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.
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 are based on the concept of viewing customer relationships from a lifetime value perspective, meaning that the focus is on retaining and maximizing the value of long-term customers rather than just maximizing profits in the short term. This approach recognizes that it is often more cost-effective to retain existing customers than to constantly acquire new ones.

Customer Retention Programs Are Based on What Concept