SECTION 4:4 TEST

Why is customer retention often more valuable than acquiring new customers?
A) It is easier to market to new customers
B) It costs five times as much to acquire a new customer as it does to retain an existing one
C) New customers provide more feedback
D) Retaining customers requires more effort

2. What did Tony Hsieh believe about customer service?
A) It should be outsourced
B) It should only be handled by the customer service department
C) It should be the entire company's focus
D) It should be minimized to reduce costs

3. How has Apple maintained customer loyalty over the years?
A) By constantly changing its product offerings
B) By consistently delivering high-quality, innovative products
C) By focusing only on acquiring new customers
D) By reducing customer service efforts

4. According to Jeff Bezos, what should businesses focus on?
A) Being competitor-obsessed
B) Being customer-obsessed and working backwards from the customer's needs
C) Prioritizing profits over customer experience
D) Reducing product innovation to save costs

5. How does personalization help build customer loyalty?
A) It increases marketing costs
B) It makes customers feel valued and more connected to the brand
C) It complicates the sales process
D) It focuses on selling the same product to everyone

Answers:

1. B) It costs five times as much to acquire a new customer as it does to retain an existing one
2. C) It should be the entire company's focus
3. B) By consistently delivering high-quality, innovative products
4. B) Being customer-obsessed and working backwards from the customer's needs
5. B) It makes customers feel valued and more connected to the brand