Some banks have begun offering special accounts designed to attract junior high school students.These kids save in such small amounts that the accounts cost banks more to maintain than they are worth.But bankers know that consumers are creatures of habit and hope that the young people they serve now will become adult customers.These banks recognize
A) that operational excellence is an important macro strategy.
B) the lifetime value of customers.
C) that product excellence leads to loyal customers.
D) the importance of making decisions based on short-term results.
E) that as long as customers bring in some revenue,costs do not matter.

Question

Quizplus · Accepted Answer

The passage mentions that the banks offer special accounts for junior high school students even though these accounts cost the banks more to maintain than they are worth. This is because the banks recognize the lifetime value of customers and hope that these young people will become loyal adult customers in the future. Therefore, the banks are focusing on building long-term relationships with their customers, which is a key aspect of the macro strategy of customer lifetime value.

Some Banks Have Begun Offering Special Accounts Designed to Attract