Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps the banks to ________.
A) reduce the rate of customer defection
B) enhance the growth potential for each customer through cross-selling
C) increase the longevity of the customer relationship
D) make low-profit customers more profitable
E) focus disproportionate effort on high-value customers

Question

Quizplus · Accepted Answer

By charging fees for once-free services, banks can discourage low-profit customers from using those services or incentivize them to increase their profitability by using more profitable services. This helps banks make low-profit customers more profitable.

Many Banks and Phone Companies Now Charge Fees for Once-Free