-term relationships with customers are therefore more profitable because:

• The cost of acquiring new customers can be high
• Loyal customer tend to spend more and cost less to serve
• Satisfied customers are likely to recommend your products and services
• Advocates of a company are or likely to pay premium price to  supplier they know and trust
• Retaining existing customers prevents competitors from gaining market share