Final answer:
The statement is false. Higher levels of customer retention indicate better customer loyalty and can lead to longer customer lifetimes, which is beneficial for businesses.
Step-by-step explanation:
The statement that the life expectancy of a customer decreases exponentially as a business moves to higher levels of customer retention is false.
Exponential decrease means that the decline would be rapid and continuous. However, in the context of customer retention, higher levels of retention actually indicate better customer loyalty and therefore, can lead to longer customer lifetimes. Businesses strive to increase customer retention as it can result in repeat purchases, positive word-of-mouth, and increased revenue.