Question

Which of the following events occur when there is minimal focus on customers?

A) high customer loyalty
B) below-average profits
C) long-run strategies to improve sales
D) reduction in customer turnover
E) low cost of marketing and sales

Answer 1

Minimal focus on customers can lead to negative consequences including below-average profits, a lack of long-run strategies for sales improvement, increased customer turnover, and higher marketing and sales costs.

Step-by-step explanation:

When there is minimal focus on customers, several negative outcomes can occur within a business. Instead of fostering high customer loyalty, neglecting customer needs and interests often leads to disengagement and a decline in repeat business. Consequently, one might see an effect such as below-average profits due to a decrease in customer retention and overall satisfaction.

Businesses might also become shortsighted, leading to a lack of long-run strategies to improve sales, which are crucial for sustainable growth. With an increasing number of customers turning to competitors that better meet their needs, we can expect an increase in customer turnover. Lastly, when businesses do not focus on customers, they cannot leverage the benefits of word-of-mouth marketing, increasing the cost of marketing and sales as they must invest more to attract new customers.