ExamGecko
Question list
Search
Search

List of questions

Search

Question 124 - CSCP discussion

Report
Export

When a company undertakes a win-back strategy without considering the profitability of customer accounts, it is neglecting which of the following key elements?

A.
Loyalty
Answers
A.
Loyalty
B.
Scoring
Answers
B.
Scoring
C.
Segmentation
Answers
C.
Segmentation
D.
Prospecting
Answers
D.
Prospecting
Suggested answer: C

Explanation:

Win-back Strategy: This involves efforts to re-engage and regain former customers who have stopped purchasing from the company.

Profitability Consideration: When implementing a win-back strategy, it is essential to evaluate the profitability of different customer accounts to ensure that the resources are being used effectively.

Segmentation: This is the process of dividing customers into groups based on common characteristics such as profitability, purchasing behavior, and loyalty.

Neglecting Segmentation: Failing to consider segmentation in a win-back strategy means the company might spend resources on low-profit or unprofitable customers, which can reduce the overall return on investment for the win-back efforts.

Zeithaml, V. A., Rust, R. T., & Lemon, K. N. (2001). The Customer Pyramid: Creating and Serving Profitable Customers. California Management Review, 43(4), 118-142.

Reinartz, W., & Kumar, V. (2003). The Impact of Customer Relationship Characteristics on Profitable Lifetime Duration. Journal of Marketing, 67(1), 77-99.

asked 16/09/2024
Daniele Longhi
31 questions
User
Your answer:
0 comments
Sorted by

Leave a comment first