Improving Customer Retention May Have Little or No Effect on Current

Multiple Choice

Improving customer retention may have little or no effect on current period profits, but will have a significant effect on future profits because:

A) Over time, customers can be moved into a value-based segment.
B) Over time, predatory customers can be converted into passive customers.
C) Many non-value-added costs will be reduced by extending the duration of the customer relationship.
D) Leverage diminishes with the length of the customer relationship.