Customer Retention Programs Are Based on What Concept

question 53

Multiple Choice

Customer retention programs are based on what concept?

• A) Customer excellence is the easiest macro strategy to follow.
• B) Customer relationships should be viewed from a lifetime value perspective.
• C) It is important to maximize profits in the first few months of a customer relationship.
• D) Segmentation,targeting,and positioning analysis should not be rushed.
• E) Firms must spend large amounts of money to retain customers.

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Definitions:

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.

Income Summary

An account used in the closing process that summarizes the revenues and expenses for a period, helping to determine the net income or loss.

Revenue Account

An account that tracks the income earned by a business from its normal operations, such as sales of goods or services.

Capital

Financial resources or assets owned by a business, used to fund operations and investments.