Is it true that there is current evidence suggesting long-term customers are more profitable than new customers?

The statement about long-term customers being more profitable than new customers acknowledges a widely accepted principle in business and marketing. However, it is essential to recognize that while long-term customers often do provide sustained revenue and loyalty, it is not universally true that they are always more profitable than new customers.

In many cases, acquiring new customers can also be profitable, particularly when considering the potential for increased market share and the introduction of new products or services. Furthermore, some businesses may experience unique dynamics depending on their specific market conditions or customer engagement strategies.

Different industries may have varying dynamics regarding customer profitability. In the hospitality industry, for example, repeat customers often yield higher margins due to their familiarity with the brand and potential for upselling, while in retail, new customers may be attracted through promotions. This differentiation further complicates a blanket statement regarding customer profitability across all sectors.

Therefore, while evidence often supports the idea that maintaining long-term customers can lead to higher profitability due to loyalty and reduced marketing costs, it is not an absolute truth applicable across all scenarios.