According to Experts, Getting a New Customer Costs Five Times

question 34

True/False

According to experts, getting a new customer costs five times more than keeping a current customer.

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Definitions:

Flotation Costs

Expenses incurred by a company when issuing new securities, including legal, underwriting, and advertising costs.

Real World

A term referring to actual conditions and practical experiences in everyday life, as opposed to theoretical or simulated environments.

Automatic Dividend Reinvestment

A program that automatically uses dividends paid by investments to purchase more shares of those investments.

Homemade Dividend Policies

Investment strategies whereby investors create their own dividend stream by selling a portion of their portfolio of equities.