Final answer:
It is not necessarily a bad policy to include a financial or gift incentive in a win-back plan; in fact, it can be an effective strategy to re-engage past customers. It is important, however, to ensure that these efforts are cost-effective and lead to a positive return on investment.
Step-by-step explanation:
The question asks whether it is bad policy to include a financial or gift incentive in a win-back plan. The statement can be False because offering incentives is a common practice used to re-engage past customers who have discontinued use of a service or product. It is a part of customer relationship management, aiming to address customer churn and encourage previous customers to return. These incentives can come in the form of discounts, exclusive offers, or free gifts. The key is to customize the incentives to match the interests and needs of the lapsed customers, ensuring that the win-back effort appears personalized and valuable to them.
However, it is crucial to carefully analyze the costs and potential return on investment (ROI) of such incentives. If the effort leads to a loss or if the customers are unlikely to remain engaged after the incentive has been used, it could be considered a bad policy. Effective win-back strategies should align with overall business objectives and customer lifetime value considerations.