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- Customer Acquisition-Retention-Cost Matrix
Customer Acquisition-Retention-Cost Matrix
The Customer Acquisition-Retention-Cost Matrix is a 2x2 matrix used to visualize the cost of customer acquisition and retention, and the relative importance of each. It helps businesses make decisions about how to allocate resources to acquire and retain customers.
At a very high level, the Customer Acquisition-Retention-Cost Matrix is used in the context of business, marketing, finance.
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- Organizational Effectiveness-Value Stream Alignment Matrix
- Organizational Health Assessment Matrix
- Organizational Health Matrix
- Organizational Performance Matrix
- Organizational Performance-Effectiveness Matrix
- Organizational Performance-Value Matrix
- Organizational Readiness-Value Matrix
- Organizational Resilience Matrix
- Organizational Resilience-Performance Matrix
- Organizational Resilience-Value Chain Alignment Matrix
- Organizational Resilience-Value Matrix
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- Organizational Risk-Opportunity Matrix
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- Outsourcing Risk-Value Matrix
- Paid Search-Competitive Positioning Matrix
- Partner Selection Matrix
- Partnership Marketing Matrix
- People Capability Maturity Matrix
- Perception-Positioning Matrix
- Performance and Potential Matrix
- Performance Appraisal Matrix
- Performance Feedback Matrix
- Performance Management Maturity Matrix
- Performance Management-Value Chain Alignment Matrix
- Performance Management-Value Matrix
- Performance Management-Value Proposition-Value Stream Alignment Matrix
- Performance Management-Value Stream Alignment Matrix
- Performance Measurement Matrix
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- Performance-Value Matrix
- Performance-Value-Complexity Matrix
- Personality Assessment-Value Matrix
- Personalization Matrix
- PESTLE Analysis Template
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- Porter's Five Forces Framework
- Portfolio Analysis Matrix
- Portfolio Analysis-Evaluation Matrix
- Portfolio Analysis-Performance Alignment Matrix
- Portfolio Analysis-Value Alignment Matrix
- Portfolio Assessment-Performance Alignment Matrix
- Portfolio Optimization-Value Alignment Matrix
- Portfolio Optimization-Value Stream Alignment Matrix
- Portfolio Performance-Value Matrix
- Positioning Matrix
- Process Capability Assessment-Value Alignment Matrix
- Process Capability Matrix
- Process Capability-Performance Matrix
- Process Capability-Value Alignment Matrix
- Process Improvement Matrix
- Process Improvement Maturity Matrix
- Process Improvement-Performance Alignment Matrix
- Process Improvement-Value Alignment Matrix
- Process Improvement-Value Stream Alignment Matrix
- Procurement Capability-Value Matrix
- Procurement Maturity Matrix
- Product Adoption Matrix
- Product Costing Matrix
- Product Design Matrix
- Product Design-Development Matrix
- Product Design-Value Matrix
- Product Development Matrix
- Product Development-Reward Matrix
- Product Development-Risk Matrix
- Product Development-Risk-Value Alignment Matrix
- Product Development-Value Matrix
- Product Differentiation Matrix
- Product Feature Matrix
- Product Feature-Value Alignment Matrix
- Product Feature-Value Matrix
- Product Launch-Performance Matrix
- Product Life Cycle Matrix
- Product Portfolio Matrix
- Product Positioning Matrix
- Product Roadmap Matrix
- Product Roadmap-Performance Matrix
- Product-Market Fit Matrix
- Product-Market-Technology Matrix
- Product-Service Matrix
- Product-Service Mix Matrix
- Product/Market Matrix
- Productivity Improvement Matrix
- Program Management Maturity Matrix
- Project Benefit Matrix
- Project Charter Matrix
- Project Management Capability Assessment-Value Matrix
- Project Management Capability-Performance Alignment Matrix
- Project Management Capability-Value Proposition Alignment Matrix
- Project Management Capability-Value Stream Alignment Matrix
- Project Management Matrix
- Project Management Office Maturity Matrix
- Project Management-Performance Alignment Matrix
- Project Prioritization Matrix
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- Project Risk-Value Matrix
- Promotions Matrix
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- Risk Analysis Matrix
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- Sales Effectiveness-Value Matrix
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- Service Delivery Capability Maturity Matrix
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- Service Delivery Matrix
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- Service Delivery Performance-Value Matrix
- Service Delivery-Value Alignment Matrix
- Service Delivery-Value Matrix
- Service Design and Delivery Capability Assessment Matrix
- Service Design and Delivery Matrix
- Service Design and Delivery-Value Alignment Matrix
- Service Design Matrix
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- Service Innovation-Value Matrix
- Service Innovation-Value Proposition Alignment Matrix
- Service Innovation-Value Stream Alignment Matrix
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- Social Impact Assessment Matrix
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What is the Customer Acquisition-Retention-Cost Matrix?
A visual explanation is shown in the image above. The Customer Acquisition-Retention-Cost Matrix can be described as a matrix with the following quadrants:
- Low Acquisition, High Retention: This quadrant represents a situation where customer acquisition costs are low and retention costs are high. Examples include offering discounts to new customers, or providing incentives for existing customers to stay.
- High Acquisition, Low Retention: This quadrant represents a situation where customer acquisition costs are high and retention costs are low. Examples include investing in marketing campaigns to attract new customers, or offering loyalty programs to existing customers.
- Low Acquisition, Low Retention: This quadrant represents a situation where both customer acquisition and retention costs are low. Examples include offering referral programs to existing customers, or providing discounts to new customers.
- High Acquisition, High Retention: This quadrant represents a situation where both customer acquisition and retention costs are high. Examples include investing in marketing campaigns to attract new customers, and offering loyalty programs to existing customers.
What is the purpose of the Customer Acquisition-Retention-Cost Matrix?
The Customer Acquisition-Retention-Cost Matrix is a 2x2 matrix used to visualize the cost of customer acquisition and retention, and the relative importance of each. It helps businesses make decisions about how to allocate resources to acquire and retain customers.
The matrix is divided into four quadrants, each representing a different combination of customer acquisition and retention costs. The top-left quadrant represents a situation where customer acquisition costs are low and retention costs are high. The top-right quadrant represents a situation where customer acquisition costs are high and retention costs are low. The bottom-left quadrant represents a situation where both customer acquisition and retention costs are low. The bottom-right quadrant represents a situation where both customer acquisition and retention costs are high.
The matrix can be used to identify areas where the business can focus its efforts to reduce costs and increase customer retention. For example, if the business is in the top-left quadrant, it may need to invest more resources in customer retention in order to reduce costs. On the other hand, if the business is in the top-right quadrant, it may need to invest more resources in customer acquisition in order to reduce costs.
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The following templates can also be categorized as business, marketing, finance and are therefore related to Customer Acquisition-Retention-Cost Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.
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