Customer retention programs are based on what concept?
A)Customer excellence is the easiest macro strategy to follow.
B)Customer relationships should be viewed from a lifetime value perspective rather than on a transaction-by-transaction basis.
C)It is important to maximize profits in the first few months of a customer relationship.
D)Segmentation, targeting, and positioning analysis should not be rushed.
E)Firms must spend large amounts of money to retain customers.

Question

Quizplus · Accepted Answer

Customer retention programs focus on building long-term relationships with customers and viewing their value from a lifetime perspective, rather than simply trying to maximize profits in the short-term. This approach acknowledges that retaining a customer and encouraging repeat business is often more cost-effective than acquiring a new customer.

Customer Retention Programs Are Based on What Concept