After calculating the CLV of its customers, American Auto Supplies identified its most profitable customers and also found that a significant percentage of its customers are unprofitable. Which of the following actions would American Auto Supplies most likely take based on these findings?
A) fire its unprofitable customers
B) offer the highest level of customer service to its unprofitable customers
C) encourage unprofitable customers to become product champions
D) discontinue discounts for all but its most profitable customers
E) provide slightly lower levels of customer service to its most profitable customers

Question

Quizplus · Accepted Answer

American Auto Supplies would most likely fire its unprofitable customers because they are a drain on the company's resources.

After Calculating the CLV of Its Customers, American Auto Supplies