Why is the customer pyramid more appropriate for identifying customers than the 80-20 rule?
A) Buyers cannot use the information derived from the 80-20 rule
B) The 80-20 rule does not recognize the behaviour of 20 percent of the customers
C) Retailers can develop more appropriate strategies for each of the segments in the pyramid
D) Shoppers tend to buy only 20 percent of the time, and retailers want to increase it to 80 percent
E) The 80-20 rule focuses on the value of 80 percent of the shoppers

Question

Quizplus · Accepted Answer

The customer pyramid allows retailers to segment customers into different tiers based on their value and behavior, enabling more tailored strategies for each segment, unlike the 80-20 rule which is more generalized.

Why Is the Customer Pyramid More Appropriate for Identifying Customers