Gupta and Lehmann's customer equity study showed that customer equity was measurably impacted most by:
A) reducing the cost of new customer acquisition
B) increasing customer retention rates
C) raising product margins
D) increasing stock prices

Question

Quizplus · Accepted Answer

Gupta and Lehmann's study found that increasing customer retention rates had the most significant impact on customer equity. This is because retaining customers typically leads to repeat purchases and often at a lower cost than acquiring new customers, thereby increasing the lifetime value of the customer base.

Gupta and Lehmann's Customer Equity Study Showed That Customer Equity