A low _____ is usually key to a firm's profitability because acquiring a customer is more expensive than keeping one.
A) subscription fee
B) inventory size
C) churn rate
D) switching cost
E) opportunity cost

Question

Quizplus · Accepted Answer

A low churn rate is crucial for a firm's profitability because it indicates a lower rate of customers leaving or stopping the use of a service, which is beneficial since acquiring new customers is typically more costly than retaining existing ones.

A Low _____ Is Usually Key to a Firm's Profitability