Question

Doc Robertson Designs is a high end fashion boutique for professional men. As part of their data mining program, they identified customers who had spent more than $1,000 on merchandise in the past and who had not made a purchase in the past 18 months. These customers were invited to an invitation-only sales event where they could purchase anything in the store for 35% off. This is an example of using data mining for _________?

Answer 1

The correct answer is Customer retention.

Step-by-step explanation:

Customer retention is the activity that sales organizations carry out in order to reduce the loss of customers. Successful customer retention begins with the first contact an organization has with a customer and continues throughout the life of the relationship. A company's ability to attract and retain new customers is not only related to its product or service, but also with the way in which it serves its current customers and the reputation it creates within and through the markets.

Customer retention is more than giving the customer what they expect, it is about exceeding their expectations so that they become loyal defenders of the brand. . The creation of customer loyalty puts 'value for the customer in place of maximizing profits and value for shareholders as the center of business strategy.' The key differentiation in a competitive environment is often the delivery of a high level.