Asked by Tyrik Lawson on Jul 05, 2024
Verified
Which of the following statements is FALSE regarding the use of the 80/20 rule in managing customer relationships?
A) Advances in technology and data collection techniques allow firms to profile customers in real time.
B) Twenty percent of customers provide 80 percent of business profits.
C) Some customers are too expensive to keep given the low level of profits that they generate.
D) The 20 percent of customers in the bottom tier should be fired so the firm can focus on its top customers.
E) The firm's top customers are the most obvious candidates for retention strategies.
80/20 Rule
A principle stating that 80% of effects come from 20% of causes, often applied to business and economics to focus on the most productive inputs.
Customer Relationships
The ongoing interactions and engagements a company maintains with its customers to foster loyalty and satisfaction.
Data Collection Techniques
These are methods used to gather information from various sources, including surveys, interviews, observations, and existing databases.
- Recognize tactics for enhancing relationships with customers and the function of financial rewards.
- Understand the transition from focusing on market share to prioritizing customer-centric measures like share of customer and customer lifetime value.
Verified Answer
Learning Objectives
- Recognize tactics for enhancing relationships with customers and the function of financial rewards.
- Understand the transition from focusing on market share to prioritizing customer-centric measures like share of customer and customer lifetime value.
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