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Blythe, J. (2009). The leaky bucket theory. In SAGE key Concepts: Key concepts in marketing (pp. 21-21). London: SAGE Publications Ltd doi: 10.4135/9781446221617.n5

Blythe, Jim. "The Leaky Bucket Theory." In Key Concepts in Marketing, 21, SAGE Key Concepts. London: SAGE Publications Ltd, 2009. doi: 10.4135/9781446221617.n5.

Blythe, J 2009, 'The leaky bucket theory', in Key concepts in marketing, SAGE Key Concepts, SAGE Publications Ltd, London, pp. 21, viewed 20 May 2019, doi: 10.4135/9781446221617.n5.

Blythe, Jim. "The Leaky Bucket Theory." Key Concepts in Marketing. London: SAGE Publications Ltd, 2009. 21. SAGE Knowledge. Web. SAGE Key Concepts. 20 May. 2019, doi: 10.4135/9781446221617.n5.

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The Leaky Bucket Theory
The leaky bucket theory

Customer retention is one of the key concepts in relationship marketing. Most companies concentrate on recruiting new customers to replace customers who move on, rather than seeking to retain customers. Andrew Ehrenberg coined the phrase ‘leaky bucket’ to describe this syndrome: in effect, firms are putting customers into a leaky bucket, and instead of preventing them from leaking away through the bottom of the bucket, the firm keeps topping up the bucket with new customers (Ehrenberg, 1988).

Figure 1.4 The leaky bucket

A study performed by the Cumberland Bank (Murphy, 2001) in the United States showed that the ...

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