Question

A company that experiences a high customer churn has:

A. a high rate of customer acquisition as well as a high rate of customer defection
B. a consistent method of maximizing customer satisfaction
C. relied heavily on customer input to make it a high-performance company
D. adopted a strategy of customer individualization
E. a high rate of customer acquisition and a high satisfaction rating with these new customers

Answer 1

A company with high customer churn has a high rate of acquiring new customers but also loses a large number of customers, reflecting a high rate of customer defection.

Step-by-step explanation:

When a company experiences high customer churn, it signifies that the company has a high rate of customer acquisition as well as a high rate of customer defection. This does not necessarily correlate with high satisfaction ratings with new customers or a consistent method of maximizing customer satisfaction. It is possible for a company with high customer churn to also have poor customer satisfaction overall, as a company could be losing as many customers as it gains, or even more. High customer churn is often seen as a warning sign for the business that customer retention strategies may need to be improved.