Internertional Association for Healthcare Security and Safety (IAHSS) Advanced Officer Certification Practice Exam

Customer retention is how many times less expensive than attracting new customers?

1. 2 to 3

2. 5 to 6

3. 7 to 9

4. 10 to 12

The correct answer is: 5 to 6

Customer retention is significantly more cost-effective than acquiring new customers. Research indicates that it is, on average, 5 to 6 times less expensive to retain existing customers compared to the costs associated with attracting new ones. This is due to various factors, such as the financial commitment to marketing and advertising strategies aimed at new customer acquisition, the need to establish trust with new customers, and the overall expenses involved in bringing awareness to a brand or service. Retaining customers, on the other hand, typically involves lower costs because these customers are already familiar with the brand, its products, and its services. Existing customers are more likely to make repeat purchases and can serve as brand advocates, reducing the need for extensive marketing efforts. By focusing on customer service, satisfaction, and loyalty programs, organizations can effectively keep their existing customer base engaged, thus minimizing costs associated with customer acquisition. Research from various industries consistently supports this finding, establishing that focusing on customer retention strategies can lead to long-term profitability and sustainability for businesses. Understanding this dynamic can be particularly valuable for healthcare security and safety practitioners as they assess resource allocation and strategy development within their organizations.