A coffee shop is considering a customer loyalty program.According to research by Reinhartz and Kumar, what should the owners keep in mind when setting up the program?
A)Many heavy users are multibrand loyal.
B)Long-life customers are more costly to serve.
C)High lifetime revenues drive duration, not profit.
D)Long-term customers are less price sensitive.
E)Long-life customers pay higher average prices.

Question

Quizplus · Accepted Answer

Many heavy users are multibrand loyal, meaning they may not be as loyal to one brand as expected, which is important for the coffee shop to consider when designing a loyalty program to ensure it effectively retains customers.

A Coffee Shop Is Considering a Customer Loyalty Program