Why are many retail firms interested in customer loyalty cards and programs?
A)because roughly 80 percent of the profit comes from 20 percent of the sales
B)because roughly 80 percent of a firm's customers are repeat business
C)because roughly 50 percent of a firm's customers purchase 80 percent of the sales volume of the product
D)because roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product

Question

Quizplus · Accepted Answer

The Pareto principle states that roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product. As such, many retail firms are interested in customer loyalty cards and programs to encourage repeat business and incentivize customers to keep purchasing from them. The loyalty cards allow firms to track customer purchases and offer rewards or discounts to their most valuable customers.

Why Are Many Retail Firms Interested in Customer Loyalty Cards