Antoine is in charge of customer acquisition and retention. He allocates more of his budget to customer retention than customer acquisition. Why does Antoine's decision make sense?
A) Low customer turnover is correlated with higher profits.
B) High customer turnover is correlated with higher profits.
C) Low customer acquisition is correlated with higher profits.
D) Low customer acquisition is correlated with higher employee satisfaction.
E) High customer acquisition is correlated with higher employees satisfaction.

Question

Quizplus · Accepted Answer

Low customer turnover is correlated with higher profits because retaining existing customers is often more cost-effective than acquiring new ones. Additionally, satisfied customers are more likely to make repeat purchases and recommend the company to others. Allocating more budget towards customer retention makes sense for Antoine to ensure a stable customer base and increase profitability.

Antoine Is in Charge of Customer Acquisition and Retention