Is it better to be a Hunter-Gatherer (acquisition mentality) or a Farmer-Nester (cultivating loyalty)? Of course, it is not about one or the other. Companies need to find a mix between acquisition and loyalty. No business can survive without first gaining new customers. Yet, what is the point of attracting new clients if one is not concerned with keeping them?
Moreover, it is common knowledge that loyal customers are worth more and cost less than new customers. There are statistics that are regularly trotted out saying that it costs 6-7x more to attract new customers than to keep existing ones. (N.B. The singular source for this “6-7x” information from Flowtown has been taken down, ironically, after it was acquired). All the same, there is not a single intelligent executive who would disagree with the principle of “keeping loyal customers.”