Final answer:
The correct answer is A. A small percentage increase in customer retention can result in a significantly larger percentage increase in future profits. This is due to the value of repeat customers and the importance of a good business reputation, which affects consumer confidence and willingness to pay higher prices for products and services from reputable sources.
Step-by-step explanation:
A small percentage increase in customer retention can result in a much larger percentage increase in future profits. This concept aligns with the principles of customer service and the importance of reputation in business.
Firms prioritize obtaining repeat customers and building a good reputation because it not only supports customer satisfaction but also leads to recommendations, which are pivotal for the business’s prosperity. Companies strive for customer service excellence as it directly impacts their reputation and profits. Offering exceptional customer service can ensure job security for customer service representatives, as their performance can lead to positive feedback and opportunities.
Based on this rationale, it is clear that most agencies and brokerages would indeed have a customer retention goal contrary to statement C, and excellent customer service is inherently linked to job security as opposed to statement B. Also, when people are dissatisfied, they usually communicate with the company directly or through social media rather than reporting to an external agency, contradicting statement D.