A few customers cost more to serve than the revenues they generate.Identify the most appropriate way to handle these customers.
A)Attempt to turn away the unprofitable customers.
B)Provide services at a discounted rate to these customers.
C)Avail preferential treatment to these customers.
D)Design specific marketing messages for these customers.

Question

Quizplus · Accepted Answer

Attempting to turn away unprofitable customers may be the most appropriate way to handle them as continuing to serve them may result in ongoing losses. This frees up resources to focus on more profitable customers and allows the company to optimize its profits. Although providing services at a discounted rate, availing preferential treatment, or designing specific marketing messages for these customers are options, they may not necessarily address the underlying issue of profitability.

A Few Customers Cost More to Serve Than the Revenues