Why are many retail firms interested in customer loyalty cards and programs?
A) Roughly 80 percent of the profit comes from 20 percent of the sales.
B) Roughly 80 percent of a firm's customers are repeat business.
C) Roughly 50 percent of a firm's customers purchase 80 percent of the sales volume of the product.
D) Roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product.
E) Sales are equally divided among heavy,medium,and light users,but they all need slightly different products.

Question

Quizplus · Accepted Answer

The Pareto Principle, or 80/20 rule, states that roughly 20 percent of a firm's customers are responsible for 80 percent of their sales volume. By implementing customer loyalty cards and programs, retail firms can incentivize these valuable customers to continue purchasing from them, increasing their revenue and profitability.

Why Are Many Retail Firms Interested in Customer Loyalty Cards