There are several organizations that spend disproportionate amount of time in acquiring new customers rather than servicing those already in existence. This results in loss of customers as some of them are highly demanding and will run off to the competitor if the servicing there is superior. This sort of attitude by the company is due to several possible reasons. Firstly, some of them are complacent enough to believe in their own publicity imagining that customers will be retained anyway, such is the high quality of service. In other cases, the industry trends are such that a high churn rate is considered natural. New business generation is reported to shareholders, analysts and management while no such study exists for the churn. The business analysis of lost customers’ impact is often not reviewed thoroughly by several organizations. Crucially, some firms link their marketers’ salaries with new customer acquisition not with retention. All these trends are harmful for the health of any business and needs to be rectified with urgency.


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