Carla, a team leader in charge of customer relationship management, is planning strategies to improve the profitability of her firm's least profitable but loyal customers. She is also examining methods for "firing" customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong?
A) butterflies
B) true friends
C) strangers
D) barnacles
E) innovators

Question

Quizplus · Accepted Answer

Barnacles are customers who are loyal but not profitable. Carla is specifically looking for ways to improve the profitability of these customers and considering dropping those who cannot be made profitable, which is characteristic of the barnacles group. Butterflies are high-profit but not very loyal customers, true friends are high-profit and highly loyal customers, strangers are low-profit and not very loyal customers, and innovators are customers who adopt new products or services early on.

Carla, a Team Leader in Charge of Customer Relationship Management