LifeTime Insurance screens its customers and tries to get unprofitable customers to buy services from competitors. This is an example of ________.
A) trying to increase the retention rate for low-profit customers
B) terminating the relationship with low-profit customers
C) enhancing the growth potential of each customer through up-selling
D) increasing the longevity of the customer relationship
E) reducing the rate of customer defection

Question

Quizplus · Accepted Answer

Terminating the relationship with low-profit customers involves strategies like encouraging them to switch to competitors, which is what LifeTime Insurance is doing by screening out unprofitable customers and directing them elsewhere.

LifeTime Insurance Screens Its Customers and Tries to Get Unprofitable