I disagree with your premise that marketing for new customers is a mistake. Its entirely dependent on your strategy. But also its much harder to increase margin

I disagree with your premise that marketing for new customers is a mistake. Its entirely dependent on your strategy. But also its much harder to increase margins on existing customers then it is to gain margin by getting new customers. Take a Pizza place - say an average customer gets 12 pizza's a year. Pizza D can focus on trying to get more business out of them but how many more pizza's do they sell? Can they maybe sell 3-4 more pizzas per customer per year? Compare that to an entirely new customer each which brings an average load of 12 more pizzas a year. Even if it costs twice as much marketing to convert new customer its still worth it. Ultimately it comes down to your business and your campaign and which type is more valuable.