The number of new customers required to maintain the status quo or to grow depends on how well a firm retains its current customers. A firm that loses 5% of its customers every year needs to gain at least that many new ones during the year. It is clear that long-term marketing success is based, in part, on acquiring new customers.
Acquiring new customers is difficult in the maturity stage of the product life cycle because each of the firm’s competitors also tries to acquire new customers. One approach to customer acquisition is to focus on brand switching within existing market segments.
Customers may be acquired by expanding to a geographic area in which a good or service is not offered or where a particular brand is not being sold.
Acquisition of new customers often results from the implementation of a product strategy. Products attract new customers by offering new features, eliminating old problems, and solving different needs.