Why are many retail firms interested in customer loyalty cards and programs?
A) Sales are equally divided among heavy,medium,and light users,but they all need slightly different products.
B) Roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product.
C) Roughly 80 percent of the profit comes from 20 percent of the sales.
D) Roughly 80 percent of a firm's customers are repeat business.

Question

Quizplus · Accepted Answer

Retail firms are interested in customer loyalty cards and programs because roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product, which means they want to retain these valuable customers and encourage them to continue purchasing from the company. Customer loyalty programs can also incentivize customers to increase their purchases, which can further drive sales and revenue.

Why Are Many Retail Firms Interested in Customer Loyalty Cards