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Question 123 - CSCP discussion

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It is most appropriate to measure spending per customer as a proportion of profitability during which of the following phases of a supplier/customer relationship?

A.
Customer acquisition
Answers
A.
Customer acquisition
B.
Customer retention
Answers
B.
Customer retention
C.
Customer dependency
Answers
C.
Customer dependency
D.
Strategic customer care
Answers
D.
Strategic customer care
Suggested answer: A

Explanation:

Customer Acquisition: This is the process of gaining new customers or clients for a business. It involves marketing and sales strategies aimed at bringing new customers into the company's fold.

Spending per Customer: During the customer acquisition phase, companies typically invest heavily in marketing, promotions, and discounts to attract new customers.

Profitability Consideration: Measuring spending per customer in this phase helps companies understand the cost-effectiveness of their acquisition strategies and determine the return on investment.

Rationale: High spending is expected in customer acquisition because it is a critical phase for building a customer base. This metric helps in evaluating and optimizing acquisition strategies to ensure long-term profitability.

Kotler, P., & Keller, K. L. (2016). Marketing Management. Pearson.

Kumar, V., & Shah, D. (2004). Building and Sustaining Profitable Customer Loyalty for the 21st Century. Journal of Retailing, 80(4), 317-329.

asked 16/09/2024
GLAUCIA C N SILVA
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