A company that uses a four-tiered system to rank the profitability of its customers is:
A) Expanding the 80/20 customer pyramid
B) Eliminating non-profitable customers
C) Using volume segmentation
D) Committed to providing service equality to its customers
E) Not very knowledgeable about its customers

Question

Quizplus · Accepted Answer

The four-tiered system used by the company is a way of expanding the 80/20 customer pyramid, which refers to the principle that 80% of a company's profits come from 20% of its customers. By ranking customers based on profitability, the company can identify which customers fall within the top 20% and focus on retaining and satisfying them.

A Company That Uses a Four-Tiered System to Rank the Profitability