One bank determined through detailed segmentation analysis that certain customers were clearly less profitable, or even unprofitable, to serve compared with others. They started to charge a fee to those high-cost, low-profit customers if they used a teller at a branch or if they phoned a call centre for customer assistance. Many of these
Customers, upon finding charges of $2 per contact, decided to leave the bank, which is exactly what the bank intended. It could be said that the bank used ________ Customers.
A)de-servicing of
B)de-segmentation of
C)de-selection of
D)segmentation of

Question

Quizplus · Accepted Answer

The bank used de-selection of customers, which means they intentionally chose to stop serving or limiting services to certain customers in order to improve profitability. This was determined through segmentation analysis, which helped the bank identify which customers were high-cost and low-profit. Charging a fee for certain services was a way to incentivize these customers to leave the bank, which is exactly what the bank intended.

One Bank Determined Through Detailed Segmentation Analysis That Certain Customers