Read the Passage and answer the following questions: 

Relationship banking (RB) philosophy has become a topic of increasing importance in strategic marketing management RB concerns inter alia the applying of customer-driven strategies using advanced information technology. Several studies note the necessity for creating bonds with customers. There are three main reasons for the necessity First, it costs as much as five times less to retain existing customers than to acquire new ones. Secondly, banks can turn to advantage more easily existing customers' lifetime value, in terms of financial products and services. That is, they are able to achieve a surplus revenue on the costs of selling to and servicing customers. Thirdly, a guarantee of minimum profit is generated per fiscal year, since it obtains a steady stream of annual sales. All these lead to an increased value-relevance of customer orientation. As a result, banks attempt to incorporate into their philosophy and organizational culture the framework of RB, that is. the concept of managing the relationship with a customer.