According to widely accepted research in retail economics, what is the average cost of acquiring a new customer compared to retaining an existing one?

Customer retention is a critical component of retail success, often determining long-term profitability. While acquiring new customers is important, keeping existing ones is significantly more cost-effective. This trivia question explores a well-established business principle regarding customer retention that every retail professional should be familiar with. Test your knowledge of this fundamental concept that drives loyalty programs and retention strategies across the retail landscape.

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It costs 5 times more to acquire a new customer than to retain an existing one
It costs 2 times more to acquire a new customer than to retain an existing one
It costs 10 times more to acquire a new customer than to retain an existing one
The cost is approximately equal for acquiring new customers and retaining existing ones