Asked by Tracy Thich on May 03, 2024
Verified
Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in
A) a product development growth strategy.
B) an operational advantage.
C) opportunities for diversification.
D) increased long-term profits.
E) more clearly defined market segments.
Customer Retention
The activities and actions companies and organizations take to reduce the number of customer defections and to encourage loyalty among existing customers.
Long-Term Profits
The sustained earnings a company generates over an extended period, indicating its financial health and stability.
- Acquire knowledge on the pivotal role of customer loyalty and retention strategies in ensuring ongoing profitability.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
D
Explanation :
Retaining customers can lead to increased profits in the long-term as customers who are satisfied with a bank's services are likely to continue doing business with them, potentially leading to repeat business and referrals. This can be more cost-effective than acquiring new customers as the bank does not have to spend as much on marketing and promotion.
Learning Objectives
- Acquire knowledge on the pivotal role of customer loyalty and retention strategies in ensuring ongoing profitability.
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