Customers who are both low revenue generators and low profit generators for a firm should be:
A)Terminated as customers.
B)Provided with a minimum level of customer service.
C)Reviewed for possible termination or continuation.
D)Treated with customer success relationships to improve revenue and profit.

Question

Quizplus · Accepted Answer

Customers who are both low revenue and low profit generators should be reviewed for possible termination or continuation. It's possible that they could become high revenue or high profit customers in the future, so it's important to carefully evaluate whether their potential long-term value outweighs their current low contribution. Termination or minimal customer service may not be the best option as it could damage the firm's reputation and potentially miss out on future opportunities to turn the customer around. Treated with customer success relationships may not be appropriate if the customer does not have the potential to become a high revenue or profit generator.

Customers Who Are Both Low Revenue Generators and Low Profit