Customers can be classified into four relationship groups based on their profitability and projected loyalty. Which customer type is associated with high profitability and long-term loyalty?
A) barnacles
B) strangers
C) butterflies
D) true friends
E) cash cows

Question

Quizplus · Accepted Answer

Customers can be classified into four relationship groups based on their profitability and projected loyalty. The four relationship groups are:
A) Barnacles: Customers who are low in profitability and low in projected loyalty. These customers are expensive to maintain and not very loyal, so they may not be very profitable in the long term.
B) Strangers: Customers who are low in profitability and low in projected loyalty. These customers may make occasional purchases, but they are not loyal and not very profitable.
C) Butterflies: Customers who are high in profitability but low in projected loyalty. These customers may make large purchases, but they are not loyal and may leave for a competitor if they find a better deal.
D) True Friends: Customers who are high in profitability and high in projected loyalty. These customers are the most valuable to a company because they are both profitable and loyal in the long term.
E) Cash Cows: Customers who are low in loyalty but high in profitability. These customers are profitable, but they are not loyal and may leave if they find a better deal.
Therefore, the customer type associated with high profitability and long-term loyalty is D) true friends.

Customers Can Be Classified into Four Relationship Groups Based on Their