Today, companies are increasingly concerned about customer defection. There are three main steps a company can take to reduce the defection rate. Identify those three steps
What will be an ideal response?
The three steps that a company can take to reduce defection are:
1. The company must define and measure its retention rate.
2. The company must distinguish the causes of customer attrition and identify those that can be managed better.
3. The company must compare the lost profit equal to the customer lifetime value from a lost customer to the costs to reduce the defection rate.
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The adjustment to convert cash-basis collections from customers to accrual-basis revenue earned requires adding the ending balance in accounts receivable and subtracting the beginning balance in accounts receivable.
Answer the following statement true (T) or false (F)
If a pay system is not based upon work-related or business-related logic, it is probably best to not conduct a formal compensation communication program.
Answer the following statement true (T) or false (F)
Sanborn Company has 10 employees, who earn a total of $1,800 in salaries each working day. They are paid on Monday for the five-day workweek ending on the previous Friday. Assume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is:
A. Debit Salaries Expense, $5,400; credit Salaries Payable, $5,400. B. Debit Salaries Expense, $5,400; credit Cash, $5,400. C. Debit Salaries Expense, $9,000; credit Salaries Payable, $9,000. D. Debit Salaries Payable, $5,400; credit Salaries Expense, $5,400. E. Debit Salaries Expense, $3,600; credit Salaries Payable, $3,600.
Rooms To Go furniture store promotes its furniture to its target market based on its customers' personality attributes and lifestyles. Therefore, it is segmenting the furniture market on which type of basis?
A. Demographic B. Behavioristic C. Psychographic D. Geographic E. Social class