Why can retaining customers sometimes be more beneficial than only getting new customers?
Answer and explanation
Correct answer: Because satisfied customers may repurchase and recommend
A satisfied retained customer may buy repeatedly, require less persuasion, and recommend the business to others. This can support stable revenue and reduce the effort and cost involved in acquiring completely new customers. Retention is not automatic, but the other options wrongly deny the value of repeat buying and customer relationships.
Frequently asked questions
What is the correct answer to this question?
Because satisfied customers may repurchase and recommend
Why is this the correct answer?
A satisfied retained customer may buy repeatedly, require less persuasion, and recommend the business to others. This can support stable revenue and reduce the effort and cost involved in acquiring completely new customers. Retention is not automatic, but the other options wrongly deny the value of repeat buying and customer relationships.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
