It is commonly known that the cost of seeking
and converting a new customer is somewhere between
five to twenty-five times more than retaining an
existing customer (Isaac and Tooker, 2001). Even so,
because relationships may dissolve, it is necessary for
businesses to seek new customers – even though the
cost of doing so may be substantially higher than
retaining current customers. The fact is that new
customers will be needed to replace old customers if
the seller is to maintain its current level of business.
Another important reason to seek new customers is
growth objectives (Aaker, 2001, pp. 221-222). For
example, the classic market development strategy can
be used to seek new customers in existing markets.