Which of the following is true of long-term customers?
A)They are not effective in providing intangible benefits such as feedback and referrals.
B)They cost more to serve than new customers.
C)They provide a minor share in a company's new business.
D)They are usually more valuable assets than new ones because they buy more.

Question

Quizplus · Accepted Answer

Long-term customers are usually more valuable assets than new ones because they buy more over time. They also provide intangible benefits such as feedback and referrals, making option A incorrect. Additionally, since long-term customers have already formed a relationship with the company, the cost to serve them may be lower than acquiring and serving new customers, making option B incorrect. Lastly, they can provide a significant share of a company's new business, making option C incorrect.

Which of the Following Is True of Long-Term Customers