The text states, "Viewing customers with a lifetime value perspective rather than on a transaction-by-transaction basis is key to modern customer retention programs." Create an example demonstrating a lifetime value perspective. Why is customer retention almost always a profitable marketing strategy?
What will be an ideal response?
Answers to the first part will vary, but should demonstrate how much business a customer brings in over a lifetime. For example, a customer spending $4 at Starbucks, five days per week, for 20 years equals $20,800. Customer retention is profitable because it costs more to get new customers than to retain existing ones.
You might also like to view...
Which of the following is a noncounterbalancing error?
A) accrued expenses not recognized at year-end B) accrued revenues that have not been collected or recognized at year-end C) depreciation expense overstated for the year D) prepaid expenses not recognized at year-end
Much less common in international legislation is protection based on __________.
a. Sexual orientation b. Age discrimination c. Race discrimination d. Religious affiliation
Which scholar described how people think about moral issues in terms of stages of development?
A. Heifetz B. Kohlberg C. Plato D. Crain
A ________ is the complete set of firms, facilities, and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers.
A. logistics partnership B. physical distribution group C. supply chain D. just-in time group E. None of these answers is correct.