A company uses lifetime value to segment their customers into five different segments.The marketing approach that should be used for the second segment,which has the second highest lifetime value,is:
A) offer them price incentives that will increase their purchase level
B) reward them for their patronage
C) reward them for their patronage and encourage them to spend more money with the firm
D) encourage them to increase their purchase level so they can move up to the next highest group

Question

Quizplus · Accepted Answer

Since the second segment has the second-highest lifetime value, it means that they are loyal customers who have already made significant purchases. Therefore, it would be wise to reward their patronage and encourage them to spend even more with the firm. This will not only increase their lifetime value but also help maintain their loyalty to the brand. Offering price incentives or encouraging them to move up to the next highest group may not be as effective in maintaining their loyalty as opposed to rewarding their patronage.

A Company Uses Lifetime Value to Segment Their Customers into Five