Why would the customer pyramid be more appropriate in identifying a customer's lifetime value than utilizing the traditional 80-20 rule?
A) The 80-20 rule doesn't recognize the behavior of 20 percent of the customers.
B) The 80-20 rule focuses only on the value of 80 percent of the shoppers.
C) Customers can more easily identify where they would be located in the customer pyramid than within the 80-20 rule.
D) If shoppers only buy 20 percent of the time, retailers have a missed sale 80 percent of the time.
E) The 80-20 rule does not consider important differences among the 80 percent of customers in the "rest" segment.

Question

Quizplus · Accepted Answer

The two-segment scheme, "best" and "rest," does not consider important differences among the 80 percent of customers in the "rest" segment. Many of the customers in the "rest" category are potentially "best," or at least, good customers.

Why Would the Customer Pyramid Be More Appropriate in Identifying