Select the statement that best completes this sentence: When a company calculates the effectiveness of their customer retention efforts...

Question 2 options:

the most important measure of success is the percent of sales retained at the end of the month, quarter, or year.

the most important measure of success is the overall cost to serve the retained customers.

the company must consider which 80% of customers contribute to the top 20% of the profits.

the company must consider sales, cost to serve, and profitability of the customers retained and lost.

Customer Portfolio Management can be defined as:

Question 3 options:

Identifying similarities between customer groups to minimize marketing cost. The goal is to ensure the fewest segments are created and only those most loyal receive promotions and added value offers.

An approach to maximize profitability by differentiating offerings and value propositions to various customer groupings or clusters. Customers can be assigned to just one grouping based on certain strategically important variables.

Identifying key differences between customer groups with the end goal of creating the greatest number of differentiated customer segments in order to customize marketing programs to each individual customer.

An approach to maximize profitability by differentiating offerings and value propositions to various customer groupings or clusters. Customers can be assigned to multiple groupings based on certain strategically important variables.