Discuss APICS CSCP Exam Topic 4 Question 114

A company that is focused on customer relationship management is most likely to take which of the following actions for customers who have been profitable over time?

AReduce the cost of serving them.

BTarget them for higher margin services.

CTarget them for greater attention.

DCharge them for administrative services used.

Suggested Answer: C

Customer Relationship Management (CRM) focuses on maintaining and enhancing relationships with customers, particularly those who have been profitable over time. By targeting these profitable customers for greater attention, a company can further deepen customer loyalty, enhance satisfaction, and potentially increase their lifetime value. This can include personalized services, special offers, and proactive communication. This approach ensures that the most valuable customers feel appreciated and are less likely to switch to competitors. Reference:

'Customer Relationship Management: Concept, Strategy, and Tools' by V. Kumar and Werner Reinartz

'The CRM Handbook: A Business Guide to Customer Relationship Management' by Jill Dych

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29 comments · newest first

Charlene 10 months ago

Wait, are they really going to charge for admin services? That seems odd!

Jina 10 months ago

I think C makes more sense, keep them happy!

Maryann 10 months ago

A seems counterproductive, why reduce costs for profitable customers?

Dudley 10 months ago

I agree with Sarah, greater attention is key for retention.

Garry 11 months ago

Definitely B, they want to maximize profits!

Jamika 11 months ago

I vaguely recall something about charging for administrative services, but that feels counterintuitive for profitable customers.

Jerlene 11 months ago

Reducing the cost of serving them seems risky; I feel like it might backfire if they expect more value.

Truman 11 months ago

I remember a practice question about customer loyalty, and I think giving them greater attention could really enhance their experience.

Lili 12 months ago

I think targeting them for higher margin services makes sense, but I'm not entirely sure if that's the best approach.

Jutta 12 months ago

I'm feeling a little lost on this one. The options seem similar, so I'll need to re-read the question and really consider the context of a CRM-focused company.

Junita 12 months ago

Okay, I've got this. A company focused on CRM would want to retain and grow their most profitable customers, so the answer is likely to be B - target them for higher margin services.

Mozelle 1 year ago

Hmm, I'm a bit unsure about this one. There are a few options that seem plausible, but I'll need to think it through carefully to determine the best approach.

Lenora 1 year ago

This seems like a straightforward question about customer relationship management. I'll focus on the key details - the company is focused on CRM and the question is about how they would treat profitable customers.

Sylvie 1 year ago

Ah, the age-old question of how to squeeze the most out of your loyal customers. I'm feeling a bit like a lemon right now.

Cyril 1 year ago

I think both B and C could be correct, as targeting them for higher margin services and giving them greater attention can both be beneficial for profitable customers.

Aron 1 year ago

I'm all about that option D. Charge 'em for everything, that's what I say!

Carlene 1 year ago

Option A seems a bit counterintuitive. Why would you want to reduce the cost of serving your best customers?

Scarlet 1 year ago

↳ replying to Carlene

A: Target them for higher margin services.

Donte 1 year ago

I disagree, I believe the answer is C) Target them for greater attention.

Blondell 1 year ago

Hmm, I'd say B. Increase those profit margins, baby!

Tegan 1 year ago

↳ replying to Blondell

C) Target them for greater attention.

Vinnie 1 year ago

↳ replying to Blondell

B: Yeah, that would definitely help increase profits.

Blair 1 year ago

↳ replying to Blondell

B) Target them for higher margin services.

Virgina 1 year ago

↳ replying to Blondell

A: I think B makes sense, targeting them for higher margin services.

Shaquana 1 year ago

I think the answer is B) Target them for higher margin services.

Moira 1 year ago

I think option C is the way to go. Gotta keep those loyal customers happy, you know?

Brock 1 year ago

↳ replying to Moira

Reducing the cost of serving them could help improve their overall satisfaction with the company.

Kimberlie 1 year ago

↳ replying to Moira

I think targeting them for higher margin services could also be a good strategy to increase profits.

Emeline 1 year ago

↳ replying to Moira

I agree, giving them greater attention is key to maintaining their loyalty.

APICS CSCP Exam - Topic 4 Question 114 Discussion