Strategist: Customers often complain that incentives to attract new clients are significantly more attractive than the incentives given to existing clients via loyalty programs. They do not understand, however, that such a strategy is essential to running a successful business.
Which of the following, if true, would most strengthen the strategist’s argument?
A. Many companies choose to invest in customer incentives that attract new clients, and avoid loyalty programs altogether.
B. A company can only be successful if it continually attracts new clients.
C. Customer loyalty programs are only valuable in certain industries, such as travel and internet service.
D. In most industries, competition keeps profit margins small enough that companies must choose between incentives for new customers and incentives for loyal customers.
E. No company can be successful without a strategic approach to client retention.
Source: Veritas Prep
Strategist: Customers often complain that incentives to attract new clients are significantly more attractive than the
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