Customer Acquisition-Retention Matrix

The Customer Acquisition-Retention Matrix is a 2x2 matrix used to compare the cost of acquiring new customers to the cost of retaining existing customers. It helps businesses understand the importance of customer retention and the cost of customer acquisition.

At a very high level, the Customer Acquisition-Retention Matrix is used in the context of business, marketing, finance.

Customer Acquisition-Retention Matrix quadrant descriptions, including examples
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What is the Customer Acquisition-Retention Matrix?

A visual explanation is shown in the image above. The Customer Acquisition-Retention Matrix can be described as a matrix with the following quadrants:

  1. Acquire: The Acquire quadrant is for businesses that have a low cost of acquiring new customers.
  2. Retain: The Retain quadrant is for businesses that have a higher cost of acquiring new customers than retaining existing customers.
  3. Invest: The Invest quadrant is for businesses that have a high cost of acquiring new customers but a low cost of retaining existing customers.
  4. Ignore: The Ignore quadrant is for businesses that have a high cost of acquiring new customers and a high cost of retaining existing customers.

What is the purpose of the Customer Acquisition-Retention Matrix?

The Customer Acquisition-Retention Matrix is a 2x2 matrix used to compare the cost of acquiring new customers to the cost of retaining existing customers. It helps businesses understand the importance of customer retention and the cost of customer acquisition.

The matrix is divided into four quadrants: Acquire, Retain, Invest, and Ignore. Each quadrant represents a different action that a business should take depending on the cost of acquiring new customers versus the cost of retaining existing customers. For example, if the cost of acquiring new customers is higher than the cost of retaining existing customers, the business should focus on Retaining customers.

The Customer Acquisition-Retention Matrix can be used to identify areas where a business can improve its customer acquisition and retention strategies. It can also help businesses understand the importance of customer retention and the cost of customer acquisition.


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What templates are related to Customer Acquisition-Retention Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Customer Acquisition-Retention 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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