Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps the banks to ________.
A) reduce the rate of customer defection
B) make low-profit customers more profitable
C) enhance the growth potential for each customer through cross-selling
D) increase the longevity of the customer relationship
E) focus disproportionate effort on high-value customers

Question

Quizplus · Accepted Answer

By charging fees for once-free services, banks and phone companies can make low-profit customers more profitable, which helps to offset the costs of servicing these customers. Additionally, this strategy may encourage low-profit customers to switch to higher-profit products or services, ultimately increasing overall revenue for the bank.

Many Banks and Phone Companies Now Charge Fees for Once-Free