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Jacey Bishop
on Nov 06, 2024

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When a firm begins to charge high fees for additional services to non-profitable customers, it has determined that the __________ of those customers is too low to warrant added efforts at maintaining a relationship with them.

A) client value
B) lifetime value
C) relational value
D) market share
E) 80/20 value

Lifetime Value

the total worth to a business of a customer over the whole period of their relationship.

Non-profitable Customers

Customers who do not generate more revenue for a company than the costs incurred to serve them, thus not contributing to the company's profit.

High Fees

Charges or prices that are significantly above average or expected, often in the context of services or transactions.

  • Understand the concept of customer value and its impact on marketing strategies and customer relationship management.
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Abdiel SantiagoNov 11, 2024
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