Which of the Following Statements Is True About Customer Retention

question 38

Multiple Choice

Which of the following statements is true about customer retention and customer life expectancy?

• A)The higher the customer retention rate,the lower the short-term profit impact.
• B)As customer retention increases,the customer's life expectancy decreases.
• C)Customer life expectancy decreases exponentially with customer retention.
• D)In general,it costs five times more to replace than to keep a customer.
• E)Higher levels of customer retention have a long-term negative impact on profits.