Customer Retention

Marketing fills the bucket. Operations and service determine whether what you captured stays. LTV must be at minimum three times CAC. Below that ratio, you are paying more to acquire customers than you earn from keeping them — a business model problem, not a marketing one.

Customer service is treated as a cost to minimize. But the calculation that justifies cutting it ignores what those interactions are worth. The false economy of service reduction costs significantly more in re-acquisition than it saves in operational efficiency.