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You ended up staying put and focusing on relationship marketing to improve the profitability of existing customers. Susan has agreed to increase marketing spending to

You ended up staying put and focusing on relationship marketing to improve the profitability of existing customers. Susan has agreed to increase marketing spending to accomplish the objective, but your budget will be capped. This means that you must choose between the two most promising options, balancing each one's cost against its potential.

- You could put all your efforts into keeping members happy both during and after their purchase. For example, there could be welcome gifts; free juice and healthy snacks; and a newsletter with weekly wellness recommendations. This approach could be best because customer service is essential to building relationships. Hopefully, happy members wouldn't balk at an increased membership price.

- The industry is moving in the direction of personalized wellness services: specifically, nutrition and meditation instruction. If you added these services, charging a la carte for each one, your customer service improvements would have to be more modest. But you'd be ahead of competitors, and there's significant value in being responsive to consumer needs and wants

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which option would you choose?

*add new services with limited improvements to customer service

*focus exclusively on improved customer service

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