Question

After a careful analysis, a company that sells road building equipment found it was spending more to attract new customers than they were worth. How could they remedy this situation?

A. Decrease the company profit margin, thereby lowering costs to the customer
B. Determine how it can spend less per sales calls
C. Increase the number of sales calls per conversion of each customer
D. Engage in transfer marketing
E. Reduce its promotional efforts

Answer 1

To address the situation of spending more to attract customers than they are worth, the company can spend less per sales call, increase conversion rates, or engage in transfer marketing to become more cost-efficient.

Step-by-step explanation:

The company in question, which sells road building equipment and has discovered that it is spending more to attract new customers than the customers are worth, can remedy this situation in a few different ways. One effective strategy may be to determine how it can spend less per sales call. This could involve optimizing sales routes, using cost-effective marketing tools, or training the sales team to be more efficient. Another approach is to increase the number of sales calls per conversion of each customer, which would entail improving sales tactics or customer targeting to enhance conversion rates. Lastly, engaging in transfer marketing could also spread awareness about the brand through the word of mouth or by leveraging existing customers, reducing the dependency on traditional expensive marketing campaigns.