1. Improving customer acquisitions strategies provides increase opportunity to develop customer relationships. Which is not an effective strategy for improving customer acquisitions.

A. Reduce cost-to-serve B. Using more cost-effective recruitment channels C. Better qualifications of prospects

D. All of the above

2. Increasing customer profits is an important part of customer retention. Which is not a beneficial strategy for increasing profits in later years of the relationship. (3 pts)

A. Using more cost-effective recruitment channels B. Reduce cost-to-serve C. Cross-selling or up-selling additional products and services D. All of the above

3. When computing customer lifetime value which two financial applications should be used? (3pts)

A. Beta and Net Present Value B. Discount Rate and Return on Investment C. Net Present Value and Return on Investment D. Lifetime Profits and Beta E. Discount Rate and Net Present Value

4.

Name the two significant attributes of a highly developed relationship. Why are they beneficial for both the customer and the business? (4pts)

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