However, very few of them are willing to publicize their stories as proof of the effectiveness of the approach. One of the exceptions is Max Grassfield, owner of Grassfield's, an upscale men's clothing store in Denver. Max founded the store 35 years ago. Max literally issues personal invitations to his store to a carefully selected group of individuals in the Denver area. Most businesses lose between 15 and 20 percent of their customers each year.
Retailers lose even higher percentages.
However, the profits from the remaining customers can be significant. The acquisition costs of new custo-mers, particularly for a small retail store, can be very high. The real payoff comes from the loyal customers who, over a period of months or years, move up from being customers to becoming clients and even advocates. This what Max Grassfield does. The answer depends on the retailer in question.