Winning companies improve the value of their customer base by excelling at each of the following strategies EXCEPT ________.
A) retaining all customers regardless of profitability
B) reducing the rate of customer defection
C) increasing the longevity of the customer relationship
D) making low-profit customers more profitable or terminating them
E) focusing disproportionate efforts on high-value customers

Question

Quizplus · Accepted Answer

Retaining all customers regardless of profitability is not a winning strategy as it can lead to resources being wasted on unprofitable customers and neglecting high-profit customers. Winning companies focus on retaining high-value customers and improving profitability of low-profit customers, while terminating unprofitable customers if necessary.

Winning Companies Improve the Value of Their Customer Base by Excelling