"Newps" wrote in message
...


Matt Barrow wrote:
"Newps" wrote in message
. ..

XM knows exactly what it costs to attain each new subscriber and it is
much more than the $12 a month they are getting from existing customers.
The same goes for any business.


Vast majority of those costs are fixed (advertising, CS staff, data
processing).

Whatever. Any competent business can tell you what it costs to add a new
customer. It is always much more than retaining an existing customer.

It's where more resources are directed, but actually holding a customer is
harder (according to studies I've heard) which is a point missed by so many
executives and why there is such derision for (purported) Customer
Dis-Service.

In sum, in some industries, yes; not so in others. In industries with costly
FIXED infrastructure, for example.

Things like advertising and staff are expensive. It's a cost well worth
taking as it pays off in the long run.

So is customer service, but we all know horror stories about abysmal CS.


--
Matt
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Matthew W. Barrow
Site-Fill Homes, LLC.
Montrose, CO