October 5th, 2008 by Steven Leung

In this article:

• Determining the lifetime value of a customer
• Choosing the right customers to focus on
• Developing higher value customer relationships (CARLA)
• Building an effective referral system

Earning the business of a new customer is six to seven times more expensive than retaining an existing one according to Bain & Company director emeritus and author of The Loyalty Effect, Frederick Richheld.  So it makes sense to focus marketing efforts, not only on new customer acquisition, but also on increasing the lifetime value of your existing customers.
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