Marketing pp 315-349 | Cite as

Customer retention strategy

  • Malcolm McDonald
  • Martin Christopher
  • Margrit Bass


It has been suggested that it costs up to five times as much to win a new customer as it does to retain an existing customer. The costs of capturing market share are not always easy to gauge, but there are many companies who now regret earlier strategies based on the blind pursuit of volume. While there is strong evidence for the link between market share and profitability, there is equally strong evidence to show that it is the quality of that market share that counts. In other words, does the customer base comprise, in the main, long-established, loyal customers, or is there a high degree of customer turnover, or ‘churn’? If the latter is the case, then the chances are the company is not as profitable as it might be.


Marketing Fishing Glean Reten Retained 
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Further reading

  1. Christopher, M., Payne, A. and Ballantyne, D. (1991) Relationship Marketing, Butterworth Heinemann, Oxford.Google Scholar
  2. Raphael, M. and Considine, R. (1981) The Great Brain Robbery (Pasadena, Texas: Business Tips).Google Scholar
  3. Reichheld, F. A. (1994) Loyalty and the renaissance of marketing. Marketing Management, 2 (2), pp. 10–21.Google Scholar
  4. Reichheld, F. and Sasser, W. Jr (1990) Zero defections: quality comes to Services. Harvard Business Review (September/October), pp. 105–111.Google Scholar

Copyright information

© Malcolm McDonald and Martin Christopher 2003

Authors and Affiliations

  • Malcolm McDonald
  • Martin Christopher
  • Margrit Bass

There are no affiliations available

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