ing ▁new ▁customers ▁may ▁cost ▁up ▁to ▁five ▁times ▁more ▁than ▁retain ing ▁current ▁customers ▁because ▁direct ▁or ▁' off ensive ' ▁market ing ▁requires ▁much ▁more ▁to ▁cause ▁defe ction ▁from ▁compet itors . ▁However , ▁it ▁is ▁suggested ▁that ▁because ▁extensive ▁classic ▁market ing ▁theories ▁center ▁on ▁means ▁of ▁attract ing ▁customers ▁and ▁creating ▁transactions ▁rather ▁than ▁maintain ing ▁them , ▁the ▁pre domin ant ▁usage ▁of ▁direct ▁market ing ▁used ▁in ▁the ▁past ▁is ▁now ▁gradually ▁being ▁used ▁more ▁with ▁relationship ▁market ing ▁as ▁the ▁latter ' s ▁importance ▁becomes ▁more ▁recogn izable . ▁ ▁Reich h eld ▁and ▁S asser ▁( 1 9 9 0 ) ▁claim ▁that ▁a ▁ 5 % ▁improvement ▁in ▁customer ▁ret ention ▁can ▁cause ▁an ▁increase ▁in ▁profit ability ▁of ▁between ▁ 2 5 ▁and ▁ 8 5 ▁percent ▁in ▁terms ▁of ▁net ▁present ▁value ▁depending ▁on ▁the ▁industry . ▁However , ▁Car rol ▁and ▁Reich h eld ▁dispute ▁these ▁calculations , ▁claim ing ▁that ▁they ▁result ▁from ▁fault y ▁cross - section al ▁analysis . ▁Research ▁by ▁John ▁F lem ing ▁and ▁Jim ▁As pl und ▁indicates ▁that ▁engaged ▁customers ▁generate ▁ 1 . 7 ▁times ▁more ▁re venue ▁than ▁normal ▁customers ▁while ▁having ▁engaged ▁employees ▁and ▁engaged ▁customers ▁returns ▁a ▁re venue ▁gain ▁of ▁ 3 . 4 ▁times ▁the ▁normal ▁return . ▁ ▁According ▁to ▁Buch an an ▁and ▁G illes , ▁the ▁increased ▁profit ability ▁associated ▁with ▁customer ▁ret ention ▁efforts ▁occurs ▁because ▁of ▁several ▁factors ▁once ▁a ▁relationship ▁has