At La Rue Fashions, there is a certain customer who makes large purchases every Friday and returns everything two weeks later. In response, the manager recently created a policy and published it. It included specifics of the store's terms regarding returned merchandise stating that all tags must be intact; the clothing must not have been worn; and it must be returned within seven days to receive credit. Which of the following best describes the retailer's actions?
A) Add-on selling
B) Getting the lead out
C) Data mining
D) RFM analysis
E) Cutting off services

Question

Quizplus · Accepted Answer

In many cases, the bottom tier of customers actually has a negative customer lifetime value (CLV). Retailers lose money on every sale they make to these customers. The process of no longer selling to unprofitable customers can be referred to as "getting the lead out," in terms of the customer pyramid.

At La Rue Fashions, There Is a Certain Customer Who