Why Would the Customer Pyramid Be More Appropriate in Identifying

question 53

Multiple Choice

Why would the customer pyramid be more appropriate in identifying customer's lifetime value than utilizing the traditional 80-20 rule?

• A) The 80-20 rule doesn't recognize the behavior of 20 percent of the customers.
• B) The 80-20 rule focuses only on the value of 80 percent of the shoppers.
• C) Customers can more easily identify themselves in where they would be located in the customer pyramid than within the 80-20 rule.
• D) If shoppers have only buy 20 percent of the time,retailers have a missed sale 80 percent of the time.
• E) The 80-20 rule does not consider important differences among the 80 percent of customers in the "rest" segment.