A key driver of shareholder value is the aggregate value of the customer base. Identify the five strategies employed by successful companies to improve the value of their customer base by attracting and retaining customers
What will be an ideal response?
Winning companies improve the value of their customer base by excelling at the following five strategies:
1. Reducing the rate of customer defection
2. Increasing the longevity of the customer relationship
3. Enhancing the growth potential of each customer through "share of wallet," cross-selling, and up-selling
4. Making low-profit customers more profitable or terminating them
5. Focusing disproportionate effort on high-value customers
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A company that requires only cash in dealing with customers is following risk reduction
Indicate whether the statement is true or false
Departmental reports are useful to management for all of the following purposes EXCEPT
a. planning. b. controlling. c. determining revenues generating potential. d. determining performance potential.