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Lower cost existing customers are more likely to buy

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lower cost. Existing customers are more likely to buy new products and become more profitableover time.Target narrowly to bring in a new market segmentCorrect choice. Targeting loyal customers will likely be the most profitable strategy. Studiesshow that the longer customers are loyal, the more profitable they become. Loyal customerscreate a steady stream of revenue at a lower marketing and service cost. They are more likely tobuy new products targeted at their needs. And loyal, satisfied customers give positive personalreferrals—the best kind of marketing: effective and free.What should Arnold advise Brenda to do?
How should the customer service rep have responded?
Check Your KnowledgeQuestion 1What are the "three Rs" of customer loyalty?

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Term
Spring
Professor
Steven Maranville
Tags
Service system

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